Midas

Midas: CIMB maintains O/p with $0.58 TP. House note that the proposed reform of China’s Ministry of Railway (MOR) will add to near-term order book uncertainties – not good for price performance. However, view MOR’s reform as a longer-term positive. Traction gained in diversification efforts should provide order book support. While house anticipate near-term price weakness from lower order book visibility, think that investor demand could return eventually. House slash our FY13 estimate by 75% due to lower order assumption but keep FY14-15 numbers. Maintains Outperform with an unchanged target price, based on 17.3x CY14 EPS, a 10% discount to the 5-year historical average. Catalysts could come from faster-than-anticipated contract wins.