Secures largest-ever project order win. Midas Holdings announced that its Aluminium Alloy Division, Jilin Midas Aluminium Industries, has secured two contracts that are worth Rmb603m collectively. These contracts will be for the supply of aluminium alloy extrusion profiles for a total of 100 train sets for the inter-city high-speed train CRH3-380 project in China.

We reiterate that Midas’ ability to clinch these contacts further proves its market leadership position in the PRC rail transportation sector. Additionally, the PRC government’s Rmb4 trillion stimulus package – which has a strong focus on rail infrastructural development – is generating many opportunities in the railway infrastructure market.

Valuations. These two contracts are expected to be earnings-accretive for 2H09 to 2011. We maintain our BUY recommendation with target price of S$0.855 under review.