Midas' associate clinches two deals worth RMB3.13b

Midas Holdings (Midas) announced that its 32.5% owned associate, Nanjing SR Puzhen Rail Transport (NPRT) has clinched two metro contracts totalling RMB3.13b.

The first contract is to supply 46 train sets to the Nanjing Metro Line 3 Project and is worth RMB2.15b, with delivery expected to take place from 2013 to 2015. The second contract, valued at RMB0.98b, is for the supply of 21 train sets for the Nanjing Metro Line 10 Project; delivery is expected to take place from 2013 to 2014.

Notwithstanding this positive announcement, we reckon that there could be a muted reaction from the market, given that (i) contribution will only kick in from FY13; and (ii) murky near-term outlook and increasing risk aversion surrounding China's railway industry following the high-speed train collision last Saturday.