Midas

Midas: Maybank-KE maintaining its Buy Call with $0.75 TP, noting that last weekend China Railway Corp (CRC) announced the result of its first high-speed train tender in past two years. A total of 159 train sets order have been split between CSR (108 train sets) and CNR (51 train sets). Believe this is just the beginning of a new train purchase cycle by Chinese government. Expect Midas to win around RMB250-300m supply contracts in high speed train space this year. But it is very small compared to what we are likely to see in FY14/15. Expect Midas’ order book to reach RMB1.5b in FY15 onwards. Historically Midas’ P/B closely followed its order book, which suggests that currently undemanding P/B multiples deserve a re-rating if order book could be substantially boosted to RMB1b or above.