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The Board of Directors of Masteel wishes to announce that the Company proposes to seek shareholders’ approval for the proposed renewal of authority for the Company to purchase its own ordinary shares (“Proposed Renewal of Share Buy Back”) at the forthcoming Forty-Ninth (“49th”) Annual General Meeting (“AGM”) of the Company.

A Statement to Shareholders containing details in relation to the Proposed Renewal of Share Buy Back and the Annual Report of the Company for the financial year ended 31 December 2020 will be available in due course.

This announcement is dated 6 April 2021.

Particulars of substantial Securities Holder

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Particulars of Director

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Particulars of substantial Securities Holder

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Particulars of substantial Securities Holder

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Particulars of substantial Securities Holder

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The Board of Directors of Masteel wishes to announce that the Company proposes to obtain shareholders’ approval for the proposed amendments to the existing Constitution of the Company (“Proposed Amendments”) at the forthcoming Extraordinary General Meeting to be convened on a date to be announced later.

The purpose of the Proposed Amendments is to enhance administrative efficiency and provide clarity to the Company’s Constitution.

A circular to the shareholders containing details in relation to the Proposed Amendments will be circulated to shareholders in due course.

This announcement is dated 18 January 2021.

On behalf of the Board, M&A Securities wishes to announce that the listing application in relation to the Proposed Rights Issue with Warrants has been submitted to Bursa Securities.

This announcement is dated 29 December 2020.

By Shahirah Syed Jaafar

KUALA LUMPUR (Dec 7): Integrated steel manufacturer Malaysia Steel Works (KL) Bhd (Masteel) has proposed a rights issue with free detachable five-year warrants to raise up to RM81.5 million.

In a statement today, Masteel said the rights shares would be issued on the basis of one rights share for every two existing Masteel shares held, on an entitlement date to be determined later. Subsequently, one free detachable warrant would be issued for each rights share subscribed by shareholders.

From the RM81.5 million expected to be raised, up to RM69 million would be utilised for working capital requirements, while RM10 million would be used to repay bank borrowings, and the balance RM2.5 million to defray the estimated exercise expenses, the group said.

“We are witnessing an upcycle in steel demand within both the local and regional markets, as governments prioritise high-multiplier infrastructure developments and construction projects to stimulate economic growth. This is clearly advantageous for established steel manufacturers like us, who have both capacity and competitiveness to reap the benefits of this recovery.

“To this end, our recent capital expenditure investments in employing the latest steel melting technology will optimize our cost-efficiency,” Masteel managing director and CEO Datuk Sri Tai Hean Leng said in the statement.

Assuming all treasury shares are sold as at the date of the announcement, the rights issue with warrants will entail the issuance of up to 226.4 million rights shares, together with up to 226.4 million warrants,the group said.

The rights issue with warrants would expand Masteel’s share capital from RM239.9 million comprising 450.4 million shares, to RM402.9 million comprising 905.5 million shares.

Masteel said the exercise, which is expected to be completed in the second quarter of 2021, is not expected to have any material effect on the earnings of the group for the financial year ending Dec 31, 2020.

Shares of Masteel closed one sen or 2.13% higher at 48 sen today, for a market capitalisation of RM217.32 million.

Edited by S Kanagaraju

Regarding its prospects, Masteel said the group expects a steady improvement in its financial performance in the ensuing quarters, due to improved demand for its steel products and operating margins

PETALING JAYA: Malaysia Steel Works (KL) Bhd or Masteel posted a 95.7% year-on-year drop in net profit to RM3.8mil for its third quarter ended September 30,2020.

However, it should be noted the RM86.7mil net profit a year earlier was mainly due to a RM76.6mil land revaluation surplus recognised a year earlier.

Revenue for the quarter under review was 54.3% higher year-on-year to RM417.5mil mainly due to higher sales volume and selling price as a consequence in the recovery of global steel demand.

For the nine months under review, Masteel posted a net loss of RM22.9mil compared with a net profit of RM67.6 mil a year ago, while revenue grew 19.6% year-on-year to RM1.01bil.

It also pointed out that the expansionary 2021 Budget has highlighted the projected growth of the Malaysian construction sector of 13.9% in 2021 valued at RM61.34bil.

By Justin Lim

KUALA LUMPUR (Nov 20): Integrated steel maker Malaysia Steel Works (KL) Bhd (Masteel) returned to black with a net profit of RM3.77 million in its third quarter ended Sept 30, 2020 (3QFY20), from a net loss of RM22.53 million in the previous quarter, as it saw better margin and a rebound in demand for its steel products, amid a strong recovery in the international and local steel market.

Revenue more than doubled quarter-on-quarter to RM417.49 million from RM195.63 million, thanks to higher selling price and volume, its stock exchange filing today showed.

Year-on-year, however, its net profit was down 96% from RM86.73 million in 3QFY19, mainly because the previous year had recorded a land revaluation gain of RM76.65 million.

Profit before tax, meanwhile, tripled y-o-y to RM6 million from RM2.1 million, while revenue jumped 54% from RM270.6 million previously, in line with global recovery of demand for steel and lower operating expenses.

For the cumulative nine months period ended Sept 30, it recorded a net loss of RM22.94 million versus a net profit of RM67.66 million a year ago, though revenue rose 20% to RM1.01 billion from RM845.45 million.

On prospects, the company expects to see a steady improvement in its financial performance in the coming quarters, driven by improved demand for its steel products and operating margins.

The group believes it would be able to ride on the recovery wave in the construction sector, which it expects will be a catalyst to drive demand for steel products.

Masteel’s share price closed up half a sen or 1.56% to 32.5 sen today, giving it a market capitalisation of RM146.37 million.

