Midas

Midas: Wholly-owned subsidiary Jilin Midas Aluminium Industries clinched Rmb221.8m worth of contracts to supply aluminium alloy extrusion profiles and fabricated parts for projects in Europe and China. Approximately two-thirds (Rmb145.9m) are for two major train projects in Europe, while the remaining (Rmb75.9m) will be for three major metro projects in China, awarded by 32.5% owned JV Nanjing SR Puzhen Rail Transport (NPRT). The contracts are expected to take place between 2013 and 2016. This brings YTD contract win by the group to Rmb645.1m. Share price has been trading in a tight range for the past year, despite order being secured continually by the group. This may be attributed to the historical losses from NPRT stemming from the lack of operational efficiency, which showed a turned around in its recent 2Q13 financials. Maybank-KE has a Buy rating, citing that its current undemanding P/B multiples would deserve a re-rating should there is a significant pick-up in its order book. Midas currently trades at 1x P/B which is at the low end of its historical range. Latest broker ratings' as follows: Maybank-KE maintains Buy with TP $0.75 OCBC maintains Buy with TP $0.65 OSK DMG maintains Buy with TP $0.75 DBSV maintains Buy with TP $0.60 CIMB has an Outperform with TP $0.70