Midas

Midas: Secured Rmb71.9m worth of contracts from CNR Changchun, comprising the supply of aluminium alloy extrusion profiles for 38 train sets (228 cars) for the Shenzhen Metro Lines 2and 5 projects, and for 24 train sets (144 cars) for the Wuhan Metro Line 4. The contracts are slated for delivery between 2014 and 2015. These projects are expected to have a positive impact on Midas’ financial performance for FY2014-15. To recap, Midas has hitherto been CNR’s preferred supplier, so any strong order wins from CNR will likely bode well for Midas. Aside, CSR Corp had clinched Rmb20.8b worth of contracts. These could also flow down to Midas, which also supplies to the former. The stock trades at about 0.86x P/B, and 53.75x trailing P/E due to a low earning’s base. That said, forward P/E is expected to narrow to 17.3x.