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Immediate Announcement on Shares Buy Back

Thursday, January 10th, 2019
Date of buy back10 Jan 2019
Description of shares purchasedOrdinary
CurrencyMalaysian Ringgit (MYR)
Total number of shares purchased (units)52,000
Minimum price paid for each share purchased ($$)0.470
Maximum price paid for each share purchased ($$)0.475
Total consideration paid ($$)24,803.28
Number of shares purchased retained in treasury (units)52,000
Number of shares purchased which are proposed to be cancelled (units)0
Cumulative net outstanding treasury shares as at to-date (units)1,675,000
Adjusted issued capital after cancellation 
(no. of shares) (units)
Total number of shares purchased and/or held as treasury shares against total number of issued shares of the listed issuer (%)0.39205

2013 Annual Report: Managing Director/CEO’s Statement

Wednesday, July 9th, 2014

FY2013 Overview

Amidst the tough operating environment of 2013 – where the global steel industries grappled with reduce operating margins. I am pleased to note that Masteel stood on solid footing in FY2013.

Our established position in the Klang Valley and strong track record for timely delivery of quality steel products placed us in favourable position to meet rising steel bar requirements in the domestic market. Notably, the Group effectively captured higher market share of steel bars in the year, as the construction of major infrastructural projects such as Klang Valley MRT and LRT extensions were being progressively implemented.

This enabled the Group to register RM1.38 billion in revenue for FY2013, increasing 4.8% from previous year and the highest in the Group’s corporate history.

Unsurprisingly, the domestic market represented 92.4% of FY2013’s revenue, with RM1.27 billion in sales. This was 16.6% higher than RM1.09 billion a year ago.

The balance RM103.85 million of FY2013 group revenue was contributed by export sales, reducing from RM221.74 million a year ago, on the back of keener international competition.

Nonetheless, Masteel kept its focus on honing our strategic advantage on home ground, through our constant efforts to improve the operational efficiency and utilisation rate of our plants, thus enhancing our operating income to achieve better profitability.

Masteel ended FY2013 positively with strong net profit of RM27.01 million.

Growth Strategies

As Malaysia surges forward as a rapidly-developing country, we foresee that the domestic market will be in great need of steel bars for the purpose of infrastructure and housing construction.

Over the years, Masteel has progressively pursued the expansion of our production capacities to better meet the demands from ongoing developments locally and in the region.

In FY2013, we expanded the production capacity of our billet plant in Bukit Raja, Klang by 50,000 metric tonnes (MT) to reach 650,000 MT per year, from 600,000 MT previously. This upgrading work will continue for our meltshop to reach a production capacity of 700,000 MT steel billets per year, which is scheduled for completion at the end of 2014.

Furthermore, we are also in the process of constructing a second rolling mill in Bukit Raja, which is slated to be ready by mid-2015. This will take our annual total steel bar capacity from 400,000 MT in FY2013 to 550,000 MT in 2014.

We are confident these strategies would become key pillars that will strengthen the Group’s profits.

Corporate Updates

  • Joint-Venture Agreement with KUB Malaysia Berhad

Masteel remains committed to the joint-venture company with KUB Malaysia Berhad, Metropolitan Commuter Network Sdn Bhd (MCN), to co-operate in pursuing the rail transit network project interlinking the Iskandar Development Region and Woodlands, Singapore.

MCN is in active discussions with various Federal & State government ministries and agencies, as well as financial institutions with regard to the next steps for the project.

It should be noted that the MCN project involves extensive coordination with multiple stakeholders, therefore a project of this scale would understandably incur considerable time for planning and implementation. Further updates will be made via announcements to Bursa Malaysia.


The Budget 2014 announcement aptly demonstrates the Malaysian Government’s commitment to continue rolling out of major infrastructure projects and iconic developments such as the KVMRT, LRT and highway extensions, High Speed Rail, Bandar Malaysia as well as Tun Razak Exchange.

The Government also reiterated its stance to provide affordable homes, resulting in the construction of approximately 80,000 affordable residences nationwide under PR1MA, as well as the provision of incentives for property developers to build homes catering to mass market.

The ongoing transformation of the Greater Klang Valley region into a world-class metropolis paints a robust outlook for the construction and property development sectors in Malaysia, translating into buoyant prospects for steel products manufactured by Masteel Bhd.

Our factories’ strategic location in the Klang Valley marks a proven competitive advantage and places us within the thriving hub where the major anticipated uptake in steel bar demand is centered.

Our RM100 million investment in capital expenditure to build up new capacity in our core business will allow us the flexibility to meet existing and expected future demand, as well as pave the foundation to expand our market share.

Even so, our management team is mindful of the challenges in the industry, including rising electricity tariffs and other costs, and will strive to enhance cost-efficiency in all our operations. We are optimistic that these measures will go a long way towards not only mitigating the higher-cost environment but also improving our industry position.

All said, we are confident of our future prospects, and will aim to continue playing our role as a prominent player in
the Malaysian steel industry.


Bearing testimony to our brand excellence and shareholders’ value creation in Malaysia’s steel manufacturing sector, Masteel was awarded the “Best Brands Awards 2012-2013 in Manufacturing – Steel” by The BrandLaureate. This was accentuated with the concurrent receipt of the “Brand Personality Awards 2012-2013”, cordially accepted in my professional capacity as Masteel’s Managing Director/Chief Executive Officer.

Dato’ Sri Tai Hean Leng @ Tek Hean Leng
Managing Director/Chief Executive Officer

2013 Annual Report: Chairman’s Statement

Wednesday, July 9th, 2014

Dear Shareholders,

Since inception in 1971, Masteel has demonstrated its ability not only in the scaling up its manufacturing operations, but also in fine-tuning its business model and technological advantages. This year marks Masteel’s 42 years of steel bar manufacturing par excellence.

