Written by The Edge
Midas Holdings has posted a 17.6% y-o-y increase in profit attributable to equity holders to $11.1 million for the three months ended June 30, 2010 (2Q2010).
Group revenue increased 25.8% from $37.8 million in 2Q2009 to $47.6 million in 2Q2010. This was driven mainly by an increase in sales volume from the Aluminium Alloy Division.
Revenue from the Aluminium Alloy Division increased 26.4% from $36.0 million in 2Q2009 to $45.5 million in 2Q2010, accounting for 95.6% of total revenue for the quarter.
Within the division, the Transport Industry, Power Industry and Others segment contributed to 77.9%, 4.8% and 17.3% of its revenue respectively.
The group reported an overall gross profit margin of 32.4% in 2Q2010, compared to 41.3% in 2Q2009. This was due to higher raw material costs resulting in a lower gross profit margin of 33.1% at the Aluminium Alloy Division for the quarter under review.
Contribution from the group’s associated company Nanjing SR Puzhen Rail Transport Co., Ltd (NPRT), increased from $0.2 million in 2Q2009 to $2.4 million in 2Q2010, due mainly to an increase in delivery of train cars.
For the six months ended June 30, 2010, the group’s revenue was up 35.6% to $93.6 million while its total profit attributable to equity holders increased 17.1% to $21.0 million.
The group’s cash position remains strong as at June 30, 2010, with cash and cash equivalents of $103.2 million.
Midas has declared a second interim dividend of 0.25 cents per ordinary share.
