Stock Buy Call: Midas with fair value of 1.11 sgd by DBS Equity Research!

DBS Equity Research has initiated coverage of Midas Holdings Ltd with a "buy" rating and a fair value of 1.11 sgd per share. "As the dominant supplier of aluminum alloy extrusion profiles to major train manufacturers in China, Midas is well positioned to ride the expected robust demand for trains in China," DBS said in a note to clients. "Furthermore, the group has recently gained a foothold into China's highly regulated train manufacturing industry, which is entering into a period of high growth," DBS said. DBS expects Midas' net profit to grow from 18.30 mln sgd last year to 28 mln this year, and further to 46.7 mln next year and to 66.0 mln in 2008. Growth will be supported by China's rail network expansion plans, in which the government intends to invest 240 bln usd over the next 10-15 years. At 9.43 am, Midas was up 0.015 sgd or 1.74 pct at 0.875 with 1.21 mln shares exchanged.