Midas Holdings clinches deals worth RMB247.7m

It will supply fabricated parts for highspeed trains.

Midas Holdings has snapped up deals with a combined worth of RMB247.7m for the supply of aluminium alloy extrusion profiles and fabricated parts for highspeed trains.

According to a report by OCBC, the contracts were awarded by CRRC Changchun Railway Vehicles and are slated for delivery in FY16.

“While we note that these contracts will contribute positively, we expect the contribution to be within our growth assumptions made for Midas,” stated the report.

Meanwhile, Midas’ ability to ramp up it new business in cold-rolled aluminium plates and sheets remains unclear. On top of this, its proposed acquisition of Huicheng Capital Ltd (HC) has yet to see completion.

OCBC further points out that the approval in-principle for the proposed acquisition of HC, which also specializes in aluminium products, had been granted by SGX but subject to shareholders approval at Midas’ EGM.