Midas Holdings reported a 66.3% YoY jump in its 4Q13 revenue to CNY360.1m and a 24.7% increase in PATMI to CNY21.3m, such that FY13 revenue and PATMI rose 32.0% and 71.3% to CNY1,147.6m and CNY47.7m, respectively. Although topline was within our expectations (0.8% above our forecast), PATMI missed by 7.3% due largely to lowerthan-estimated share of profits from its associate Nanjing SR Puzhen Rail Transport (NPRT) and larger-than-expected operating expenses. A final DPS of 0.25 S cent was declared, bringing full-year dividends to 0.5 S cent/share, similar to FY12 and our forecast. Looking ahead, Midas remains optimistic on the outlook of China’s rail transport sector over the mid-to-long term. We will provide more details after speaking with management. Maintain BUY on Midas, but our S$0.67 fair value estimate is under review.

Source: OCBC Research - 3 Mar 2014