World Precision Machinery

World Precision Machinery: Bags Rmb20.8m tender from world’s 2nd largest steel producer. The contract to design, supply and commission high-end stamping machines for Chongqing Baosteel Meiwei Wheel, the auto parts division of Baosteel Group Corporation. The tender win comes on the heels of the Group’s contract win from Kia Motors auto parts supplier announced just two weeks ago. The 13 stamping machines are expected to be delivered in 3Q2013. Notably, 2 units from the JS31 model series are from the 1,000 tonnage category, which is recognized as one of China’s highest tonnage stamping machines within the enclosed single-point category. Counter trades at 10.8x trailing P/E, and UOB KH has TP of $0.62 for counter.