Midas

Midas: Positive newsflow continues after Grp announced its second contract for the yr at the subsidiary level. Grp has won a Rmb182.6m (US$29.35m) contract to supply aluminium-alloy extrusion profiles to the Russian railway market. The deal was sealed with Ural Locomotives, a JV between Siemens AG and Russia's Sinara Group. Delivery for the contract is to take place progressively from this year to 2019. Contract win could see grp diversifying away from the Chinese market and provide Midas with another revenue stream, while not forgetting an expected increase in orders from its domestic market, on back of an increase in Capex from the Ministiry of Railway in China. Recall last wk the grp secured Rmb109.6m worth of contracts, with latest orders, grp’s current order book stands at approx Rmb700-800m. While share price has been sluggish, if grp continues its order win rate, investors could expect a positive rerating in share price.