MIDAS HOLDINGS

Midas Holdings said its subsidiary, Jilin Midas Aluminium Industries Co., has secured two new contracts worth a combined RMB123.4 million ($24.3 million), for the supply of aluminium alloy tubings.
Awarded by leading power industry players, Xian Switchgear Electric Co., and Xian High Voltage Apparatus Co. Ltd, the two contracts are valued at RMB100.3 million and RMB23.1 million respectively.

Patrick Chew, CEO of Midas, said, “Midas has made good progress this year. The latest contracts not only attest to customers’ confidence in our quality products, but also demonstrate our versatility in product diversification and growing our core aluminium alloy business beyond its traditional stronghold in the PRC railway sector.”

Delivery for the abovementioned orders are expected to take place between 2012 and 2013.The contracts are expected to contribute positively to the Group’s financial performance for the year ended December 31, 2012 and 2013.

In addition, the group said that Jilin Midas has signed a Strategic Cooperation Agreement with Xian Switchgear Electric. The tenure of the agreement is for a one-year period, with an option to renew for another year upon expiry. Under the terms of the agreement, Jilin Midas will continue to enjoy preferred supplier status as long as Jilin Midas upholds its widely recognised high standard of manufacturing and its quality products are priced competitively.

In addition, the agreement will also facilitate the exchange of information relating to aluminium alloy specification requirements in the China power industry, as well as Jilin Midas’ manufacturing capabilities and technologies.

OCBC SECURITIES :

Midas Holdings (Midas) announced that it has been awarded two new contracts totalling
CNY123.4m for the supply of aluminium alloy tubings to two power industry players Xian
Switchgear Electric (CNY100.3m) and Xian High Voltage (CNY23.1m).

Delivery is scheduled to take place between 2012 and 2013. Although the power industry contributed only 6.1% of its 1H12 revenue, we believe that these latest contract wins would allow the group to buffer the current standstill in highspeed passenger train car contracts and
diversify its business beyond China’s railway sector. Management would likely seek to
secure more contracts in this area.

We see more potential for near-term contract wins in the power, metro and international rail transport sector for Midas. Maintain BUY and S$0.41 fair value estimate. (Wong Teck Ching Andy)

this gem is ready to rumble

Published today! September 06, 2012
China approves 25 rail projects worth US$110b

SHANGHAI - China's top planning body has approved 25 rail projects that could be worth more than 700 billion yuan (US$110.3 billion), the official China Securities Journal reported on Thursday, the latest measure to stimulate the country's slowing economy.

The National Development and Reform Commission (NDRC) has approved project plans and feasibility studies for the 25 projects in cities such as Suzhou, Hangzhou, Chengdu, Shenzhen, Changchun and Tianjin, the paper reported, quoting the NDRC's website.

It estimated the investment amount, excluding two inter-city railways, would be more than 700 billion yuan.

This week, China rolled out a series of plans for infrastructure spending, notably from the Ministry of Railroads, aiming to boost confidence that the government is committed to keeping economic growth from sagging further.

A source close to the NDRC told the paper it is unlikely there will be a large number of approvals in the fourth quarter. - REUTERS

source: DBS Vickers

Construction of a $7 billion train link between Laos and China will go ahead next year after a Chinese bank threw a financial lifeline to the stalled project, state media reported Friday.
The two countries had initially agreed to jointly fund the line, which will run from the Chinese border to Vientiane, but Beijing pulled out over reported concerns about profitability.
Chinese state-run EXIM bank has now stepped in with a loan offer for Laos, an official from the public works and transport ministry told the Vientiane Times, adding the pair were "now ironing out the details" of the loan.
Another official at the ministry confirmed to AFP that discussions on the details of the loan were underway along with consultations over the route.
"The work has not started yet, but we plan to finish it in five years," said the official, who did not want to be named.
A Chinese firm will carry out the construction, the Vientiane Times report said, describing the project as the biggest ever infrastructure scheme undertaken by communist Laos.