Midas: DMG maintains Buy but TP lowered to $0.73 from $0.98, lowering estimates on uncertain outlook. Believe the accident could result in slower order wins from both domestic and overseas markets, and more extrusion orders are needed to sustain Midas’ growth momentum and the high valuation premium that it used to command.
Assume lower FY11/12 extrusion order wins of Rmb700m/Rmb750m with longer delivery time, and smaller Net Profits contribution of Rmb57m. FY11/12 NP estimates are revised down by 9%/29% to Rmb298m/Rmb282m respectively.
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