Latest Forum Topics / Midas Last:0.192 -- | Post Reply |
Target Price 0.90?
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enghou
Senior |
22-Dec-2010 17:01
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Nomura recommends BUY with Target Price at $1.08 Action Post our visit to Midas’ Jilin plant, we remain optimistic on the ramping up of its new aluminium extrusion lines. We expect its FY11 revenue and earnings growth to be driven by the capacity expansion in 2010, as unfinished contracts in hand is still sufficient to spur growth. Furthermore, we expect the new plant in Henan to come on line by FY12, which we believe will provide growth potential to the company. Maintain BUY and PT at $1.08 unchanged, based on 15x FY11F P/E. Catalysts Possible upward revision of railway target in China’s 12th Five-Year Plan, more aggressive metro plans, and breaking into the global market. Anchor themes We remain long-term positive on rolling stock, thanks to ongoing exponential growth in high-speed trains, demand arising from subway, and export opportunities. On the right track Ramping up of new extrusion lines on track With over RMB1.5bn or S$300mn unfinished contracts in hand, revenue and earnings estimate of Midas mostly rely on how fast it can ramp up the utilisation rate at its newly added three extrusion lines. 3Q results announced in mid-November show that we may be a bit aggressive on the heating up of new lines. However, following our visit to the Jilin plant, we believe Midas is on track to ramp up the new lines, especially the 110MN one, and we remain optimistic on its FY11 utilisation rate. New plant in Central China to be built by FY12 Midas announced its plan, in late November, to set up a new plant with three extrusion lines in Luoyang, Henan province. As Henan is one of the most populous provinces in China, located in Central China with convenient transport connections to Eastern and Southern China, we believe this plant will better serve CSR’s plants in Nanjing, Zhuzhou and potential plants of CSR in Jiangmen and Luoyang. As local government in Henan is seeking investment in high-end manufacturing, we believe its policies including land and taxation should be favourable to Midas. Maintain Buy; PT of $1.08 unchanged We revise down our FY10 earnings estimate by 7.7% to reflect the process needed to fully ramp up the new lines, but have revised up our FY11 earnings estimate by 2.6% to incorporate the better-thanexpected profitability of Nanjing Puzhen. We remain optimistic on Midas and maintain our Buy rating. Our price target of $1.08 is unchanged, based on applying 15x target multiple on our FY11 EPS estimate. Risks to our call include overcapacity of the industry in the long term, any changes in government policy, and price pressure from customers. Life Is Great |
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Hulumas
Supreme |
22-Dec-2010 15:05
Yells: "INVEST but not TRADE please!" |
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Simply because what we commonly and mostly invested counters are not STI index's counter. So our counter price movement is mostly having negative correlation to what STI index value reflected!
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Bluevaio
Senior |
22-Dec-2010 14:53
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Stanby to buy more
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rickyw
Master |
22-Dec-2010 14:49
Yells: "keep happy..." |
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next support 0.92, if broken then next support 0.835 actually, does market up or down ya? why i fell market down even index up...
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Hulumas
Supreme |
22-Dec-2010 14:32
Yells: "INVEST but not TRADE please!" |
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I am waiting for that too!
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Hulumas
Supreme |
02-Dec-2010 09:51
Yells: "INVEST but not TRADE please!" |
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Just to bad, target price of Sgd. 0.90 won't reached! >Sgd.1.90 by next year most likely!
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abc2xyz
Senior |
12-Nov-2009 09:49
Yells: "A stock sucker always enriches the market makers" |
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Tomorrow or at latest next week, you wd possibily see it.
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jasonfaxingliu
Senior |
12-Nov-2009 09:47
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Seem to hover around and wonder when will be the 0.9 target price realise? | ||||
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