Midas

Midas: Less than a week since the second largest contract for the year, its 32.5% joint-venture company, Nanjing SR Puzhen Rail Transport (NPRT) secured a Rmb1.1b contract with their consortium partners, Shanghai Alstom Transport Electrical Equipment and Alstom Transport S.A. The contract was awarded by Nanjing Metro Group Co Ltd, for 29 train sets (174 train cars) for the Nanjing Metro Line 4 Phase 1 project, with a delivery date from 2014 to 2016. This contract is NPRT's fourth and largest contract for the year, and brings total contract wins for NPRT to Rmb2.5b year-to-date. Highlighted in our previous posting, Midas' business prospects look increasingly positive with the order momentum. Based on its last closing price of $0.48, Midas trades at a forward P/E of 27.7x and P/B of 1.0x. The street has a 12-month TP of $0.67, implying an upside of 40%. CIMB has an OUTPERFORM rating with TP of $0.70.