MIDAS HOLDINGS

Not premature to be buying big on this stock? There is no contract announcment for high-speed rail in China yet.....

MIDAS is not purely on high speed railways . Look at the METRO/ MRT contracts that MIDAS had been awarded recently .

Midas should cheong today. Momentum is there. The sentiment has improved a lot. In Business Times today, Patrick Chew is sounding bullish.

source: DBS Vickers, July 11.

Midas Holdings is poised for a strong business recovery, now
that Beijing has completed its year-long investigation of the
July 2011 catastrophic high-speed train crash in China,
according to its chief executive officer Patrick Chew Hwa
Kwang. Besides the Chinese capital approving spending that
has been put on hold on its national high-speed rail grid,
Chinese cities are also embarking on aggressive projects to
build metro systems. According to Mr Chew, after a year-long
freeze the Chinese Ministry of Railway (MoR) and state-owned
rail enterprises CSR Corp (China Southern Rail) and China CNR
(Northern Rail) have started pushing ahead with the RMB2.5
trillion (S$498 bn) railway construction and upgrading
programme under China's 2010-2015 Five Year Plan. Mr
Chew's views add further conviction to our analyst’s opinion
that the MoR could start giving out new orders again for the
industry and Midas, with a large exposure, would be the
obvious beneficiary. However, do note that results would take
a few quarters to improve from order wins. Currently, our TP
of S$0.49 is based on 1x P/B and the stock is trading at 0.7x
P/B.

after market closed . MIDAS announced it won another 2 contracts :
 
 
MIDAS SECURES NEW CONTRACT ORDERS WORTH RMB139.3 MILLION

 
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RMB74.6 million metro contract from JV Company NPRT for the Nanjing Metro Line 3 project
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RMB64.7 million worth of orders for Siemens AG projects in Russia and Belgium
 

Midas’ CEO Patrick Chew was interviewed by
Business Times and we highlight the following key
points from the interview.