Midas Holdings announced last evening that it has secured two metro contracts from its repeat customer CNR Changchun Railway Vehicles Co worth CNY52.2m. The first contract amounts to CNY25.5m and involves the supply of aluminium alloy extrusion profiles for the Nanchang Metro Line 1. Delivery is scheduled in 2H14. The second contract is worth CNY26.7m for the Wuhan Metro Line 3, and Midas will deliver the orders between 2014 and 2015.

YTD, Midas has clinched ~CNY589.1m of contracts. Separately, Midas also announced that its CEO Mr. Patrick Chew has been awarded the “Best Chief Executive Officer” Award (for companies with S$300m to less than S$1b in market cap), at the Singapore Corporate Awards 2014. We maintain BUY on Midas with an unchanged fair value estimate of S$0.61, pegged to 1.2x FY14F P/B.

Source: OCBC Research - 16 Jul 2014