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.

Published July 7, 2009

Wilmar confirms China plans

By CHEW XIANG

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PALM oil giant Wilmar International yesterday confirmed media reports that it had hired three investment banks to 'evaluate' the feasibility of listing part of its China operations in Hong Kong but cautioned that there was no certainty that proposals would be carried out.

Mr Kuok: had said in May that a China issue could raise US$3-4 billion

Reuters news agency said on Friday, quoting unnamed sources with 'direct knowledge of the matter', that Wilmar hired BOC International, Goldman Sachs and Morgan Stanley to handle the offering, which could happen late this year or early next year. The sources said Wilmar could raise US$3 billion.

Investors piled into the stock yesterday, sending Wilmar up 22 cents or 4.4 per cent to $5.23 on volume of 11.8 million units. It traded as high as $5.26.

Yesterday, Wilmar confirmed that it had shortlisted units of the three named banks to evaluate a possible listing but said valuations are subject to many factors, including prevailing stock market conditions.

'As the proposed listing is still at an evaluation stage, shareholders are advised to exercise caution in trading their shares. There is no certainty or assurance as at the date of this announcement that the listing proposal and other related transactions (if any) will be carried out,' Wilmar said.

Chief executive officer Kuok Khoon Hong said in May that the company planned to spin off 20 to 30 per cent of its China business - where it holds a strong position in the consumer cooking oils market - in order to unlock shareholder value. Mr Kuok said then that a listing could raise US$3 billion to US$4 billion if the company was valued at 25 times earnings.

Published July 7, 2009

Ong Beng Seng gets the prancing horse with Ferrari deal

Much talked about battle for Italian car marque finally over

By SAMUEL EE

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(SINGAPORE) It is confirmed - Ital Auto, a wholly-owned subsidiary of Komoco Motors, has been picked as the new importer of Ferrari in Singapore.

Mr Ong: set up Ital Auto with Metro boss Jopie Ong to bid for the dealership

The Shanghai-based Ferrari Asia Pacific regional office is said to have sent Ital Auto a letter of offer yesterday afternoon.

Subject to agreement, it will bring to a close a much talked-about race among half a dozen competitors who have been ardently wooing the Italian super sports car brand for more than six months.

Ital Auto was set up earlier this year by hotelier Ong Beng Seng and his good friend and long-time business partner, Metro Holdings group managing director Jopie Ong, to bid for the Ferrari dealership.

After beating a field of high-end car distributors and wealthy businessmen, it appears certain that Messrs Ong and Ong will accept the offer to represent the exclusive Italian marque.

If they do so, Ital Auto is expected to appoint Komoco Motors managing director Teo Hock Seng as the dealer principal. In turn, Mr Teo will likely have to hire a general manager to look after the day-to-day operations.

When that happens, the prancing horse will join an existing stable of automotive marques - Harley Davidson, Chrysler, Jeep, Dodge and Hyundai.

The Ferrari showroom is expected to be housed at the spacious Komoco Motors building on 253 Alexandra Road. It is understood that the entire facade facing Leng Kee Road will be devoted to Ferrari.

Currently, this section of the building is occupied by the Chrysler and Harley Davidson showrooms.

Most of this space will be taken over for the Ferrari showroom, while the rest is understood to be set aside for the marque's workshop operations.

However, all this is likely be a temporary measure, with the ultimate aim said to be to eventually house the exclusive marque in a more impressive stand-alone facility. So far, it is understood that the location for this has yet to be identified.

Before it parked itself in Ital Auto's forecourt, the exclusive Italian marque had been represented by Hong Seh Motors here since 1982.

But three years ago, the Italian exotic carmaker undertook a review of its dealer network across the region in an effort to maximise the full potential of the brand.

For Singapore, it invited interested parties to bid for the franchise.

The successful applicant is expected to invest in a new and more visible showroom in the traditional Leng Kee motor belt or the Orchard Road area, as well as beef up after-sales service and customer care programmes.

Last year, only 45 units of Ferrari sports cars were delivered in Singapore, out of the manufacturer's tiny global total of 6,587 units.

But as the Ferrari badge is arguably one of the most desirable in the world, it was no surprise that an unusually large number of parties was vying for the dealership despite the very low volume involved.

They included Hadi Tanaga, the owner of Audi dealer Premium Automobiles, and Karsono Kwee, who represents Porsche and Rolls-Royce, among other brands.

Mr Ong and Mr Tanaga were the two candidates shortlisted by Ferrari a week ago, while Mr Kwee had to bow out of the race much earlier after pressure from Porsche.