Stock Name: MIDAS
Company Name: MIDAS HLDGS LIMITED
Research House: DMG
DMG & Partners Securities in an Apr 14 research report says: "Midas share price is down 14% YTD on policy risks overhang following a change of top official at Ministry of Railways. Recent contract wins by its customers namely CNR and CSR, totaling >RMB6 billion since March 2011, should help to alleviate such concerns.
"However, as the company has disclosed only RMB166 million of new orders YTD, we see downside risks to our previous revenue estimates. We revise our FY2011 and FY2012 extrusion revenue forecasts down by 11% and 19% to RMB1.2 billion and RMB1.5 billion, 100% and 10% backed by announced orders respectively.
"We now expect FY2011 and FY2012 net profit to come in at $66 million and $80 million, which are both 5% below consensus. Our new derived target price of 98 cents is pegged to 18x FY11 P/E to reflect lower earnings visibility into FY2012. MAINTAIN BUY."
Company Name: MIDAS HLDGS LIMITED
Research House: DMG
DMG & Partners Securities in an Apr 14 research report says: "Midas share price is down 14% YTD on policy risks overhang following a change of top official at Ministry of Railways. Recent contract wins by its customers namely CNR and CSR, totaling >RMB6 billion since March 2011, should help to alleviate such concerns.
"However, as the company has disclosed only RMB166 million of new orders YTD, we see downside risks to our previous revenue estimates. We revise our FY2011 and FY2012 extrusion revenue forecasts down by 11% and 19% to RMB1.2 billion and RMB1.5 billion, 100% and 10% backed by announced orders respectively.
"We now expect FY2011 and FY2012 net profit to come in at $66 million and $80 million, which are both 5% below consensus. Our new derived target price of 98 cents is pegged to 18x FY11 P/E to reflect lower earnings visibility into FY2012. MAINTAIN BUY."
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