Midas

Midas: JV company, Nanjing SR Puzhen Rail Transport Co (NPRT), has secured a Rmb1.73b ($374.7m) metro train contract with a consortium partner. The contract is scheduled for delivery between 2016 and 2017. The group expects that continuing development and expansion of China's passenger rail network will continue to bring about higher demand for metro train cars. Maybank-KE still has a Buy rating on Midas with TP of $0.52. The counter is a laggard but prime beneficiary of China rail investments, which could exceed Rmb1.1t in 2015. Merger of China CNR and China CSR (both are key clients) will give enlarged company more clout to compete for overseas rail projects.