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

Kim Eng , CIMB , Lim & Tan , DBS vickers all upgraded Midas to buy .

good analysis by DBS Vickers on 7 Sept 12.

Midas: Metro contracts are rolling, matter of time before high-speed catch up

Catalysts: As part of its continued efforts to develop its infrastructure network, we believe China should resume its high speed passenger railway programme after an 18 month suspension. When the flow of contracts resumes, Midas is well positioned to benefit as the company has a 60% market share of aluminum profiles for train carriages.

On the valuation front, Midas has been trading at depressed P/BV of about 0.7x in the last 2 years.

Risk: Without contracts from the high-speed passenger railway segment, which account for over half of its railway related orders (>70% of overall earnings), Midas’ profitability will remain depressed.

midas still consolidating for next phase of rally . very strange midas no rally today

blue chips rallied . Small to mid cap should be their turn to rally already

While QE3 is boosting sentiment, it won’t result in a sustained bull market when macro fundamentals are still trending down and it isn’t a major game changer, CIMB says in a note.

“Current valuations (Asean P/BV now at 1.5x-3.2x) are much higher than QE1, macro fundamentals are still not looking up and there are the nagging European debt concerns in the background. Value hunting remains a key strategy.”
It screens its coverage for Asean stocks with good fundamentals, an ROE uptrend and reasonable P/BV. “In Singapore, we see value across a wide spectrum.”

It says the offshore segment’s value offerings focus on smaller-mid cap plays such as Swiber, ASL Marine, Mermaid, Ezionand Ezra.

Among commodity plays, it sees value in the supply chain managers/planter, Noble, Olam and Wilmar.

Among property stocks, it tips OUE, Ho Bee, Singapore Land and CapitaLand, with other value picks including Tat Hong, Biosensors, Broadway, DBS, United Engineers, Yongnam, and Midas.

Good pick by CIMB.
Midas has a long way to go from 42 cents -- target S$1.00 -- based on a resurgence in high-speed rail contracts that should be coming over the next few quarters.