Midas' arm grabs CNY338m low-floor tram

It's the subsidiary's first 100% low-floor.

According to OCBC, Midas Holdings (Midas) announced that its 32.5%-owned JV company Nanjing SR Puzhen Rail Transport (NPRT) has clinched its first 100% low-floor tram contract valued at ~CNY338m.

This entails the supply of 18 100% low-floor trams for the Suzhou National New & Hi-tech Industrial Development Zone Tramline 1 project.

Here's more from OCBC:

We see potential in the development of the low-floor tram business, as more than ten cities in China are currently working on modern 100% low-floor tram projects.

Delivery and hence contribution would only take place in 2014 for NPRT. However, we believe that NPRT’s first tram contract win highlights the possibility of a new revenue stream, besides its core metro business.

In addition, we understand that these trains are made of aluminium and thus provide potential orders from NPRT to Midas for its Aluminium Alloy Extruded Products Division.