Midas Holdings has doing everything to shed its disastrous failures in 2011.
At what was the golden age for Midas in May 2007, shares in Midas soared to an all-time high of $2.13 a share. That year, it posted earnings of RMB161.1 million ($32.5 million) on the back of RMB708.9 million in revenue, and generated free cash flow of RMB107 million.
Even when the global financial crisis hit, it was business as usual at Midas. Contracts rolled in, particularly through its 32.5% associate company, then known as Nanjing SR Puzhen Rail Transport (NPRT), as the Chinese government poured billions into the country’s infrastructure in a bid to stave off the effects of the crisis.
Earnings grew and, in FY2010, it reported record earnings of RMB241.1 million and a turnover of RMB1.03 billion.
In 2011, however, things went south for Midas when the Chinese rail sector was hit by disaster and a corruption scandal. Beijing halted investment in high-speed rail projects and Midas’ earnings crashed. Since then, China’s economic growth has slowed. And, some industry analysts are projecting that rail sector investments are slowing.
But in recent years, it has been expanding out of China and diversifying into other transport sectors to drive growth. More recently, the manufacturer of aluminium alloy components used in China’s trillion-dollar railway sector announced that its associate had been awarded RMB3.3 billion worth of metro and tramway contracts.
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At what was the golden age for Midas in May 2007, shares in Midas soared to an all-time high of $2.13 a share. That year, it posted earnings of RMB161.1 million ($32.5 million) on the back of RMB708.9 million in revenue, and generated free cash flow of RMB107 million.
Even when the global financial crisis hit, it was business as usual at Midas. Contracts rolled in, particularly through its 32.5% associate company, then known as Nanjing SR Puzhen Rail Transport (NPRT), as the Chinese government poured billions into the country’s infrastructure in a bid to stave off the effects of the crisis.
Earnings grew and, in FY2010, it reported record earnings of RMB241.1 million and a turnover of RMB1.03 billion.
In 2011, however, things went south for Midas when the Chinese rail sector was hit by disaster and a corruption scandal. Beijing halted investment in high-speed rail projects and Midas’ earnings crashed. Since then, China’s economic growth has slowed. And, some industry analysts are projecting that rail sector investments are slowing.
But in recent years, it has been expanding out of China and diversifying into other transport sectors to drive growth. More recently, the manufacturer of aluminium alloy components used in China’s trillion-dollar railway sector announced that its associate had been awarded RMB3.3 billion worth of metro and tramway contracts.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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