Midas

Midas: Announced that it has secured a metro contract worth Rmb 44.3m ($9.08m) for the building of Changchun Metro Lines 1 and 2. Under the contract, Jilin Midas will supply aluminium alloy extrusion profiles for 44 train sets. Delivery is expected to take place between this year and 2015. The contract is expected to have a positive impact on the group's financial performance for those years. We note that this is the group’s 4th contract Ytd at the subsidiary level and brings its orders wins at the subsidiary level to Rmb424.3and order book to ~Rmb 700-800m. We opine however that Midas would need to secure more railway contracts at its subsidiary level, before share price could see a re-rating. Despite talks / speculations that 2013 will see a heavy influx of orders in China’s railway industry, we note that ½ of the 4 contracts won by Midas this yr has came from overseas contracts instead.