CNY1.1b metro contract a "sizeable win" for Midas Holdings JV: OCBC

If previous contract wins are any indication.

Midas Holdings (Midas) recently announced that its 32.5%-owned JV company Nanjing SR Puzhen Rail Transport (NPRT) has, together with its consortium partners Shanghai ALSTOM Transport Electrical Equipment and ALSTOM Transport S.A., clinched a CNY1.1b metro contract for the supply of 29 train sets (or 174 train cars) for the Nanjing Metro Line 4 Phase 1 project. Delivery is scheduled from 2014 to 2016.

OCBC Investment Research said that although NPRT’s percentage share of the contract was not disclosed, "we believe that it may be around the 70-75% range, after taking reference from previous contract wins by NPRT and its consortium partners."

It added that "this would equate to a contract amount of ~CNY770-825m for NPRT, which is a sizeable win, in our opinion."