Midas

Midas: Positive momentum continues, with grp announcing that it has bagged (at the subsidiary level) $17.3m (Rmb 86m) worth of orders to supply components to make MRT trains for Alstom Transport SA, a major train car maker that supplies to SMRT. Midas will supply the components for 108 train cars for the North East Line and 72 train cars for the Circle Line. Delivery is slated to take place progressively from 2013 to 2015. These orders are expected to contribute positively to the group's financial performance for the financial years ending 2013 to 2015. We note that latest contract brings grp's YTD order wins at the subsidiary level to Rmb 380.2m, which lifts grps order book to approx Rmb700-800m. Note that 2 out of the 3 contracts won this year have been international contracts so far, and share price could see a potential rerating should orders starts flowing in from its domestic market. While its good to see the grp diversifying away from its domestic mkt.