MIDAS announced another piece of good news today. JV company wins a RMB 1.05 billion contract to supply 21 train set. The repeated and frequent contract win is a major endorsement on the company capability and further enhance the company status as key train/aluminium product company in China.
The recent incident of heavy snow delaying CNY return home crowd, has again highlighted the need for more investment to move the people efficiently. They are planning for more high speed track and more connectivity.
I remain invested in the company provided the strong fundamental. I have also mentioned before that the China railway play is a strong and long running theme which could be less affected by the economy cycle. Follow the recent market downturn, the share has held up relatively well. At the current price of 1.4, it still trade at forward 08 PE of 18. This has somewhat proves that given the strong fundamental, market still willing to pay more.
Compare to other battered china play which trade at 5 or 6 PE, this stock is some what a different class. Time for accumulation, maybe, depends on your view. All I can say is the more price fall, the lesser risk you have on a stock.
Tuesday, 29 January 2008
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