Midas has been consolidating below the 0.505 resistance level for about 2 weeks only to see it break above today on pretty high volume. Currently at TOP 20 Volume. Next resistance at 0.52 level which is also the high today and where there are a lot of sellers stacked there. From the chart, we can see that it has indeed broken above the channel resistance level (Downward sloping line beginning in Jan 2013) at 0.48 about 2 weeks ago and has managed to stay above it. As long as 0.500 is a support, a rise towards 0.52 and even 0.55 seems likely. A break above 0.52 would pave the way to 0.55 which was the high set in Mar 2013.
Stop loss at 0.485.
DBSV – 12 AUG 2013
OCBC – 9 JULY 2013
Midas Holdings: Seeking more contract wins
Midas Holdings (Midas) recently clinched a CNY44.3m metro contract, thus bringing total YTD order wins to ~CNY423.2m. Looking ahead, Midas will continue to strive for potential new metro and international railway contract wins of ~CNY380-580m for the rest of 2013. We are buoyed by the positive news flow happening in China’s metro industry, and see Midas as a key beneficiary given its track record as a supplier to major Chinese train manufacturers. However, the time frame for new high-speed railway train car tenders by the China Railway Corporation remains uncertain, although there is optimism that it could be resumed in 3Q13. Maintain our BUY rating and S$0.54 fair value estimate on Midas, pegged to 1.1x FY13F P/B.
Midas Holdings (Midas) recently clinched a CNY44.3m metro contract, thus bringing total YTD order wins to ~CNY423.2m. Looking ahead, Midas will continue to strive for potential new metro and international railway contract wins of ~CNY380-580m for the rest of 2013. We are buoyed by the positive news flow happening in China’s metro industry, and see Midas as a key beneficiary given its track record as a supplier to major Chinese train manufacturers. However, the time frame for new high-speed railway train car tenders by the China Railway Corporation remains uncertain, although there is optimism that it could be resumed in 3Q13. Maintain our BUY rating and S$0.54 fair value estimate on Midas, pegged to 1.1x FY13F P/B.
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