Midas    Last:0.192   -

Midas

It will break through 86c soon... More support required...

 

Now, I think u r wrong.

The gap had been closed at this point in time.

I m bullish

DnApeh      ( Date: 05-Oct-2009 22:23) Posted: i think you are wrong. Support at 0.81 (low of 7 Aug and 2 Sep) broken today and price closed below it. 2 Oct was a gap down. i am bearish. richtan      ( Date: 05-Oct-2009 22:15) Posted: Below is my chart analysis for sharing and exchange pointers. My TA chart is posted to share n exchange pointers with those TA practitioner whom believes in TA.   If u are a TA detractor, plse just ignore n refrain from peeping at my chart posting n start making unconstructive comments and plse do not be so childish or lunatic as to abuse the rating system by intentionally rating it as "bad post", this is not cursing but Buddhism beliefs tat intentional bad deeds will accumulate for yourself and possibly your next generation, "bad" karma for your "bad" deeds. If u think it is a bad post, then be constructive and kindly post your TA for sharing. This is only my view n I may be right or wrong, so dyodd and SOBAYOR.

 

strong counter!

 

haha happy :) "wink"

 

action lai liao.. gogogo

 

From CIMB:

Upgrade to Outperform from Neutral.

We keep our FY09-11 EPS estimates unchanged but roll over our target price for Midas to
S$1.14 from S$0.87, now based on 15x CY11 P/E (based on peer average).

Our previous target price was based on 15.3x CY10 P/E.

We upgrade Midas to Outperform on the back of better earnings visibility for FY11-12.

• Rmb1.76bn metro train contract secured but more could come.

Midas announced on 28 Sep 09 that its associate, NPRT, had been awarded a contract
worth Rmb1.76bn by Hangzhou Metro to supply 288 metro train cars. The award of
this contract should improve earnings visibility for FY11-13. Including this contract,

Midas’s order book is Rmb6.26bn.

We believe there could be more contracts to come from China as the Chinese government
has yet to fully award all the contracts for its planned 800 High-Speed train sets.

• China’s railway network set to become second largest in the world.

PRC’s Vice Minister of Railways, Wang Zhiguo, announced in Aug 09 that China will
increase its rail construction spending to Rmb600bn for 2009 and spend at least
Rmb700bn per year on average over the next three years. With this increase, China’s
operating railway network will be expanded from 80,000km to 86,000km by the end of 2009
and 110,000km by 2012, surpassing Russia and second only to the US.

• Proposed secondary listing in Hong Kong.

While a wider investor base would be generally positive for Midas, we believe its valuations
are unlikely to improve as comparable companies in Singapore and Hong Kong are trading at similar
valuations.

Valuation and recommendation

Upgrade to Outperform from Neutral. We keep our FY11 earnings forecast
unchanged as we had earlier factored in potential contract wins for the second-phase
High Speed train contract awards. We believe that additional contracts will only be
awarded in 2010, at the earliest, which would affect EPS estimates for FY12 and
thereafter.

However, we upgrade our target price to S$1.14 as we roll over to 15x CY11 P/E from
S$0.87 (15.3x CY10 P/E). We believe that 15x P/E is a reasonable valuation for Midas.

China South Locomot and Zhuzhou CSR Times are trading at a higher 19x CY10 P/E
on average, but we will not ascribe a similar P/E to Midas as the former two companies
are train manufacturers and are higher up the value chain. China Rail Group, China Rail
Constr and China Comms Constr mainly provide construction services to the rail
industry and thus trade at the lower end of the valuation spectrum.

We upgrade Midas to Outperform from Neutral as its Rmb1.76bn metro train contract
win and execution of Rmb1.05bn worth of aluminium extrusion and fabrication contracts
won since Jun 09 have provided better earnings visibility for FY11.

We see potential catalysts from contract announcements following the award of the 7,000 High-Speed
train cars and new orders for metro train sets.

 

Good.. this is the few FA strong counters which nt yet really fly higher..

 

Midas does not just depend on trains, read extract from below:

Life after trains:

Over the longer term, management will look into other feasible, promising industries such as aviation to continue its growth.

I had been posting almost everyday the below writeup from Kim Eng:

Midas – Company update (James KOH 64321431)

Previous day closing price: $0.865


Recommendation: Buy (maintained)


Target price: $1.15 (Previously $0.985)

Still packing the theatre

We recently hosted a roadshow for Midas in the US, which was very well-received by funds.

The exciting growth prospects within the China rail infrastructure space continue to capture the
imagination, with the main discussion points being the competition within this space, the sustainability of growth for Midas and the progression on expansion.

A smaller share of the bigger pie

While Midas still holds a clear lead in terms of certification and track record,
management expects competition to intensify, with listed peers such as Shandong Nanshan (Shanghai) and Zhongwang (HK) stating their intentions to break into this market.

Going forward, they believe achieving a lower 50-60% market share of this growing pie would be a more reasonable target, which will still ensure strong growth.

Life after trains

Improving the rail infrastructure network is an important government initiative, with current directives providing clear visibility over the next 2-3 years. Even subsequent to the stimulus package, we expect this program to continue.

Over the longer term, management will look into other feasible, promising industries such as aviation to continue its growth.

Progress on the installation of 4th and 5th extrusion lines

We now expect the 4th and 5th extrusion lines to come on stream by 2Q09 and 4Q09, earlier than our earlier estimates.

