Midas: announced a letter of intent (LOI) with Bombardier Sifang for downstream fabrication work, involving the provision of welding and machining services for train carbody components, for 475 “CRH1” high speed train cars. No contract value has been disclosed. While scope of work could be different, a previous fabrication contract for 1,280 train cars was about RMB50m.
Before contract can be signed, Midas has to ensure that its facilities, eqpt and personnel fulfil Bombardier’s requirements. The customer’s vote of confidence in Midas’ new downstream services is a positive, given management’s plans for this segment to be another significant revenue driver in the future. KE has a Buy call with $1.22 target.
No comments:
Post a Comment