Midas

Midas: OCBC Upgrades to Buy from Hold with new TP of $0.41. House note that despite a reported a dismal set of 2Q12 results, there is growing optimism of a recovery in China’s high-speed railway (HSR) sector. Believe that FY12 would be a non-event for Midas as it is transitioning into a recovery in FY13. Upgrade Midas from Hold to BUY as switch valuation matrix to 0.8x FY13F P/B. This is premised on an anticipated pick up in Midas’ orders win momentum and likelihood of a resumption of HSR passenger train car contracts by China’s Ministry of Railways in the near future, which would provide a catalyst for Midas’ share price.