CIMB Research raised its target price for Midas Holdings Ltd , which supplies components for railway projects, to S$0.63 from S$0.41 and kept its 'outperform' rating, citing expectations of more high-speed rail contract wins.
At 0126 GMT, Midas shares were up 1.2 percent at S$0.425. They have gained 28.8 percent since the start of the year, outperforming the FTSE ST China Index's 0.5 percent rise.
CSR Corp Ltd, China's state-owned locomotive manufacturer, expects to see high-speed contracts by the end of this year or the first quarter of 2013, which will benefit Midas, CIMB said.
Midas also has a strong balance sheet, relying on short-term loans and receivable securitisation to fund its working capital, the brokerage said.
Although Midas will be entering a capital-intensive phase when it starts construction of a new production facility, CIMB said its balance sheet offers some buffer in any prolonged order drought or liquidity shortage.
(Reporting by Charmian Kok in Singapore; firstname.lastname@example.org) Editing by Prateek Chatterjee
Keywords: MARKETS SINGAPORE STOCKSNEWS/MIDAS