Midas posts 6.6% increase in 3Q earnings to $4.9 mil

Midas posts 6.6% increase in 3Q earnings to $4.9 mil

By: 
Stanislaus Jude Chan
13/11/17, 07:11 pm

SINGAPORE (Nov 13): Midas Holdings reports earnings of RMB 24.1 million ($4.9 million) in the 3Q ended September, up 6.6% from RMB 22.6 million a year ago.

Revenue climbed 11.5% to RMB 458.5 million in 3Q17, from a restated RMB 411.0 million a year ago.

This was attributed to a 16.9% increase in revenue from the group’s aluminium alloy extruded products division to RMB 347.2 million in 3Q17, mainly due to higher export sales.

Share of profits of an associate fell 40.4% to RMB 7.4 million, from RMB 12.4 million a year ago.

This was mainly due to decreased delivery from its associated company, CRRC Nanjing Puzhen Rail Transport Co., to its customers during the quarter.

As at end September, cash and cash equivalents stood at RMB 944.0 million.

“Our business has continued to ride on the continued growth of the railway sector in the PRC and globally. Through the aluminium alloy extruded products division, the group is also working to expand our customer base and industries served,” says CEO Patrick Chew.

Looking ahead, the group says the railway sector in China is expected to continue its strong growth in the mid- to long- term, underpinned by Beijing’s investments into the development of the country’s rail network.

On the international front, it says China’s Belt and Road Initiative continues to make inroads into other markets outside of the country through the government’s active pursuit of international rail projects.

“As a leading player in the PRC railway industry, Midas is poised to capitalise on opportunities arising from these positive industry developments,” says Chew.

Shares of Midas closed 1 cent higher, or up 4.9%, at 21.5 cents on Monday.

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