Midas whipped by 50.4% drop in operations profit

Net loss was also wider than expected.

According to OCBC Investment Research, Midas Holdings' profit from operations dipped 50.4% YoY to CNY18.9m. However, OCBC noted that on an operational basis, Midas was actually profitable.

Here's more:

In line with its profit guidance issued on 10 May, Midas Holdings reported a net loss attributable to shareholders of CNY4.9m in 1Q13, versus PATMI of CNY15.3m in 1Q12.

Revenue fell 12.1% YoY to CNY202.4m. While we had expected Midas to report a loss-making quarter, the magnitude was larger than our forecast for a net loss of CNY3.2m.

However, revenue was within our CNY199.8m estimate. The below expectations bottomline performance was due partially to weaker-than-estimated gross margin and largely attributed to a wider share of loss of CNY4.0m from its associated company, Nanjing SR Puzhen Rail Transport (OIR forecast: share of loss of CNY0.8m).