Midas

2Q10 results below expectations. Revenue +26% yoy to S$47.6m, but gross profit fell 1.4% yoy. Margin compression due to higher raw material cost and start-up costs arising from opening of a new 3rd extrusion line. Such start up costs could persist in 2H, as the new 4th and 5th extrusion lines come onstream during rest of year…
ben_oh : …Of consolation was better associate contribution from Nanjing Puzhen Rail Transport (NPRT), which increased from $0.2m to $2.4m, boosting overall yoy net profit growth to 18%. Midas maintains qtrly div of S0.25cts/sh…

Net orderbook of S$290m should underpin growth, and allow for utilization of new capacity. While potential HK dual listing still appears to be on the cards. KE maintains Buy with $1.20 target