Midas

Midas: In a recent note out by NRA on Midas' fourth contract win for 2013 worth Rmb182.8m (EU22.7m) issued by Siemens AG and Sinara Group of Russia, brings YTD total contract win for Midas of Rmb1.34b. NRA highlights that they are still awaiting the elusive high speed contract, which were stopped in Nov 2011 following the Shanghai train accident. The newly revamped Transport Ministry and the new private company running the trains are some of the changes implemented by the new Xi Jinping Government are in their opinion positive for Midas. Other things being equal - 2012 should be the earnings low point for Midas especially since its secured these four new contracts in 2013. NRA noted that UOB Kay Hian's recent technical alert for Midas' share price weakness with range of $0.48 to $0.52 presents a good fundamental buying opportunity for investors who are prepared to take a 12-24 month investment view.