Midas Holdings

[sgd]

what I mentioned to you guys before abt CCP garmen willingness to divert resources regardless of high cost for national project and national pride

Source: Reuters

BEIJING, Nov 1 (Reuters) - China's cash-hungry Ministry of Railway is expected to receive at least 200 billion yuan ($30 billion) in fresh funds soon, the official Xinhua news agency reported on Tuesday.

Xinhua did not specify the source of the funding. But it made clear that the Chinese government has told banks and bond investors to support China's railway construction.

The ministry, China's largest bond issuer besides the treasury itself, sold 20 billion yuan of bonds last week. The issue was heavily subscribed, partly because Beijing has cut taxes for companies on interest earned from bonds issued by the railway ministry between 2011 and 2013.

CSR Corp Ltd, China's largest train maker, announced on Tuesday that it had received $944 million payment from the ministry, sending its stock up as much as 8 percent.

After a train crash that killed 40 people on July 23, a wave of criticism hit the ministry with banks and investors turning away from it.

As a result, construction on some 10,000 kilometers of railways was suspended, contractors and suppliers were left with a huge amount of accounts receivable, and many migrant workers were dismissed with unpaid wages.

Luo Renjian, a researcher with China's economic planning agency, was quoted by Xinhua as saying that railway projects were still regarded as key state investments.

'These projects relate to jobs of many migrant workers and business for suppliers,' Luo was quoted as saying. 'It's abnormal to have long delays or construction suspensions in railway projects on a massive scale.'

(Reporting by Zhou Xin and Nick Edwards; Editing by Ken Wills) Keywords: CHINA RAILWAY/FUNDING

[kng]

Just bought the share of this company at 39cent. It have been 9 months since the high speed train crash. The share price slowly climb up till 39.5cent today. Oil price is high, high speed train, MRT and LRT will still be the focus point in next few years in china. China have to face the fact that train service and nuclear power plant will still be the future trend. The accident shall not stop the train service in china.

[sgd]

You are right.

I went to Japan recently and experienced firsthand for myself the train system there and I tell you it is truly integrated. High speed bullet trains link cities and provinces, in the provinces they have city metro systems then rural areas like small towns they have smaller system. The whole of Japan is link by train system, you can travel from north to south there will be a train link somewhere to get you where you want to go in a matter of hours. Train travel is a way of life in Japan and cheaper than flying.

This is exactly what they want to do in China too, integrate provinces to cities to rural towns to link up resources and manpower if they manage to achieve it they will become a real economic powerhouse. We just starting to see much development in this area. It will happen whatever difficulties or obstacles they face to achieve that bigger picture in the end.

(vested)

[kng]

Agreed. American believe transport in the air due to their less density of population and share of oil control in the world. High density population like china, train service is the only way to go.

Although china is building airplane as well, i believe majority of the people will be more confident with china made train instead of airplane.

[RBM]

Interesting excerpt from a piece in the latest edition of The Edge Weekly, which talks positively regarding the prospects for Midas Holdings, following yesterday's and Thursday's Chinese Government infrastructure investment announcements.

QUOTE
Market looks to spillover from China stimulus

By Goola Warden
The Chinese government has announced a RMB 1 trillion ($ 196 billion) stimulus, targeting at infrastructure spending. According to Nomura Securities, the National Development and Reform Commission (NDRC) announced on Sept 7 that it has approved the construction of 13 highways from June to August. The total length is 1,976 kilometers. “We estimate the amount of total investment to be RMB 59 billion,” Nomura says. The NDRC also approved 13 other projects on water management and water transportation although no value was indicated. A day earlier on Thursday, also as part of the stimulus, the commission announced the approval for 25 subway lines in 20 cities, with a total investment of RMB 700 billion. “We think this is another sign that the government is pushing infrastructure investment aggressively,” Nomura says. “These signals suggest to us that policy action by the government is picking up speed. We expect fixed asset investment growth to rise in the coming months.”

So who benefits? “We are reinstating our buy recommendation on Midas Holdings after having downgraded it to hold in mid-July this year as we believe that the China government’s announcement yesterday means that it is a question of “when” and not “if” the two-year drought in high-margined high-speed rail contracts ends,” notes Lim & Tan in a research report. Midas’ 32.5%-owned associate company Nanjing SR Puzhen Rail Transport Co (NPRT) managed to clinch some RMB 3.25 million of contracts this year, bringing its order book to RMB 847 billion, to be delivered over the next three years. Since Midas is the preferred aluminium extrusion supplier to NPRT, the metro train contract wins will benefit Midas.

Separately, Midas is also winning contracts from the maiden power industry in China with RMB 123 million worth of new contracts announced earlier this week, increasing their order books by 21% to RMB723 million. According to Lim & Tan, Midas’ earnings is expected to rebound 133% in 2013 to RMB 182 million, translating to a prospective PE of 12 times, down from 2012’s 27 times.
UNQUOTE

Not Vested

[chialc]

there are equally bad news and good news..
however, after seeing it drop to 27 cents and bouncing back, I decided to plunge into Midas few weeks ago tikam tikam...

[csccc]

Midas has been rising to new high coupled with high volume, and breaking resistance at $0.44.
Looks good from the chart point of view...

[felixleong]

midas is a good bet if you are bullish on the china growth recovery

[LionFlyer]

midas is a good bet if you are bullish on the china growth recovery

betting on potential... is not something i am interested in. everyone can sell a good growth story.

[iff]

betting on potential... is not something i am interested in. everyone can sell a good growth story.

I'd agree with your view.