Re:MIDAS HOLDINGS secured RMB 3.13 billion + 1.4billion + 860 million contract

I don't doubt that Midas can touch 50 cents but it will only happen when it clinches high-speed rail contracts. I wait with bated breath for that.

In the meantime, Midas will hentak kaki as people take profit and others accumulate in order to positiion themselves for a resumption in tenders for high-speed rail contracts in China.

The first high-speed train between Zhengzhou and Wuhan starts running on Sept 28. [Photo/Xinhua]



High-speed rail links Zhengzhou and Wuhan

A new high-speed railway, which connects the capital cities of Henan and Hubei provinces in Central China, was put into service on Friday, creating a new north-south corridor in the national high-speed rail grid.

The first pair of bullet trains started to run on the Zhengzhou-Wuhan line at 9 am on Friday.

The new line decreases the travel time between the two cities to two hours, down from four and a half hours.

Construction began on the 536 km line, with a total investment of 57 billion yuan ($9 billion), in 2008, with a top designed speed of 350 kilometers per hour.

For now, the new line will carry 24 pairs of trains every day, with a speed limit of 300 km/h, railway authorities said.

The line is a major part of the 2,300-km Beijing-Guangzhou high-speed railway, China’s longest high-speed line in planning, which is expected to open by the end of the year.

Updated: 2012-09-29 01:38

By Tan Zongyang ( China Daily)

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Do you think Midas can pull back to below 40 cents? I will not buy it at current 42 cent level. It's too expensive and it will not have a good FY12 profit to show. It's the future prospects that people are banking on. I only wish to buy below 40 c.

The support is at 40.5cts. It can run to 46-48cts and that's where most profit taking will take place. If u hv no interest in the 15% profit, then you need not go in at this moment. Dun think the stock will rocket to 50 cts directly and above in de short term (unless more good news from Uncle Wen). However, think it is unlikely to go below 40 cts, barring any macro economic situations, where all other stocks will also be affected. Just a personal opinion, good luck. 

Pse see CIMB report below and attached info from Maybank KE.Good awareness on potential of Midas... Good luck!
Midas: CIMB maintains O/p with $0.63 TP. Note that Midas has re-rated recently but still see price catalysts from high speed contract wins. CSR, China's state owned locomotive manufacturer, expects high-speed orders by 4Q12 or 1Q13. Midas will be one of the key beneficiaries on such announcements. Add that China's National Development and Reform Commission (NDRC) has planned close to Rmb1 trillion of urban railway projects up until 2020. CSR is expecting high-speed contracts by 4Q12 or 1Q13. It typically takes 3-6 mths before contracts tickle down to downstream players like Midas; this means that orders could come as early as 1Q13 House roll forward to FY14 P/E, with target now based on 15.5x (10% discount to its 5-yr forward average; previously -0.5SD). House change valuations to account for potential ROE and growth normalisation. Stock catalysts are expected from order flows, while operational risks are contained.
Attached Report from Maybank KE:  remisiers.org/cms_images/research/Oct01-..._CIMB_3.10.12_OP.pdf