Published July 7, 2009

Midas wins more deals, including 2 in Middle East

Total of four contracts worth 86m yuan

By LYNETTE KHOO

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THE contract winning streak continues for Midas Holdings, with the China-based group bagging four new deals worth 86 million yuan (S$18 million), two of which mark its forays into the Middle East.

The deals will have positive impact on group financials between H2 of 2009 and 2011.

The mainboard-listed company said the two Middle Eastern contracts are worth 54 million yuan. The first deal, valued at 27 million yuan, is for the supply of aluminium alloy extrusion profiles for 17 train sets or 204 train cars for the Saudi Arabia Metro project, to be fulfilled between the second half of this year and the first half of 2011.

The second contract, also worth 27 million yuan, is for the Iran Metro project. This involves supply of profiles for 20 train sets or 140 train cars, for fulfilment for fulfilment between the second half of 2009 and 2011.

'Having made our beachhead into the Middle East region, we will continue to build on our strong track record to capitalise on the burgeoning opportunities opening up in the PRC and overseas markets,' said Midas' chief executive Patrick Chew.

Both the contracts were awarded by CNR Changchun Railway Vehicles Co Ltd.

The third contract, also from Changchun Railway, is for the Changchun Light Rail project in China. Valued at 6 million yuan, it involves the supply of profiles for 40 train cars between the second half of 2009 and 2010.

The fourth contract, worth 26 million yuan, came from CSR Zhuzhou Electric Locomotive Co Ltd and is for the supply of extrusion profiles for 20 train sets or 120 train cars between the second half of 2009 and 2010. This supply is for the Guangzhou Line 3 Airport Line project.

These four deals will have a positive impact on the group's financials between the second half of 2009 and 2011, Midas said.

Yesterday, Midas shares dipped 1.9 per cent or 1.5 cents to 79 cents. The stock is still up 16 per cent from three weeks ago, thanks to the contract winning streak.

The latest contracts brought the orders the group had won since June to one trillion yuan, raising Midas' total order book to some $334 million. The contracts that have been rolling in for Midas have prompted 'buy' calls by DMG & Partners Securities and OCBC Investment Research.

Besides its core business in aluminium alloy extrusion profiles under the division, Jilin Midas Aluminium Industries Co Ltd, Midas holds a 32.5 per cent stake in a Sino-foreign joint venture, Nanjing SR Puzhen Rail Transport Co Ltd, to make and sell metro trains, bogies and their related parts.