Our analyst hosted Midas for a two-day roadshow in 
Hong Kong, and key concerns revolved around when the 
new high-speed train orders would be coming through. 
With China planning to double its high speed railway 
(HSR) network to 18,000km by end-2015 and lack of 
orders for rolling stock in the last two years, there is firm 
optimism that the newly-formed China Railway 
Corporation could be placing orders for new HSR rolling 
stock in the second half of 2013, which should lead to 
substantial contract wins for Midas. Meanwhile, the 
group has won a number of metro and overseas train 
contracts to boost its order book to Rmb650m, up from 
Rmb400m at the end of 2012. Maintain BUY with S$0.60 
target price. Midas is currently trading below 1x P/B, 
which we see as attractive for a stock that is due for an 
earnings recovery from 2H13 onwards. 


DBS Vickers