Midas: Could see some interests, after announcing that has secured a contract worth Rmb82m from CNR Changchun Railway Vehicles, to supply aluminium alloy extrusion profiles, including certain fabricated parts, for 30 train sets (1 train set = 8 train cars) for the “CRH5 EMU” inter-city high speed train project with speeds up to 250km/h. Delivery is expected to take place in 2011….
The contract is expected to have contract is expected to have a positive impact on grp’s financials for FY11. Grp remains confident to continue capitalising on the PRC govt’s continued focus on railway development in the coming years…
We note that at current level, Grp trades at 19.8x FY10E PE vs its histrocal average of 25x and regional peers average of 37x, suggesting further possible upside to current share price, as grp rides on the growing wave of increasing modernization in China….
Technically, stock looks oversold, with stochastics beginning to hook upwards from deep oversold territory, while stock appears well supported at $0.92. See near term rsistance at $0.96 (20day MA)
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