Good Midas did announce contract before Q3 contract. Its a mid-size contract and we need more contracts :)

These few days you will see midas surge but my suggestion is do not keep it over this weekend. 

of course i know u didnt sell. just TCSS. 

Patience, faith in the FA n TA does have its virtues n ignore all those daily distracting noises of "BB this n BB tat" n those irritating "1 lotter stupid game while the bull is dozing, all these mice comes out to play while the cat is away, I m sure all these mice will go into hiding tomoro liow".

I had been posting almost everyday the below writeup from Kim Eng:

Midas – Company update (James KOH 64321431)

Previous day closing price: $0.865


Recommendation: Buy (maintained)


Target price: $1.15 (Previously $0.985)

Still packing the theatre

We recently hosted a roadshow for Midas in the US, which was very well-received by funds.

The exciting growth prospects within the China rail infrastructure space continue to capture the
imagination, with the main discussion points being the competition within this space, the sustainability of growth for Midas and the progression on expansion.

A smaller share of the bigger pie

While Midas still holds a clear lead in terms of certification and track record,
management expects competition to intensify, with listed peers such as Shandong Nanshan (Shanghai) and Zhongwang (HK) stating their intentions to break into this market.

Going forward, they believe achieving a lower 50-60% market share of this growing pie would be a more reasonable target, which will still ensure strong growth.

Life after trains

Improving the rail infrastructure network is an important government initiative, with current directives providing clear visibility over the next 2-3 years. Even subsequent to the stimulus package, we expect this program to continue.

Over the longer term, management will look into other feasible, promising industries such as aviation to continue its growth.

Progress on the installation of 4th and 5th extrusion lines

We now expect the 4th and 5th extrusion lines to come on stream by 2Q09 and 4Q09, earlier than our earlier estimates.

Our model factors in Midas winning a 50%-60% market share of the upcoming round of orders, which is twice the size of the first round. This will already keep all its five extrusion lines busy at about 75% utilisation.

Much more tracks to run

We adjust our earnings to take into account higher effective capacity in FY10 and higher tax rates in FY11.

We now peg our target price to 20X FY10E.

We believe the Chinese rail industry is still at its early-mid cycle.

With the Ministry of Railway due to announce the 2nd round of high-speed train orders, we expect orders to flow down to Midas within 3-4 months

I had been posting almost everyday the below writeup from OCBC Investment Research:

Midas's firm order book of 1.4 billion yuan (S$296 million),  more anticipated contract wins in Sept - Nov 2009... will serve to under-gird valuations"