MIDAS ACHIEVES NET PROFIT OF RMB16.4 MILLION FOR 3Q2013
- Revenue up 48.5% to RMB301.0 million on higher contributions from the Aluminium Alloy Extruded Products Division
- Bottomline lifted by RMB10.9 million in contributions from NPRT
For the nine months ended September 30, 2013 (“9M2013”), Midas’ Net Profit leaped 145.6% to RMB26.4 million, on the back of a 20.6% increase in revenue to RMB787.5 million
The Group’s balance sheet remains healthy, with cash and cash equivalents strengthened by RMB337.0 million to RMB884.0 million as at September 30, 2013, from RMB547.0 million as at December 31, 2012.
CSR, the nation’s biggest train maker, gained 7.2 percent to 5.08 yuan. China CNR, the second largest, jumped 8.4 percent to 5.56 yuan. China Railway will boost investment in new projects this year to 471.3 billion yuan ($77.4 billion) from a previously planned 416 billion yuan, National Business Daily reported, citing the company. Nine projects will be added, it said.
Midas returned to the black in 3Q13, recording a net profit of CNY16.4m from a loss of CNY6.1m a year ago. We believe that the worst is behind us and the strong order win momentum, especially from high speed train sector, should support a sharp earnings rebound from FY14 onwards. Maintain BUY and TP SGD0.75, based on 1.5x P/B.
