Midas

China Railway / Midas: Positive news flow continues, after China’s Ministry of Railways published very strong Sept spending data and increased its 2012 capex budget once again on 10 Oct12. MOR published its Sept investment data, this was up 93% YoY for the mth, with construction spending jumping by 111% to Rmb64b. MoM growth was 63% for construction and 30% for others (mainly equipment). Construction budget increased. MOR has once again increased its 2012 construction budget by 4% from Rmb496b to Rmb516b, as disclosed in its latest bond prospectus. This represents a 27% increase over the budget of Rmb406b at the start of the yr.
SCB see this as positive for both railway construction and equipment players and expect more positive catalysts for the sector to come in the form of new orders and further details on the MOR reforms and funding strategy. Advise investors to buy into the sector, with our top picks being CSR Corporation (CSR) for equipment and China Railway Construction Corporation (CRCC) for construction.

strange, Standard Chartered turning cold on Midas. Target only 35 cents.

nextinsight.net/index.php/target-prices

It all depends on who your "BOSS" is. You need to hv your own assessment. All the facts seemed quite obvious to me, with many favourable reports, amongst them from Kevin Scully and OCBC yesterday...
OCBC maintain BUY rating on Midas and raise fair value estimate from $0.435 to $0.51 in light of the brighter prospects in China’s railway sector. The latest data on total railway fixed asset investments (FAI) in China exhibited an encouraging 92.7% YoY surge to CNY72.7b for the month of Sep, which house believe highlights the progressive recovery in the sector. Another positive development came from the China Ministry of Railways’ (MOR) decision to raise its 2012 railway FAI target from CNY610b to CNY630b, having only previously done so in Sep. Moving forward, see further re-rating catalysts for Midas when China’s MOR resumes the re-tendering of new HSR passenger train car contracts in the near future and continued traction gains in Midas’ orders win momentum from the urban rail and power industries.

StanChart taget 35 cts base on x13 2013 PE. For S-Chip I will not pay more than x10 PE.

One is based on current while de others are based on forecasted income. For de latter, it depends on how the analysts perceive this income and whatever figures they want to use, depending on who their "boss" is. I'm agreeable to the earlier few assessments due to the spike in stimulus measures and infrastructures buildup by China. Think they hv no other choices but to focus on creating domestic demands. This is one stock I will hold on for some time. Just a personal opinion.

Midas: Over the weekend, China's Xinhua Agency reported that China National Devt and Reform Commission (NDRC) had called on the Govt to meet its railway investment target for 2012. For 2012, China has only invested about 68% of its planned RMB500b rail budget. On a medium term basis, the outlook is more promising - China planned to have 40,000km of high speed rails by 2015. As at Jul12, it has only constructed about 13,000km. A couple of problems have inhibited the roll-out leading to a possible delay in meeting their 40,000km target. The announcement by NDRC is another confirmation that the Chinese Govt will resume rail and rolling stock construction soon.
NRA note that while conservative investors would wait for the China Govt elections in early Nov to confirm the resumption of rail contracts, less conservative investors may consider accumulating Midas shares at the current level, as the news so far is pointing to a positive 2013. Deutsche expect more new railyway projects to start construction in 4Q. Note that 22 new railway projects will start construction in 2012, more than expected  According to the Economic Information Daily, 22 new railway projects will start construction in 2012 (vs. the original plan of nine new projects with Rmb162b total investment that the MoR announced at the beginning of 2012). There is no detailed information on the investment in the 22 new projects. This now is the second time ytd that the MoR has increased the number of new projects. In mid-Sept, based on MoF data, the number of newly-started railway projects was increased from nine to 19, including the Mengxi- Huazhong coal line. In addition, based on yesterday’s news, MoR has started making monthly checks on construction progress rather than quarterly ones, in order to fulfill the new recently-revised 2012 railway investment plan.
Overall, house still positive on the railway sector (especially constructors) due to the accelerating investment in railway infrastructure over the rest of this year and a better outlook for 2013. Potentially higher-than-expected subway spending might further support the sector. CRC and CRG are the biggest beneficiaries in the sector in the short term.