Midas

Midas: Midas secured contracts worth an aggregate Rmb318m for high-speed train car body components from CNR Tangshan Railway Vehicle, a subsidiary of China CNR, and is slated for delivery in 2014. This is Midas’ largest single announced contract win since Jan 2010 and brings year-to-date orders bagged to Rmb389.9m. Market watchers are expecting an additional set of orders from CNR Changchun- another subsidiary of China CNR that Midas is working with, to be announced soon. As highlighted previously, Midas is the key beneficiary listed on SGX that may benefit from the favorable policy moves occurring in the Chinese railway sector. Valuations remain fair, with Midas trading at 0.98x P/B. Latest broker recommendations: OCBC maintains Buy with $0.66 TP CIMB maintains Add with $0.71 TP