Midas Holdings Limited (麦达斯控股
有限公司) (“Midas” or the “Company”, together with its subsidiaries, the “Group”;
SGX-ST stock code: 5EN; SEHK stock code: 1021) today reported a 61.8% jump in
net profit after tax to RMB18.7 million for the three months ended June 30, 2016
(“2Q2016”), from RMB11.6 million a year ago (“2Q2015”).
The improved profitability in 2Q2016 was backed by a 2.3% increase in revenue to RMB382.8 million and a 53.3% jump in share of profits from the Group’s associated company CRRC Nanjing Puzhen Rail Transport Co., Ltd (南京中车浦镇城轨车辆有限责任公司) (“NPRT”) to RMB10.6 million. For 2Q2015, the Group reported revenue of RMB374.3 million while share of profits from NPRT was RMB6.9 million
Net profit increased 61.8% to RMB18.7 million in 2Q2016, from RMB11.6 million in 2Q2015. The Group’s balance sheet remains healthy, with cash and cash equivalents of RMB1.2 billion as at June 30, 2016
MIDAS WINS HIGH SPEED AND METRO TRAIN CONTRACTS WORTH RMB53.8
MILLION IN THE PRC
- RMB34.6 million contract for the supply of aluminium alloy extrusion
profiles and fabricated parts for high-speed train cars
- RMB19.2 million contract for the supply of aluminium alloy extrusion
profiles to Haerbin Metro Line 1
- Orders slated for delivery from 2016 to 2017
I have not looked at Midas for a long time but it is going to be back on my radar screen after so many interesting contract wins. Its 32.5% owned CRRC Nanjing Puzhen Rail Transport has secured four new metro train car supply contracts worth CNY2.59b, with delivery slated between Aug ’17 and Mar ’19. With these orders, its JV would have accumulated CNY7.17b of new projects YTD.
Chinese rail car manufacturer CRRC Corp will build 64 subway cars for the Los Angeles metro as part of an order that could be worth as much as $647 million.
A CRRC executive confirmed the news on Monday, which was first announced by the Los Angeles County Metropolitan Transportation Authority (LACMTA) late last week.
The LACMTA said these cars will be used for the metro's red and purple lines, and they may also opt to buy another 218 subway cars, bringing the total order value to about $647 million, it said.
The metro cars' exterior shells will be manufactured in one of CRRC's factories in northeastern China, while the final assembling will be done in Springfield, Massachusetts, where the company is also manufacturing trains for Boston's subway system, the LACMTA added.
This win reflects how CRRC has been steadily gaining ground in the United States. The company had won a $567 million Boston contract in 2014, and another bid worth $1.3 billion last year to build rail cars for Chicago.
Go and look at the balance sheet especially. working capital, the amount of money to repay this year and finally, the cash flows and you will know the answer.
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