Midas

Midas: Midas' joint-venture company, Nanjing SR Puzhen Rail Transport (NPRT) has clinched a contract worth Rmb420m for the supply of 56 train cars for Shenzhen Metro Line 4, with a delivery date up to 2014. This contract brings contract wins for NPRT to Rmb1.4b year-to-date, and the growth in orders could potentially see a turnaround in NPRT's losses reported recently for 1Q13 and FY12. Midas has a 32.5% stake in NPRT. Orders for China's high speed trains are known to be behind schedule due to the clamp down on corruption in the ministries. With the new order momentum coming on stream, business prospects for Midas look increasingly positive. Based on its last closing price of $0.49, Midas trades at a forward P/E of 27.9x and P/B of 1.0x, compared to its 10-year average of 22.3x forward P/E and 3.3x P/B. Consensus has a 12-month TP of $0.67, which implies an upside of 37%.