SINGAPORE (Jan 20): OCBC is keeping Midas Holdings at “hold” but cutting its fair value estimate to 30 cents from 33 cents, advising investors to wait for the company's diversification to start producing results.

OCBC notes that the aluminum extrusion products supplier to the railway industry is expanding into new business, including cold-rolled aluminium alloy plates and sheets.

“While we think diversification may be positive for Midas over the longer-term, we prefer to wait for stronger and consistent trend of contributions from these new businesses before reviewing our assumptions,” OCBC says after a visit to the company's plants in China.

As at 11.47am, Midas is down 5.56% at 25.5 cents, compared with a 2.61% fall in the benchmark Straits Times Index.