Midas

Midas: OCBC maintains Buy and lifts TP to $0.60 from $0.50. HOuse view Midas as a proxy play to the economic recovery story of China in 2013, which would be driven in part by rising urbanisation and railway investments. The latter could amount to Rmb600-650b, according to media reports. Believe that China’s Ministry of Railways could resume high-speed passenger train car contract tenders in 1Q13. House expect this to translate into order wins for Midas from its customers in 1H13, with deliveries possibly happening from 2H13. Despite Midas’ recent share price surge, believe that more upside potential exists. This is premised on the improved optimism of the industry recovery prospects, which has led to a sector re-rating.