May 31, 2012 / 3:19 AM / 7 years ago

STOCKS NEWS SINGAPORE-Maybank Kim Eng cuts Midas target price

Maybank Kim Eng lowered its target price on Singapore-listed Midas Holdings Ltd to S$0.32 from S$0.41 and kept its hold rating on the stock, citing concerns about its book value.

Shares of Midas fell 1.6 percent to S$0.30 and have lost 9 percent so far this year, compared to a 0.2 percent drop for the FT ST China Index.

The company, which supplies aluminum components to trains in China, posted a 75 percent fall in its first-quarter net profit to 15.3 million yuan ($2.41 million). Current book value is 49 cents a share, and is trading at 0.6 times the its price-to-book ratio.

“We believe there is no longer any earnings visibility for Midas,” said Maybank in a report.

The broker expects Midas to post poor earnings as a slowdown in the supply chain casts uncertainty on the delivery schedule for its order book worth about 650 million yuan.

However, Midas’ cash position of 671 million yuan should tide it till next year, even if no further bank credit is given, said Maybank.

For Midas’ first-quarter results, click

($1 = 6.3577 Chinese yuan)

1042 (0242 GMT)

(Reporting by Leonard How in Singapore; leonard.how@thomsonreuters.com)

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10:16 STOCKS NEWS SINGAPORE-CIMB cuts Yangzijiang target price

CIMB Research cut its target price for China’s Yangzijiang Shipbuilding (Holdings) Ltd shares to S$1.30 from S$1.43 and kept its outperform rating, citing increased risk aversion triggered by the euro zone’s debt woes.

Yangzijiang shares were 1.4 percent lower at S$1.025, and have gained about 12 percent so far this year, compared with the FT ST China Index’s 0.3 percent gain in the same period.

CIMB said that the 13.6 percent plunge in Yangzijiang in May was unwarranted and the shares are oversold, trading at 1.2 times price-to-book value.

“With no news of order cancellations, we foresee a rapid recovery in its share price if and when euro zone concerns dissipate,” CIMB said in a report.

Yangzijiang’s entry into rig building could be easier than that of other Chinese shipbuilders such as COSCO Corp Singapore Ltd and JES International Holdings, due to its strong track record, the broker said.

0931 (0131 GMT)

(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)

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8:43 STOCKS NEWS SINGAPORE-Index futures down 0.5 pct

Singapore index futures were down 0.5 percent, signalling a lower start for the benchmark Straits Times Index .

Asian shares, the euro and oil prices fell on Thursday as surging borrowing costs in troubled Spain heightened fears that more countries in the euro zone will be hit hard by the regions’ debt crisis.

Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com $1 = 6.3577 Chinese yuan

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