Brokers' take

Midas Holdings | Buy

May 19 close: S$0.38

Target price: S$0.49

DBS Group Research, May 19

Midas announced that it has won 328.9 million yuan (S$70.6 million) worth of contracts for delivery of high speed train car body components in 2015. This can be broken down into

1) 185.4 million yuan worth of contracts awarded by CNR Changchun; and 2) 143.5 million yuan worth of orders by CNR Tangshan. These are specifically for the supply of aluminium alloy extrusion profiles and fabricated parts for high speed trains.

The news is positive and significant for the company for two key reasons: 1) order book of 1.04 billion yuan as at end Q1 2015 is lifted to nearly 1.4 billion yuan, and provides confidence of earnings recovery in 2015; and

2) re-assures investors that Midas can continue to win substantial contracts even from a soon-to-be-merged China CSR-CNR Group.

Genting Singapore | Underperform

May 19 close: S$0.945

Target price: S$0.75

Macquarie Research, May 18

The Street seems to have perceived Genting's extremely poor Q1 2015 results as only a stumble and downgraded consensus estimates by only 10 per cent for 2015-17. Despite Genting's management's extremely negative outlook guidance, we believe the Street is still reluctant to accept reality.We estimate that Genting's 2015E profits will be only 35 per cent of what it achieved in its first full year in 2011 (S$1 billion).

Genting ended 2014 with "outstanding credit to VIP players" at S$865 million, of which S$424 million was more than six months overdue. Thus, we expect bad debt provisioning to increase and estimate that Genting's VIP business will run into losses in 2015 and 2016.

Mapletree Commercial Trust | Hold

May 19 close: S$1.545

Target price: S$1.54

CIMB Research, May 18

VivoCity still a well-run mall. VivoCity makes up 57 per cent of Mapletree Commercial Trust's (MCT) assets and 64 per cent of MCT's net property income. We like management's continuous efforts to improve shopper traffic and tenant sales of the mall through asset enhancement initiatives (AEI), tenant remixing and events. While we believe the mall has largely stabilised and its rental reversion should be closer to peers, it should be able to weather the weak retail environment given good management and location.

We upgrade MCT from Reduce to Hold on more palatable valuations.

Compiled by Jamie Lee

Disclaimer: All analyses, recommendations and other information herein are published for general information. Readers should not rely solely on the information published and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

Brokers who wish to send in their reports can e-mail us at btnews@sph.com.sg