Midas

Midas: OCBC maintains Buy with $0.67 TP. House note that Midas Holdings’ 3Q13 results exceeded expectations, with revenue jumping 48.5% YoY to CNY301.0m, or 15.8% above our forecast. While gross margin of 20.8% (-10.7 ppt YoY) disappointed, bottomline reversed from a Rmb6.1m net loss in 3Q12 to a net profit of Rmb16.4m and beat projections of Rmb13.3m. Looking ahead, expects contribution from its recent CNY167.5m high-speed railway (HSR) contract to be recognised in 4Q13 and 1Q14. Also expect Midas to secure more HSR train car related contracts in late Dec or early Jan 2014 from the second round of tender exercise by the China Railway Corporation.