Alemak,      , u another one,   your link not clickable leh, u should hit "enter" at the end of each link, lah.

http://yuquanchen.com/

yesterday that it has won its single largest project order to date worth

RMB603m. The project involves supplying aluminium alloy extrusion profiles

for 1600 train cars that will run at speeds of up to 350km/h. The project is

split between two customers, Changchun Railway and Tangshan Railway.

Midas will supply aluminium profiles for 800 train cars each concurrently

with the final deliveries made in 2H11. Management has indicated that

both contracts will have positive impact on its financials from 2009 - 2011.

More contracts to come? Management was upbeat on meeting its

guidance that it could win between S$200-300m worth of contracts this

year. This contract translates to about S$120m and doubling this amount

is plausible with Midas' track record of delivery and position as a PRC

certified supplier to the world's train manufacturers along with the China

Northern Railway and China Southern Railway groups

Double edged sword.

However, winning contracts at this rate will mean that Midas will likely

have to raise its capacity with new production lines or find partners to

outsource some of the less technically demanding parts.

Midas last reported a net cash position of about S$11m and annual

operating cash flow of about S$32m. Should new lines (costs S$30-35m

each) be considered, we think that Midas might need to raise capital.

Nevertheless, we think such an exercise would be viewed positively as it

caters to tangible assets for earnings expansion

Bumping up estimates, upgrade to BUY.

This development puts Midas investment case in a different positive light.

Previously, the high spending on capex was not met with an increase in

contract wins and this created share price drag. However, winning these

contracts authenticate Midas aptitude for technically challenging

requirements and instils earnings visibility.

We have bumped up our net profit by 2-11% in FY09F and FY10F,

respectively. Our revisions are conservative as we assume a reasonable

ramp up of its 3rd line coupled with status quo in product pricing for the

new contracts. Our PER peg is revised up to 15x FY10F PER (prev. 12x

FY09/10F) and we upgrade Midas to a BUY with a fair value of S$0.85

(prev. S$0.64). We think our new 15x PER peg over STI's 12x PER is

justified given Midas' earnings visibility, growth and its position to benefit

from the impending deluge of railway spending from the Chinese

Government.

Alemak, another   

Take it easy, relax,   

Oh yah hor, dun forget hor, China wants face-cee n reputation you know...

They even show the whole world, they too can send man to the moon,

I m sure u know this right.

Alemak, u also another one, give me some respect leh, try to keep this thread purely for Chinese classic songs lah, tulong... tulong.. leh.

Dun mind open a new thread .... plse....plse...plse