An analyst Dr NGO's recommendation :

Midas Holdings       BUY (TP: S$1.36)

Growth plans remain on track

Growth story remain intact; Maintain BUY. Midas Holdings announced a set of 4Q09 numbers that were inline with our expectations. With FY10 production capacity set to increase to cater to its huge order book, we continue to believe that the outlook for the company remains positive. Currently trading at 16.5x FY10F P/E, we believe that Midas should trade up to 22.4x FY10F P/E, which represents a 20% discount to its peers’ average of 28.0x FY10F P/E. Maintain BUY with unchanged TP of S$1.36.

Inline with our forecasts. Midas announced 4Q09 revenue at S$43.8m (+60.7% YoY, +18.4% QoQ) and net profit of S$10.2m (+20.7% YoY, +8.4% QoQ) – this was inline with our estimates as we were also expecting bottomline to arrive at S$10.2m as written in our earlier report. The proposed dividend of S$0.0025 also turned out to be the same as we had forecasted.

Earnings visibility remain solid. Our positive view on Midas stays unchanged as we continue to opine that FY10 is set to be a record year for the company with production capacity on its aluminium extrusion lines being ramped up. With a current order book of RMB1.3b while 32.5%-owned associate Nanjing SR Puzhen Rail Transport has an order book of no less than RMB6.0b, Midas therefore remains well on track to leverage on the public transportation infrastructural network in China where the PRC government is set to spend RMB823.5b in 2010, according to country’s Ministry of Railways.

No changes to our estimates. Given that the FY09 results have performed inline with our expectations, we therefore would not be altering our FY10 and FY11 numbers.

9/11

Tsunami

Bali Bombings

BiRD  FLU

Asia Financial Crisis

New Delhi Bombing

H1N1 

Mas Selamat DISapperance

World Financial  sUb-PRiME  Tsunami

ALL  these  went  absOlutely  wrOng.

and  nOw  they are  ALRiGHT.

 "tO  ERR  iS  hUman"