Midas Holdings (Midas) has had a good start to 2010, clinching numerous contracts worth a total of RMB 413.6m since the start of the year.These contracts bring the group’s order book to approximately RMB1.6b, and will boost revenue from FY10 to FY15. On top of a continued slew of order wins, we foresee that the group’s potential Hong Kong listing could serve as an additional catalyst for the stock. We remain positive on the group’s growth strategy, driven by capacity expansion amid overwhelming industry demand, and raise our valuation peg to its historical average of 25x (previously 20x). This raises our fair value estimate to S$1.30 (from S$1.05). We view recent share price weakness as opportunities to accumulate and maintain our BUY rating on Midas.