Midas

Midas: announced that it has been awarded two metro contracts worth RMB62.2m in total. The first contract, worth RMB33.7m, would involve the provision of aluminium alloy extrusion profiles for 22 train sets, or 132 train cars for the Ningbo Metro Line 1 project, which is Midas’ first penetration into the city. The second contract of RMB28.5m will see Midas supply aluminium alloy extrusion profiles for 21 train sets, or 126 train cars for the Nanjing Metro Line 10 project. Delivery for both contracts is scheduled to take place gradually from 2012 to 2013. This is Midas’ first contract wins announcement for the year. Metro contracts will continue to play a key role in Midas’ operations, given that China’s Ministry of Railways has yet to resume the re-tendering of high-speed rail train car contracts. OCBC maintains estimates as its projections allow for such contract wins. Keeps at Hold with TP $0.33.