Brokers' take

Midas Holdings | HOLD Target price: S$0.225 Aug 16 close: S$0.21 OCBC Investment Research, Aug 16

Midas Holdings Limited's Q2 17 revenue jumped 32.1 per cent year on year to 505.6 million yuan (S$103.3 million), mainly due to the consolidation of results of its recently acquired business and higher business volume at its core business. Coupled with a 43.5 per cent year-on-year decline in income tax and improvement in margins, Q2 17 Patmi (profit after tax and minority interests) surged 197.1 per cent to 55.5 million yuan. For H1 17, Patmi jumped 193.8 per cent year on year to 84.3 million yuan, forming 79.3 per cent of our FY17 forecast. Looking ahead, we expect core business to pick up on higher orders but forecast overall GPM (gross profit margin) to fall to around 28-29 per cent with full-year contributions from its Aluminium Alloy Stretched Plates business.

Singapore Medical Group | BUY Target price: S$0.79 Aug 16 close: S$0.63 RHB, Aug 16