For many years, it seems that Midas had always wanted to break into the Chinese aviation industry - maybe finally this is the game-changer that can push Midas to its deserved glory !!
I hope my sweet dream $0.50 & above will come through so I can have A Merry X'mas & Happy New Year .
RATIONALE FOR THE PROPOSED ACQUISITION
The Directors believe that the Proposed Acquisition offers an opportunity for the Group to
acquire a profitable business and further expand its core business, which will enable the
Group to strengthen its position in its current market. When completed, the Proposed
Acquisition will enable the Group to achieve its corporate objectives in the following areas:
(a) Diversify its range of products and services
Following the Completion of the Proposed Acquisition, the Group's range of products
and services will be expanded to include aluminium alloy stretched plates and hot-
rolled aluminium alloy plates and coils in addition to its current aluminium alloy
extrusion and cold-rolled plates and sheets product offerings. This will allow the Group
to provide a wider range of products and services to its customers and diversify its
offerings.
(b) Expand its customer base and allow it entry into new industries and sectors
The Group's customer base currently comprises players in the infrastructure and rail
transport sectors, with a focus on PRC and major global train manufacturers, while Dalian Huicheng's customer base comprises customers in the aviation, aerospace, rail
transportation, marine, automotive and petrochemical industries. It is expected that
following the Completion of the Proposed Acquisition, the Group will be able to benefit
from cross-selling opportunities, with the Group now having access to and being able
to tap on Dalian Huicheng's connections in new industries and sectors.
(c) Vertical integration so as to achieve synergies
The Completion of the Proposed Acquisition will allow the Group to harness synergies.
Our aluminium alloy cold-rolling plant in Liaoyuan City, Jilin Province, People's
Republic of China is expected to commence commercial production in 2016. The raw
materials used for production in our aluminium alloy cold-rolling plant are hot-rolled
aluminium alloy plates and coils, which we currently purchase from third-party
suppliers. The completion of the Proposed Acquisition will allow us to achieve
synergies as we could potentially source from Dalian Huicheng hot-rolled aluminium
alloy plates and coils where we would foreseeably be better positioned to maintain
quality controls and standards.
PROPOSED ACQUISITION OF THE ENTIRE ISSUED SHARE CAPITAL
OF HUICHENG CAPITAL LIMITED
The Board of Directors (the " Board" ) of Midas Holdings Limited (the " Company" ) wishes to announce that the Company had, on 30 November 2015, entered into a conditional sale and purchase agreement (the " S & P Agreement" ) with Chen Wei Ping, Chen Chen, Tang Tianrui, Yang Tianying, Yang Xiaoguang, Tan Poh Kuan Linda and He Qingzhi (collectively, the " Vendors" , and each, a " Vendor" ) to acquire the entire issued share capital of Huicheng Capital Limited ( the " Target" ) from the Vendors for an aggregate consideration of up to S $ 264 million (the " Consideration" ) (the " Proposed Acquisition" ).
So what' s the announcement? The SGX website says " possible investment"
Wonder why halt trading whole day to announce in evening?
Reuters) - Deutsche Bahn will open a procurement bureau in the Chinese city of Shanghai next week as it seeks to expand its range of international suppliers, it said on Tuesday.
The move will increase competition for existing suppliers Alstom, Siemens and Bombardier, which command a large share of the German rail operator's 10 billion-euro ($10.7 billion) annual budget for upgrades.
"We are looking for suppliers worldwide," said Deutsche Bahn's procurement chief Uwe Guenther.
China plans to invest a total of at least 2.8 trillion yuan (USD 438 billion) in railway construction during the 13th Five-Year Plan period (2016-2020) making it a stimulus to halt the slowdown of the economy.
National railway network will grow by more than 23,000 kms over the next five years, with intercity projects and ones in Midwest regions being priority, China?s Economic Information Daily reported.
Seem to be good news.....pending the annoucement of a major investment....:))
Trading Halt ......
Trading Halt ......
Thanks all for sharing and indeed these are good advices. I was curious and tried to queue for add more $0.305 a few times but did not managed to get any...it always preclosed at $0.305 and open next day at $0.31/0.315 somehow the accumulation were very strong..perhaps shd wait and see how next...?
Bro, my sincere advice.. I am not vested, just a neutral..Midas = S-chip... enough said.... If u want peaceful night when u sleep, I think think twice ba...
Cheers..
