Midas

Midas: China’s National Development and Reform Commission (NDRC) had approved plans for 5 railway projects in Xinjiang, Heilongjiang, Zhejiang, Jiangsu, Anhui and Shandong. The combined planned investment is Rmb142.4b, of which Rmb10.8b is expected to be spent on locomotive investment. We expect a portion of the latter to trickle down to Midas, which supplies aluminium alloy extruded products for both train makers CNR and CSR.