Midas Holdings, the manufacturer of aluminium alloy extrusion products for China’s railway sector, announced a 14.9% rise in net profit to $37.5 million for the financial year ended December 31, 2009 (FY2009).

Revenue from continuing operations, namely the Aluminium Alloy Division and the Polyethylene Pipe Division, increased 8.6% to $150 million for the year. The group had ceased the trading operations of its Agency & Procurement Division in March 2009 to focus on its core business.

Midas says the group’s key revenue contributor — the Aluminium Alloy Division experienced a 12.9% increase in revenue from $126.7 million in the financial year ended December 31, 2008 (FY2008) to $143 million. This accounted for 95.4% of total revenue for the year. Within the division, the Transport Industry and Power Industry contributed 64.8% and 17.9% to revenue respectively. The remaining 17.3% of the division’s revenue was attributable to the Others segment.

Overall gross profit margin was up 3.5 percentage points from 34.2% in FY2008 to 37.7% in FY2009. The increase was due to a higher gross profit margin of 38.4% at its Aluminium Alloy Division, compared to 35.2% in FY2008, resulting from a decline in raw material cost.
The group’s associated company, Nanjing SR Puzhen Rail Transport Co. (NPRT) contributed $3.3 million in FY2009, representing a 73.1% increase from $1.9 million in FY2008.

Combined with $0.3 million in profit from the group’s discontinued Agency and Procurement Division, FY2009 ended with a 14.9% growth in net profit attributable to shareholders from $32.7 million in FY2008 to $37.5 million.