Shares & Derivatives
Midas reports strong Q1-2014 with revenue higher by 46.7% and a net profit of RMB11.5mm compared to a loss of RMB5.7mn
By Kevin Scully-Financial Blog  •  May 12, 2014

Monday, 12 May, 2014 6:57 AM

Posted by Kevin Scully

 Midas reported a good set of Q1-2014 results with revenue rising 46% and a net profit of RMB11.8mn compared to a loss of RMB5.7mn.  The key change was the contribution from associates which reported a profit of RMB13.1mn compared to a loss of RMB4mn in Q1-2013.

Midas only started benefitting from the release of new high speed contracts in late 2013.  We expect this trend to continue as China increases its high speed train budget by 10-15%.  This should benefit Midas which has so far only announced two high speed contracts so far.

No major change in the my recommendation - I still like the stock but as PER valuations are already high, the share price is likely to hold current levels until more high speed contracts are announced.

Midas annual revenue crossed RMB1bn in 2013 but profit ...

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By Kevin Scully-Financial Blog
Kevin began his working life in the regional and economics division of the Ministry of Foreign Affairs. He then moved to the private sector analyzing equities before venturing out to start NRA Capital. After 25 years of watching stocks and living through financial disarray during the Pan Electric Crisis, the 1987 Crash, the Barings debacle, the Gulf War, Asian financial crisis - what can sub-prime do but add another scar to already bruised wounds. Ever since starting his blog, Kevin has been enthusiastically giving his personal views on the market. He discusses about equities, the market turmoil, and the broad economy.
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