Midas Holdings' JV sealed CNY420m train contract

It'll supply 56 train cars by 2014.

According to OCBC Investment Research, Midas Holdings (Midas) announced last evening that its 32.5%-owned JV company Nanjing SR Puzhen Rail Transport (NPRT) has clinched a train contract worth CNY420m.

Here's more:

This is for the supply of 56 train cars for the Shenzhen Metro Line 4 project. Delivery is scheduled to take place from 2013 to 2014, and we believe this may lead to potential contract wins for Midas as it is a key supplier of NPRT.

We note that this is the third announced contract order of the year for NPRT, with cumulative contract wins amounting to ~CNY1.47b YTD. While NPRT had been a drag on Midas’ recent 1Q13 results, we believe that its contribution to Midas could improve in 2H13, given its order book schedule on hand.