Midas's Q3 bottom line lifted by higher profits from associate

MIDAS Holdings turned in a 63 per cent year-on-year jump in net profit to 22.57 million yuan (S$4.67 million) for the third quarter ended Sept 30, 2016, boosted by an increased share of profits from the group's associated company, CRRC Nanjing Puzhen Rail Transport Co.

Revenue rose 2.1 per cent year on year to 420.78 million yuan thanks to contributions from its aluminium alloy stretched plates division.

Midas manufactures aluminium alloy extrusion products for the passenger rail transportation sector in China.

During the quarter under review, share of profits from its associate increased from 2.52 million yuan to 12.4 million yuan on the back of increased delivery to its customers during the period.

Midas said: "Looking ahead, the group expects the recent developments to positively impact the industry's operating environment, and will continue to leverage the positive industry trends in the railway industry to actively seek out new market opportunities, both in the PRC and globally."