MIDAS AGAIN SECURED ANOTHER RMB 1.26 BILLION TRAIN CONTRACT

MIDAS’ JV COMPANY NPRT SECURES RMB1.26 BILLION TRAIN CONTRACT


- NPRT to supply 198 train cars to Shenzhen Metro Line 3
- For delivery from 2015 to 2016



Singapore & Hong Kong, June 11, 2013 – Midas Holdings Limited (麦达斯控股有
限公司) (“Midas” or the “Company”, together with its subsidiaries, the “Group”; SGXST
stock code: 5EN; SEHK stock code: 1021) today announced that its joint venture
company, Nanjing SR Puzhen Rail Transport Co., Ltd. (“NPRT”) (南京南车浦镇城轨
车辆有限责任公司) has secured a RMB1.26 billion contract.
The latest contract is awarded by Shenzhen Metro Group Co., Ltd (深圳市地铁集团
有限公司) for the supply of 33 train sets (1 train set = 6 train cars), or 198 train cars,
for Shenzhen Metro Line 3 project, with delivery slated from 2015 to 2016.
This contract is expected to contribute positively to the Group’s financial
performance for the 2015 and 2016 financial years.

the only company that is winning multi BILLIONS contract within few weeks

Midas so many sparks but no 'Firework'.

I've check back on the company records, it had been securing contracts after contacts, yet the profit still on the down trend. It's PE is way too high. The share price have fallen from over a dollar to about 50 cts.

Contract secured does not guarantee profit. I don't think investors can do well on this stock. Look like the BB had been capitalized on selling on news.

Noticed each time a contract is secured, the share price will rise & then fall back to square-one.

Who profited from it?

I am holding MIDAS for longer term. Today news that China is investing more into infrastructure and moving more rural resident into the city. More cities going to be built as well as increasing the speed of building railway as it is one of the cheapest form of transportation that can carry massive number of passenger between cities.

The big picture worldwide seem to be changing with some suggesting that FED will cut their bond purchase and trim down the QE. Hence i believe that MIDAS can be a defensive counter as the China authority has been forced to focus in growing its domestic market since export has been badly hit by world market.

Contract won may not mean big profit... history can't be use to judge this counter as in the past the hangzhou train crash and corruption issue result in big drop in orders.

The new orders will provide stability and work till 2016 and at the same time improve factory utilisation... and hence profitability as well as improve margin.

Result will improves once these order has been executed... share price will react to more order win as well as release of 2nd half result....

MIDAS IS A STRONG BUY

I hope you do well with Midas. Is this the main stock in your portfolio? What % does it take up? I dare not buy too much because the PE is quite high and the hi-speed train contracts have yet to show up. My ave price is 35 cents.