Midas Holdings Limited (Midas) last Friday evening announced that based on the Board’s preliminary review of the unaudited management accounts for FY16, Midas expects to record a substantial increase by over 70% YoY in its FY16 PATMI. The increase was mainly attributable to the contribution from its new Aluminium Stretched Plates Division, which Midas acquired on 27 Jul 16.

Note that the profit alert is not based on any data or information that has been audited or reviewed by the Midas’ auditors. Pending FY16 results announcements tomorrow, maintain HOLD on Midas but place our FV of S$0.245 for Midas under review for now.

We will update accordingly after we get further clarity from management after its results announcement.

Source: OCBC Research - 27 Feb 2017