Demand for trains lifts earnings at Midas Holdings

SINGAPORE - Midas Holdings said its second quarter net profit rose by 61.8 per cent to 18.7 million yuan.

Revenue for the three months to June 20 climbed by 2.3 per cent to $382.8 million.

Its aluminium alloy extruded products division saw revenue increase by some 11.4 million yuan or 3.1 per cent to 381.4 million yuan.

For the first half year, net profit rose by 27.6 per cent to 28.7 million yuan despite revenue dropping 1.2 per cent to 686.4 million yuan.

Midas noted that investments in China's railway sector is expected to remain robust, backed by the government's plans to expand the domestic railway network to 150,000km by 2020, including 30,000km of high-speed rail.

Short-term prospects for the railway sector also remains positive, buoyed by the government's planned assets investment target of 800 billion yuan this year to expand China's railway network.

The country also continues to eye global opportunities by leveraging its expertise in high-speed rail construction.

It has plans to build high-speed rail networks connecting China with all of Southeast Asia.

Meanwhile,CRRC Corporation, China's largest rail train manufacturer, is also discussing with the authorities in more than 30 countries over high speed rail projects.

As a result, Midas expects the positive industry environment to benefit market players and it will continue to actively seek opportunities in China and international railway sectors.

The group also continues to seek and leverage diversification opportunities into other product segments as well as in export markets.