Shares of Singapore-listed Midas Holdings, a supplier of aluminium components for trains, jumped more than 5% on Friday after its joint venture company won a 526.9 million yuan ($105 million) commuter rail contract in China.
By 9:14 a.m., Midas shares were up 5.3% at $0.40, outperforming the broader Straits Times Index, which was 0.6% higher.
Midas said on Thursday Nanjing SR Puzhen Rail Transport, in which it has a 32.5% equity stake, will supply 23 train sets to the Suzhou Metro Line 2 Project in China. Delivery is expected from 2013 to 2014.
“This development highlights the improving sentiment for China's metro industry, following the Shanghai metro train crash in September 2011,” OCBC Investment Research said in a report.
OCBC estimated the latest contract would boost NPRT's order book to around 7.5 billion yuan.
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