MIDAS SECURES CONTRACTS FOR HIGH-SPEED TRAIN CAR BODY
COMPONENTS WORTH RMB318 MILLION
- Second set of orders from CNR Tangshan since PRC high-speed train tenders reopened in August 2013
- For the supply of aluminium alloy extrusion profiles and certain fabricated parts for high-speed trains
The latest contracts will see Jilin Midas supply aluminium alloy extrusion profiles and certain fabricated parts for high-speed trains that will operate at speeds up to 350km/hr. Slated for delivery in 2014, these contracts are expected to contribute positively to Midas’ financial performance for the financial year ending December 31,2014.
Midas secured contracts worth an aggregate Rmb318m for high-speed train car body components from CNR Tangshan Railway Vehicle, a subsidiary of China CNR, and is slated for delivery in 2014. This is Midas’ largest single announced contract win since Jan 2010 and brings year-to-date orders bagged to Rmb389.9m.
Market watchers are expecting an additional set of orders from CNR Changchun- another subsidiary of China CNR that Midas is working with, to be announced soon. As highlighted previously, Midas is the key beneficiary listed on SGX that may benefit from the favorable policy moves occurring in the Chinese railway sector. Valuations remain fair, with Midas trading at 0.98x P/B. Latest broker recommendations: OCBC maintains Buy with $0.66 TP CIMB maintains Add with $0.71 TP
ZEN wrote: MIDAS SECURES CONTRACTS FOR HIGH-SPEED TRAIN CAR BODY
COMPONENTS WORTH RMB318 MILLION
- Second set of orders from CNR Tangshan since PRC high-speed train tenders reopened in August 2013
- For the supply of aluminium alloy extrusion profiles and certain fabricated parts for high-speed trains
The latest contracts will see Jilin Midas supply aluminium alloy extrusion profiles and certain fabricated parts for high-speed trains that will operate at speeds up to 350km/hr. Slated for delivery in 2014, these contracts are expected to contribute positively to Midas’ financial performance for the financial year ending December 31,2014.
Share price yesterday never fly.... today till now looks like might go south.
Midas announced a significant high speed railway order win worth RMB318m, from CNR Tangshan for the delivery of high speed train car body components, for trains travelling up to a speed of 350km/h.
For delivery between 2014, the clinching of this order should help the Group's earnings rebound significantly this year.
YTD, the Group has announced wins of c. RMB390m, which is in line with our expectations.
Just as importantly, this represents the second high speed railway order win since 4Q13 last year, and should signify a return of high speed railway projects and contracts for Midas.
Excluding the revenue delivered in the first quarter of this year, the Group's order books would be around RMB1.3bn, with more to come from both metro and overseas contracts. Maintain BUY, target price S$ 0.64.
ZEN wrote: Midas announced a significant high speed railway order win worth RMB318m, from CNR Tangshan for the delivery of high speed train car body components, for trains travelling up to a speed of 350km/h.
For delivery between 2014, the clinching of this order should help the Group's earnings rebound significantly this year.
YTD, the Group has announced wins of c. RMB390m, which is in line with our expectations.
Just as importantly, this represents the second high speed railway order win since 4Q13 last year, and should signify a return of high speed railway projects and contracts for Midas.
Excluding the revenue delivered in the first quarter of this year, the Group's order books would be around RMB1.3bn, with more to come from both metro and overseas contracts. Maintain BUY, target price S$ 0.64.
All these report for reference ONLY, cannot believe too much.
Latest from The Business Times...
China's railway operator to increase investment in 2014
[BEIJING] China's national railway operator will raise its annual investment by 20 billion yuan (US$3.23 billion) to 720 billion yuan in 2014 to increase the number of lines it plans to build, the head of the company said in remarks published on Wednesday.
Sheng Guangzu, general manager of China Railway Corp, was quoted by the official People's Daily as saying that the company is targeting starting construction of 48 railway projects this year, up from 44 projects in its previous plan.
China also plans to increase the total length of railway lines being laid to more than 7,000 kilometres this year, up at least 25 per cent from actual construction finished last year, Sheng said.
NextInsight
a hub for serious investors
