According to the daily Parkiet, (39 PLN, -1,31%) made a grand opening of its factories in Ukraine. One of the participants of the ceremony was President of Ukraine Wiktor Juszczenko.
Our view: This is a bit of a surprise as according to the most recent information from the company the production was supposed to start only in the beginning of 2008. However, in our opinion, the grand opening does not mean that sales has already started. We believe that the nearest months will be devoted for technical trials, stocking and reaching full capacity and the revenues will be materially generated only in 1Q08. Nevertheless, the information was the ceremony gives confidence that everything in on track and with Ukrainian factories on-line the results of are expected to be significantly better in 2008. Given the recent weakness in the stock price, we believe the news could have a positive trading impact.