Our model factors in Midas winning a 50%-60% market share of the upcoming round of orders, which is twice the size of the first round. This will already keep all its five extrusion lines busy at about 75% utilisation.

Much more tracks to run

We adjust our earnings to take into account higher effective capacity in FY10 and higher tax rates in FY11.

We now peg our target price to 20X FY10E.

We believe the Chinese rail industry is still at its early-mid cycle.

With the Ministry of Railway due to announce the 2nd round of high-speed train orders, we expect orders to flow down to Midas within 3-4 months

 

From OCBC Investment Research:

Midas Holdings:

Evaluating listing in HK.

Maintain BUY.

Midas Holdings (Midas) announced today that it is planning a secondary listing of its shares on the Main Board of the Stock Exchange of HongKong.

Midas has appointed Credit Suisse (Hong Kong) to assist the group in evaluating and preparing for this listing.

Mr Patrick Chew, CEO, says that Midas "is now ready to take Midas towards the next development phase and is optimistic that a listing on both the Singapore and HongKong bourses will allow Midas to tap into a wider investor base, increase liquidity and enhance the stock value".

Hong Kong valuations tend to be richer and this could bode well for dual-listed Singapore stocks.

Maintain BUY, fair value of S$1.05.

(Kelly Chia)

 

From "Lim & Tan securities":

We remain positive on Midas given its robust
growth prospects, underpinned by its robust order
books of RMB1.4bln as well as the robust prospects
of its 32.5% owned subsidiary company, also
underpinned by solid order books of RMB4.5bln.


And this in turn reflects the government’s active
efforts to support the railcar industry in China to
reduce transportation bottlenecks as well as reduce
transportation costs. Rail transportation is much
cheaper than air travel and is much safer and causes
much less pollution than automotive transportation.


The company will be increasing their production
capacity by 200% in the next 2 years to cope with
the strong order flows. Its PE of 20x remains
undemanding compared to its expected growth rate
of 40-50%.

 

I had been posting almost everyday the below writeup from OCBC Investment Research:

Midas's firm order book of 1.4 billion yuan (S$296 million),  more anticipated contract wins in Sept - Nov 2009... will serve to under-gird valuations"

 

dun say 1.20 1st la.. now aim for 90cts 1st by nov. Then $1 by dec. slow & steady.. some report mentioned oct-nov can watchout if they are able to get new contract..

keepnosecrets      ( Date: 08-Oct-2009 10:43) Posted: Ah.. so you agree it can go up more than people expect? I think if keep till Dec, barring a collapse in world stock markets, Midas should be more than $1.20.  risktaker      ( Date: 08-Oct-2009 10:31) Posted: hehe dont worry will up more :)

 

Ah.. so you agree it can go up more than people expect? I think if keep till Dec, barring a collapse in world stock markets, Midas should be more than $1.20. 

risktaker      ( Date: 08-Oct-2009 10:31) Posted: hehe dont worry will up more :)

 

oops.. i'm riding the starhub wave.. no more bullets for this.. thanks for the recommendation!

risktaker      ( Date: 08-Oct-2009 10:31) Posted: hehe dont worry will up more :)

 

hehe dont worry will up more :)

 

Midas Holdings Ltd (S$0.82) - More contracts to come?

We keep our FY09-11 EPS estimates unchanged but roll over our target price for

Midas to S$1.14 from S$0.87, now based on 15x CY11 P/E (based on peer

average). Our previous target price was based on 15.3x CY10 P/E. We upgrade

Midas to Outperform on the back of better earnings visibility for FY11-12. We

believe that Midas’s recent Rmb1.76bn contract win is only the start of a series of

train contracts from China as the Chinese government has yet to fully award all

the contracts for its planned 800 High-Speed train sets. Recent Chinese plans to

have the second largest railway network in the world by end-2009 support our

expectation of more contracts to come.

 

I think this issue is a political in nature and if Midas shares are not too much shorted here, should I see no problem.

edskh78      ( Date: 08-Oct-2009 08:14) Posted: Midas up to 91 cents on Sep 22 after it announced that it is proposing a dual listing in Hong Kong. But since then, the shares have been dropping in line with the correction market wide. But yesterday, if I understood correctly, SGX reply to Li Heng's proposed dual listing in Hong Kong has stated that they are required to delist in Singapore if they go ahead with their dual listing in Hong Kong. How do you guys think this will affect Midas' plan to dual list in Hong Kong and also its share price movements?

 

Enjoyed this ride while it last :)

risktaker      ( Date: 07-Oct-2009 13:46) Posted: Happy Hor :) Midas will chong soon .... hor zhou yu :P

 

Midas up to 91 cents on Sep 22 after it announced that it is proposing a dual listing in Hong Kong. But since then, the shares have been dropping in line with the correction market wide. But yesterday, if I understood correctly, SGX reply to Li Heng's proposed dual listing in Hong Kong has stated that they are required to delist in Singapore if they go ahead with their dual listing in Hong Kong.

How do you guys think this will affect Midas' plan to dual list in Hong Kong and also its share price movements?

 

 Wow!! very good direct translation man

freeme      ( Date: 07-Oct-2009 12:34) Posted: slow and steady.. b4 correction its above 90cts n at the same time they announe getting contract that will boast their earnings. smelly smelly also worth above 90cts.