Midas holdings poised to clinch more contracts with China Railway Corp

CRC is set to release $14b worth of contracts this year.

Mainboard-listed Midas Holdings is poised to clinch more contracts as China Railway Corporation (CRC) recently revealed the tender for 776 new sets of cab integrated radio communication equipment (CIR).

According to OCBC, this implies that the total number of MUs likely to be released for tenders in 2014 is 388 since two CIRs are needed for each multiple units with eight carriages.

“The total value expected is ~CNY70b and likely to be shared between China CNR Corporation (CNR) and CSR Corporation (CSR). We believe Midas Holdings (Midas) is poised to benefit since majority of its revenue is generated through contracts with CNR and CSR,” noted OCBC.

Here’s more from OCBC:
Furthermore, we believe winning a global award from Siemens’ Rail Systems Division allows Midas to have more international recognition and improves its position to compete in the global railway market.

The award also gives Midas an edge over its competitors to win new contracts from Siemens in the future. We believe it is still too early to determine any impact from the award and with the recent tenders already factored in our model.