Edited by Tan Choe Choe

By Azanis Shahila Aman

KUALA LUMPUR: Malaysia Steel Works (KL) Bhd’s net profit fell 62.4 per cent to RM3.8 million in third quarter (Q3) ended September 2020 from RM10.1 million last year due to larger deferred tax recognised in the previous year’s corresponding quarter.

Masteel, an integrated steel manufacturer, tripled its pre-tax profit to RM6.0 million in Q3 from RM2.1 million a year ago, buoyed by a 54.3 per cent jump in revenue to RM417.5 million from RM270.6 million previously.

“The vast improvement in financial performance was mainly attributed to higher sales volume and selling prices in line with the recovery of global demand for steel, as well as lower operating expenses,” it said. 

Masteel posted a convincing turnaround after incurring a net loss of RM22.5 million in the preceding quarter. 

The return to profitability was due to improved margins from the better utilisation of the new plant and equipment and lower operating expenses in Q3, as well as the preceding quarter’s operational disruptions caused by the implementation of the Movement Control Order (MCO).

Stronger demand for steel products on a quarter-on-quarter basis resulted in Q3 revenue more than doubling from RM195.6 million last year. 

For the cumulative nine-month period, Masteel posted 19.6 per cent higher revenue of RM1.0 billion versus RM845.5 million last year. 

Managing director and chief executive officer Datuk Sri Tai Hean Leng said the company’s commendable Q3 outperformance had underscored two primary points. 

Tai said firstly, the company was able to rapidly return its operations to normalcy after the disruptive period of the MCO. 

“More than just demonstrating the management’s extensive experience, it is also testament to the superior technology of our integrated plant that facilitated the quick rebound.

“Secondly, with our operations now running full speed ahead, Masteel is therefore well-poised to meet the anticipated demand for steel products in the construction sector, particularly as Malaysia gears up to carry out various infrastructure megaprojects as indicated in the expansionary 2021 Budget,” he said. 

Tai said Masteel’s two manufacturing facilities were ideally based in Petaling Jaya and Bukit Raja in Selangor, hence enabling the company to support the requirements of projects from Klang Valley to Johor and across the East Coast of Peninsular Malaysia in a timely manner.

“We look forward to reprising our role in supporting this key industry, and even more so as Malaysia’s development aspirations gather momentum in the years to come,” he added.

We refer to the announcements dated 13 September 2019, 17 September 2019, 19 September 2019 and 5 March 2020 in relation to the Private Placement. Unless otherwise defined, the definitions set out in the previous announcements shall apply herein.

On behalf of the Board, UOBKH wishes to announce that the extension of time until 18 September 2020 previously granted by Bursa Securities to Masteel to complete the implementation of the Private Placement has lapsed today.

The Company has, to date, placed out and listed 25,500,000 Placement Shares to the Investor pursuant to the Private Placement and has resolved not to place out all remaining Placement Shares pursuant to the lapsing of the approval from Bursa Securities. Accordingly, the Private Placement is deemed completed today.

This announcement is dated 18 September 2020.

KUALA LUMPUR, Aug 28 ― Malaysia Steel Works (KL) Bhd’s (Masteel) net loss widened to RM22.53 million in the second quarter ended June 30, 2020 (2Q20), from RM10.39 million registered in the same quarter last year.

In a filing to Bursa Malaysia, the steel bars and steel billets manufacturer said its revenue fell to RM195.63 million during the reviewed quarter versus RM294.48 million

“The decrease in revenue in the current quarter was mainly attributed to lower sales volume and selling price due to the negative impact of economic disruptions resulting from the country’s implementation of the movement control order (MCO) in order to curb the spread of the Covid-19 pandemic,” it said.

Moving forward, Masteel said demand for the group’s steel products are expected to continue to improve from the lows of 2Q20.

The unit selling prices are expected to gradually increase to offset the surge of raw material prices resulting from the broad global recovery of demand for steel, it said.

“The company is focused on improving its costs of production, and barring any unforeseen circumstances expects to see improvement of its business results towards the later part of the year,” it added.

No dividend was declared by Masteel during 2Q20.

The Board of Directors of Masteel wishes to announce that the Company proposes to seek shareholders’ approval for the proposed renewal of authority for the Company to purchase its own ordinary shares (“Proposed Renewal of Share Buy Back”) at the forthcoming Forty-Eighth (“48th”) Annual General Meeting (“AGM”) of the Company.

A Statement to Shareholders containing details in relation to the Proposed Renewal of Share Buy Back will be issued and despatched to shareholders of the Company in due course.

This announcement is dated 19 May 2020.

The Company would like to announce that following the Movement Control Order (“MCO“) imposed by the Government of Malaysia effective from 18 March 2020 to 12 May 2020 under the provision of the Prevention and Control of Infectious Diseases Act 1988 and the Police Act 1967 to curb the spread of the coronavirus (“Covid-19“) infection in the country and the announcement by Bursa Malaysia Securities Berhad (“Bursa Securities”) on the extension of time up till 30 June 2020 for the issuance of annual reports which are due by 30 April 2020 and 31 May 2020, the Company will utilise this extension of time granted by Bursa Securities and will ensure that its Annual Report is issued latest by 30 June 2020.

The Company would be submitting the application for extension of time to hold its Annual General Meeting (“AGM”) up to 28 September 2020 with the Companies Commission of Malaysia pursuant to Section 340(4) of the Companies Act 2016.

The Board will determine and announce the appropriate date to hold the Forty Eighth AGM (“48th AGM”) of the Company and the issuance of the Annual Report and Notice of the 48th AGM together with the Circular/Statement to Shareholders, if any, in due course.

This announcement is dated 30 April 2020.