Midas Holdings clinched $69.9m worth of new contracts in Q3

The projects are in the PRC.

Midas Holdings today revealed that its subsidiary, Jilin Midas, has been awarded international and PRC contracts worth $69.9m (RMB335.5m).

At the same time, Midas also announced that its joint venture company, Nanjing SR Puzhen Rail Transport and Shanghai Alstom Transport Electrical Equipment, have jointly secured a metro train contract worth $186.88(RMB897m).

The international contracts secured by Jilin Midas are for the supply of aluminium alloy extrusion profiles and fabricated parts to two major European train projects. Delivery for these contracts is expected to take place progressively from 2014 to 2021.

According to OCBC, historical trends show that most of Midas’ deliveries had been front loaded.

“We believe to see more meaningful contribution in 2015 and 2016 for China projects and meaningful impact lasting into at least 2017 for the Europe contracts. We expect positive impact in the short term but continue to remain cautious over its long-term business sustainability,” noted OCBC.