Midas Holdings

OCBC Investment Research, Oct 17

MIDAS Holdings (Midas) said on Wednesday that it had secured a number of contracts amounting to 221.8 million yuan. These include 17.7 million euros (about 145.9 million yuan) worth of international contracts for two main train projects in Europe (delivery expected between 2013 and 2017) and metro contracts totalling 75.9 million yuan in China.

The metro contracts from China were awarded by Midas's 32.5 per cent owned joint-venture company, Nanjing SR Puzhen Rail Transport (NPRT), and involve a number of projects such as the Nanjing Metro Line 4 project. Deliveries for the various projects are slated to occur between 2013 and 2016.

This latest development brings total YTD contract wins by Midas to about 645.1 million yuan.

We are keeping our estimates intact as our projections allow for such contract wins. We expect Midas's share price to react positively given these sizeable contract wins. Maintain BUY and S$0.65 fair estimate on Midas, based on 1.3 times blended FY13/14 forecast P/B.

BUY