The hard truth is even though the profit increased 8-fold, the previous corresponding qtr profit was very, very marginal (I' d put it bluntly as very koyak). So, even though the result looks impressive, measured in EPS terms, it' s only < 0.3c a share, abt the same amt as the div they are giving us. Qn is if profits continues to be this dismal, will such dividends be sustainable going forward? N, yes, they' ve just won 4 supply contracts. But what' s the contract value - 16 mil SGD. What net profit margin can we factor in? If we use the 3Q net margin as a guide, it' d be < 4%. In other words, the net profit from the 4 contracts wld likely be around 640k SGD, can' t be much higher. N dividing that by 1,217,618,000 shares what wld the eps be? An extremely paltry 0.05c SGD. Now, let' s add the 800 mil RMB contracts Midas has won in 2015. How much net profit wld that translate into? Abt 6.5 mil SGD. So, the total net profit to be expected from the 2015 contract wins so far wld probably be no more than 7.5 mil SGD. In EPS terms, it works out to no more than 0.62c SGD. With this kind of profitability, how much div wld we expect going forward? Probably no more than 0.25c, or even lower. Of course, compared to a lot of other coys, it is still likely to remain profitable n, going by track record, wld continue to pay div. But qn we shd be asking ourselves is - how high can the share px run, n are there no other more attractive coys to put our $$$ into? DYODD of course, n for those who feel it' s worth sticking with Midas, good luck. I' m not saying I' ll disregard Midas altogether. I' d consider longing if, in my view, the contract wins n/or net profit margins become much better. Cheers.
the main shareholder used to be a singaporean.
Think he is. Someone told me he lives in a luxurious bungalow here. Another family member runs another listed coy here which, if I remember correctly, seemed to have run into some trouble over the last few yrs. Whatever the case, Brother Koh' s advice is well taken. This Midas might not be as great as some of us might think.
Substantial Shareholders
Number of shares held
Percent of shares heldChen, Wei Ping
131,405,200
10.79%Chew, Hwa Kwang
121,711,800
10%Dimensional Fund Advisors LP
46,972,100
3.86%OCBC Securities Private Limited, Securities Arm
25,954,000
2.13%Phillip Capital Management (S) Ltd.
15,663,600
1.29%I may be wrong but isn' t the CEO Chew Hwa Kwang a Singaporean?
Think he is. Someone told me he lives in a luxurious bungalow here. Another family member runs another listed coy here which, if I remember correctly, seemed to have run into some trouble over the last few yrs. Whatever the case, Brother Koh' s advice is well taken. This Midas might not be as great as some of us might think.
Substantial Shareholders
Number of shares held
Percent of shares heldChen, Wei Ping
131,405,200
10.79%Chew, Hwa Kwang
121,711,800
10%Dimensional Fund Advisors LP
46,972,100
3.86%OCBC Securities Private Limited, Securities Arm
25,954,000
2.13%Phillip Capital Management (S) Ltd.
15,663,600
1.29%I may be wrong but isn' t the CEO Chew Hwa Kwang a Singaporean?
| Substantial Shareholders | Number of shares held | Percent of shares held |
| Chen, Wei Ping | 131,405,200 | 10.79% |
| Chew, Hwa Kwang | 121,711,800 | 10% |
| Dimensional Fund Advisors LP | 46,972,100 | 3.86% |
| OCBC Securities Private Limited, Securities Arm | 25,954,000 | 2.13% |
| Phillip Capital Management (S) Ltd. | 15,663,600 | 1.29% |
I may be wrong but isn' t the CEO Chew Hwa Kwang a Singaporean?
Bro, my sincere advice.. I am not vested, just a neutral..
Midas = S-chip... enough said.... If u want peaceful night when u sleep, I think think twice ba...
Cheers..
The hard truth is even though the profit increased 8-fold, the previous corresponding qtr profit was very, very marginal (I' d put it bluntly as very koyak). So, even though the result looks impressive, measured in EPS terms, it' s only < 0.3c a share, abt the same amt as the div they are giving us. Qn is if profits continues to be this dismal, will such dividends be sustainable going forward? N, yes, they' ve just won 4 supply contracts. But what' s the contract value - 16 mil SGD. What net profit margin can we factor in? If we use the 3Q net margin as a guide, it' d be < 4%. In other words, the net profit from the 4 contracts wld likely be around 640k SGD, can' t be much higher. N dividing that by 1,217,618,000 shares what wld the eps be? An extremely paltry 0.05c SGD. Now, let' s add the 800 mil RMB contracts Midas has won in 2015. How much net profit wld that translate into? Abt 6.5 mil SGD. So, the total net profit to be expected from the 2015 contract wins so far wld probably be no more than 7.5 mil SGD. In EPS terms, it works out to no more than 0.62c SGD. With this kind of profitability, how much div wld we expect going forward? Probably no more than 0.25c, or even lower. Of course, compared to a lot of other coys, it is still likely to remain profitable n, going by track record, wld continue to pay div. But qn we shd be asking ourselves is - how high can the share px run, n are there no other more attractive coys to put our $$$ into? DYODD of course, n for those who feel it' s worth sticking with Midas, good luck. I' m not saying I' ll disregard Midas altogether. I' d consider longing if, in my view, the contract wins n/or net profit margins become much better. Cheers.
Thanks for your advise, actually I do not understad what happen? also the 3Q result was very impressive?
