Midas

Midas: OCBC maintains Buy with $0.54 TP. Midas recently clinched a CNY44.3m metro contract, thus bringing total YTD order wins to ~Rmb 423.2m. Looking ahead, Midas will continue to strive for potential new metro and international railway contract wins of ~Rmb 380-580m for the rest of 2013. Overall, house buoyed by the positive news flow happening in China’s metro industry, and see Midas as a key beneficiary given its track record as a supplier to major Chinese train manufacturers. However, the time frame for new high-speed railway train car tenders by the China Railway Corporation remains uncertain, although there is optimism that it could be resumed in 3Q13.