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CIMB Research raised its target price for Midas Holdings , which supplies components for train projects, to S$0.59 from S$0.53 and kept its 'outperform' rating, as its recent contract win reflects strong orders for the railway industry going forward.
At 0214 GMT, Midas shares were up 1 percent at S$0.525, and have gained 25 percent since the start of the year, compared to a 1.8 percent rise in the FTSE ST All Share Index.
Midas's 32.5 percent-owned associate Nanjing SR Puzhen Rail Transport Co. Ltd (NPRT) won a tram contract worth 338 million yuan ($54.37 million), adding to NPRT's order book of 9 billion yuan, CIMB said.
"This lends credence to our expectations of positive order flow momentum and could signify back-to-back contract win announcements and further re-rating potential," said CIMB, adding that major clients have restarted negotiations with key suppliers.