Midas: IIFL retains Buy, but decreases price to $0.87 from 0.94. Note that share price -26% ytd on policy risk overhang following the removal of China’s minister of railways and delays in order inflow. Note however that Co. has rmb166m of orders YTD (-60% YoY) and China’s Ministry of Railway’s recent announcement of Rmb2.8t of investment over 2011-15 should help to alleviate concerns on poor order intake…..
House expect large highspeed train orders to be received in 3QFY11 and estimate FY11 order book at Rmb1.1b. Recent weakness in stock price present a buying opportunity.
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