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Singapore’s Big Winner for the Week: Midas Holdings Ltd

Midas Holdings Ltd  (SGX: 5EN) surged by some 5% since last Friday to close at S$0.325 for the week. Meanwhile, the Straits Times Index (SGX: ^STI) had gained just 0.4% during the same timeframe; this makes Midas one of Singapore’s big winners for the week.

The company prides itself as being the “leading manufacturer of aluminium alloy extrusion products for the passenger rail transportation sector” in China.  Its clients include both Chinese train manufacturers and international customers like Alstom Transport, Siemens AG and Bombardier Transportation.

On Tuesday, the firm announced that it had secured a US$58.3 million contract to supply aluminium alloy extrusion profiles and fabricated parts for a rail project in the United States.The new rail contract, which is Midas’ first contract of its kind in the U.S., will span from 2015 to 2020 and is also the company’s “single largest export contract to-date”.

Mr Patrick Chew, Executive Director and Chief Executive Officer of Midas, commented on the new project:

“We are delighted to have secured our first contract for a US rail project. Our success in securing this export order is a testimony of the international recognition of Jilin Midas’ technical capabilities and quality output.

Backed by our market leading position in the PRC as well as established track record, the Group is well-placed to grow our orders from both international and PRC markets and expand our geographical footprint globally.”

The company currently has operations in Singapore, Russia, Saudi Arabia, South Korea, and Malaysia, among others.

Midas is now trading at a historical price-to-earnings ratio of 32 and sports a dividend yield of 1.5%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.