SINGAPORE (Dec 1): DBS Group Research is maintaining its “buy” call on Midas Holdings with a 49 cents target price as the research house sees a more substantial recovery for the company from 2016 onwards as contribution from its new aluminium plate and sheet plant kicks in.

In a Tuesday report, analyst Paul Yong says the completion of the alloy plate and sheet plant will raise the group’s capabilities by boosting Midas’ annual aluminium alloy production capacity from 50,000 tonnes in FY15 to 160,000 tonnes in FY16.

“It should help to diversify its revenues away from the rail segment as the new alloy plate and sheet products will also be in demand from the aviation, shipbuilding, automobile, general industry and packaging sectors,” says Yong.

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