Midas: CIMB downgrade to neutral from outperform, reduces target to $1.10 from $1.14. Notes that recent run up has priced in the positives of its HK dual listing and raises dilution concerns over the offer of 220m new shares, capped at a maximum offer price of S$1.05…
Expects group’s utilization rate to increase from 70-80% for FY11-12 which will increase gross margins, but after factoring in new estimates as well as dilution from new shares, reduces FY10-12 EPS estimates by 3-5%. Target price still based on 15X CY11 PE, in line with peers.
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