MIDAS HOLDINGS

MIDAS WINS HIGH-SPEED TRAIN CONTRACTS WORTH RMB167.5 MILLION

- For the supply of aluminium alloy extrusion profiles and certain fabricated parts for high speed trains to major PRC train manufacturers


Singapore & Hong Kong, 21 October 2013 - Midas Holdings Limited (麦达斯控股 有限公司) (“Midas” or the “Company”, together with its subsidiaries, the “Group”;SGX-ST stock code: 5EN; SEHK stock code: 1021) is pleased to announce that its subsidiary, Jilin Midas Aluminium Industries Co., Ltd (“Jilin Midas”) has won contracts worth an aggregate sum of RMB167.5 million.

THIS GEM IS BEGINNING TO FLY

MIDAS ENTERED BULL TERRITORY ALREADY .. TECHNICAL INDICATORS SCREAMING FOR BUY

Railway construction in China is expected to increase during the fourth quarter of the year, a senior observer has said.


The observer told Shanghai's First Financial Daily that China Railway Corp, which has only used about 60% of its planned 690 billion yuan (US$113.4 billion) budget on rail-related fixed-asset investments for this year, is expected to splurge in the remaining months to ensure their budget for next year. This, coupled with widespread enthusiasm for the construction of intercity railways in several provinces, will see a railway construction boom during the fourth quarter, the source pointed out.

It's deemed contracts value is worth RMB 2.01 BILLION to date .


These sum are just for the contracts won this year 2013 alone . (Not inclusive are those other billions contract won last year ) . Such that total amount is even larger.

Current order values far surpasses the highest values so far of a Billion RMB set in 2010/2011 .

And it is much higher than the avg RMB 680 million revenues set in 2008 period when the share price was over $2 ...


MIDAS is currently very undervalued .

MIDAS: CIMB thinks that Midas 60% market share plus strong track record poises it for a tremendous opportunity in China’s aggressive railway expansion plans. The Chinese Government plans to add 11,200 high-speed train cars and extend HSR railway by 18,000km by 2015, with expected RMB 2.09t -2.16t for spending 2013-15. Taking Midas’ 60% market share, possible wins could amount to Rmb 2.5b – 3.2b by end 2015. CIMB highlighted Midas’ competitive edge: 1) Close relationship with customers 2) Having the capabilities to produce a variety of extrusion profiles 3) strong track record of manufacturing quality products Midas is currently trading at 0.9x P/B, and CIMB thinks the discount is unjustified. The house thinks that Midas can win Rmb545m in next round of procurement, which will provide further re-rating catalyst for the stock. CIMB maintains O/PF with TP: $0.74 (unchanged)