Midas Holdings' Q2 profit up 61.8%

A SURGE in share of profits from an associated company has pushed Midas Holdings' net profit up by 61.8 per cent to 18.7 million yuan (S$3.79 million) for the second quarter.

Revenue for the three months to June 30 came in at 382.8 million yuan, up 2.3 per cent from 374.3 million yuan in the same period a year ago, Midas said in a Singapore Exchange filing on Friday.

Midas' improved profitability in the quarter was buoyed by a 53.3 per cent spike in share of profits from its associated company CRRC Nanjing Puzhen Rail Transport Co to 10.6 million yuan, up from 6.9 million yuan previously.

This translates to earnings per share of 1.54 fen for the quarter, up from 0.95 fen in the previous corresponding period.

No dividend has been declared.

Midas, which mainly provides aluminium alloy products to train manufacturers, has also diversified into the aviation and aerospace industries, following the completion of its acquisition of Huicheng Capital in July.

Said the firm's chief executive Patrick Chew: "Moving forward, Midas will continue to leverage our competitive advantages as a quality supplier to tap new opportunities both in China and in international markets.

"We will also leverage our new production capabilities arising from the acquisition of Huicheng Capital to achieve diversification growth in other product segments."

The counter closed one cent down at 24 Singapore cents on Friday before the results were released.