China Railways Corporation just placed new orders for 258 new high speed trains worth US$7.3bn........this should benefit Midas holdings !/?

KevinScully.9.13Kevin Scully, executive chairman of NRA Capital. Photo: CompanyTHE INTERNATIONAL RAILWAY JOURNAL has reported that China Railways Corporation has just awarded new contracts for 258 new high speed trains worth US$7.3bn to China Northern Rolling Stock Company (CNR) and China Southern Rolling Stock Company (CSR).  

The contract is divided into two lots - Lot 1 comprising 78 250km/h trains was awarded to CSR Sifang in 8 batches.

Lot 2 comprises 180 350km/h trains to CNR Chang Chun (27 trains), CSR Sifang (83 trains) and CNR Tangshan (70 trains).  

On 21 October 2013, Midas was awarded its first high speed rail contract worth RMB167.5mn from CNR Chang Chun and CNR Tangshan.

It is therefore likely that some of these high speed new contracts will flow to Midas - the question is when and how much ?  

I contacted Midas CEO Patrick Chew who confirmed that Midas would definitely get some contracts but he cannot determine the number and the value at this time.  

I view this announcement positively as the further rerating of Midas, one of My StockPicks, depends on its ability to win more high speed train contracts - which had dried up since 2011 following the Shanghai railway accident.  

I remain positive on Midas and while this announcement does not enable us to quantify the benefits to Midas it does confirm that new contracts are being awarded by China Railways Corporation and that Midas will participate in these contracts.

This article was recently published on, and is republished with permission.

Recent story:  Kevin Scully: "3Q results of STRACO and MIDAS were strong"


You may also be interested in:

You have no rights to post comments

Counter NameLastChange
AEM Holdings3.330-0.050
Avi-Tech Electronics0.270-
Best World1.690-0.020
Broadway Ind0.075-
China Sunsine0.400-
Delfi Limited1.230-0.040
Food Empire1.1100.010
Fortress Minerals0.325-
Geo Energy Res0.285-0.005
GSS Energy0.033-
Hong Leong Finance2.460-0.020
Hongkong Land (USD)3.4700.020
ISDN Holdings0.350-0.010
IX Biopharma0.048-
Jiutian Chemical0.031-
KSH Holdings0.315-
Leader Env0.068-0.002
Medtecs Intl0.138-0.002
Nordic Group0.400-
Oxley Holdings0.105-0.001
REX International0.183-0.006
Sinostar PEC0.137-
Southern Alliance Mining0.650-0.025
Straco Corp.0.445-
Sunpower Group0.295-
The Trendlines0.092-0.002
Totm Technologies0.048-
Uni-Asia Group0.940-
Wilmar Intl3.600-0.070
Yangzijiang Shipbldg1.590-0.030

We have 456 guests and one member online

rss_2 NextInsight - Latest News