Wednesday, August 21, 2013

Midas Holdings: Higher Utilisation Boosts Revenue (OSK)

Midas Holdings: Higher Utilisation Boosts Revenue
(BUY, SGD0.52, SGD0.75)

Midas recorded a surge in 2Q13 PATMI to CNY14.9m as orders started picking up. With the Chinese Government reaffirming its investment in railway infrastructure, there is a good chance of more order flows for Midas over the next few quarters. We also expect positive contribution from its associate NPRT to boost its FY13 earnings.

Maintain BUY, with TP of SGD0.75, based on 1.5x FY13F P/BV. 2Q13 revenue grew 29.2% y-o-y to CNY284.0m on the back of improving utilisation of its production lines. Despite the revenue growth, 2Q13 gross profit margin fell to 22.4%, from 31.5% in 2Q12, due to a change in product mix – it also supplied freight wagons, which are generally of lower margins. The CNY3.1m profit from its associate Nanjing SR Puzhen Rail Transport (NPRT) – compared with a CNY14.1m loss a year ago – pushed up its 2Q13 PATMI by eight-fold.


Orders picking up. Midas’ orderbook is now at CNY700m, while NPRT’s orderbook is at CNY9bn, with the bulk of deliveries scheduled for 2014 and 2015. Order flows are expected to increase going forward as China Railway Corp (CRC) has committed to speeding up rail investment. Of its planned CNY530bn investment for railway development in 2013, only a third had been completed so far, indicating the potential for more orders in 2H13.

CRC intends to buy locomotives, bullet trains and rolling stock. This would benefit China’s largest train makers CSR Corp and China CNR Corp. As the two are major customers of Midas, the company is likely to benefit from the spillover.

Higher revenue assumptions, maintains TP. With order flows starting to pick up, we reckon Midas should be able to record better capacity utilisation in FY13 than previously expected. Hence, we raise our revenue estimates to CNY912.0m. We are keeping our earnings estimates unchanged as we factor in higher operating expenses. Maintain BUY.



Source/Extract/Excerpts/来源/转贴/摘录: OSKResearch,
Publish date: 19/08/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock