Midas: Nomura downgrade Midas Holdings to ‘Neutral’ from ‘Buy’, and reduces TP HK$5.90/S$0.97 from HK$7.20/S$1.18, noting that Co’s future growth is at risk amid the uncertainties in China’s high-speed railway development…
House view that recent Railway news is purely negative for the whole railway sector, as minister has been extremely bullish on China high-speed railway construction during his tenure. While already started projects are not likely to be terminated and train procurement orders are unlikely to be withdrawn, long-term railway development now faces more policy risks, which could cause a shrinkage in PE multiples for the whole sector.
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