On behalf of the Board of Directors for Malaysia Steel Works (KL) Bhd (Masteel or the Group), I am honoured to present you the Group’s 2013 Annual Report and audited financial statements for the financial year ended 31 December 2013 (FY2013).

The steel sector witnessed a challenging FY2013, largely due to the over-supply of steel from China, which opened the doors to steel dumping issues all over the world including Malaysia.

However, the China-imported steel bars failed to make significant headway into the domestic market, with import quantities remaining at low levels throughout the year. This was attributable to the preference of Malaysia’s construction industry to source steel bars from reliable local manufacturers, owing to quality requirements, timely on-demand delivery and storage constraints.

I am proud to state that Masteel, with strategic presence within the Klang Valley, has secured a significant share of increasing steel demand from the numerous public and private sectors’ infrastructure and property development projects. These included high-impact mega projects, such as the light rail transit (LRT) extension, Klang Valley Mass Rapid Transit (MRT) train network, and other iconic developments.

Moreover, we continued to benefit from the relatively-stable prices of our raw material of scrap metal, thereby shielding us from the price volatility of iron ore.

I am pleased to acknowledge our visionary management team, who endeavoured to improve our operations’ efficiency and meet the industry demands, thus steering Masteel towards another remarkable year.

FY2013 Financial Highlights

Against this backdrop, we charted a good year with four consecutive quarters of profitable performance in FY2013. This resulted in Masteel achieving record revenue of RM1.38 billion, a 4.8% increase from RM1.31 billion in FY2012. The topline increase is commendable in view of the challenging industry environment, and demonstrates the mitigating effect of higher sales volumes over lower average selling prices.

The higher demand for our steel bars resulted in overall higher capacity utilisation allowing Masteel to benefit from the economies of scale and positive operating income. This enabled us to reap 16.3% higher profit before tax of RM28.96 million in FY2013 compared to RM24.90 million previously. The Group ended the year with strong net profit of RM27.01 million, noting an 11% increase from RM24.35 million in FY2012.

Basic earnings per share was 12.38 sen in FY2013 versus 11.51 sen previously, based on a share capital of 222.00 million shares of RM0.50 par each.

Masteel’s balance sheet remained healthy throughout FY2013, as shareholders’ equity increased to RM553.28 million from RM525.88 million previously. The Group’s FY2013 cash and cash equivalents stood at RM60.40 million, a 10.5% rise from FY2012’s RM54.68 million. Total borrowings increased marginally to RM289.21 million from RM283.73 million a year ago.

With this, the Group improved its net gearing to 0.41 times in FY2013, from 0.44 times previously. This allows us the flexibility to implement any additional business expansion, as and when such opportunities arise.


Masteel has consistently paid dividends since listing in 2005.

The Group declared its first interim single tier dividend of 0.5 sen per share in respect of FY2013, which was paid out to shareholders on 11 October 2013.

Subsequently, the Board declared a second interim single tier dividend of 0.5 sen per share, which was distributed on 12 May 2014.

Furthermore, the Board has proposed a final single tier dividend of 0.5 sen share for shareholders’ approval at the forthcoming Annual General Meeting.

If approved, this will bring the Group’s total dividend to 1.5 sen per share in respect of FY2013, amounting to RM3.28 million in dividend payout.

Corporate Social Responsibility (“CSR”)

Over the years, Masteel has committed to various welfare activities, for the purpose of enhancing the well-being of our community.

In FY2013, the Group reiterated our support for the “Meals-on-Wheels” programme organised by Ti-Ratana Penchala Community Centre, a non-profit charity organisation. Masteel sponsored the operational expenses of the van used to carry out humanitarian activities, including delivering groceries to the poor, conducting free health checks for refugees, and bringing cheer to festive celebrations held in welfare centres.

Additionally, we were also involved in the upgrading of a local school in Serdang, Selangor. Masteel assisted the school by providing advisory services in the aspects of design, construction and cost planning. The Group also contributed financial support towards the school building fund.

We view these efforts as small yet significant steps towards enhancing the well being of the society at large.

Corporate Governance

The Board of Directors of Masteel is constantly mindful of and wholly committed to implementing best practices in corporate governance. As a Group, we look to achieve business sustainability and profitability, towards continuously improving and protecting shareholder value.

To this end, the Board endeavours to ensure that employees uphold the highest possible standard within every aspect of Masteel’s operations. The measures undertaken by the Group in this respect are detailed in the Corporate Governance Statement of this Annual Report.


I would like to take this opportunity to express my deepest gratitude to my fellow Board members, the management team and all employees working in Masteel. The Group’s achievements today are the fruits of our collective hard work, dedication and diligence.

I would also like to extend my highest appreciation to our valued shareholders, business associates, customers, regulatory bodies and many others who have partnered the Group throughout FY2013. We look forward to have your continuous support for the years to come.

Thank you.

Dato’ Ikhwan Salim Bin Dato’ Haji Sujak

2012 Annual Report: Managing Director/CEO’s Statement

Tuesday, July 9th, 2013

Financial Year 2012 Overview

In a year impacted by lower selling prices and the import of cheaper steel products, Masteel remained one of the few domestic steel players who displayed resilience.

Furthermore, for FY2012, the Group recorded a historical achievement, our best-ever revenue to date, when we posted a 4.7% increase in topline to RM1.3 billion. This was achieved mainly due to higher sales volume in the local market.

The rollout of many Economic Transformation Programme (“ETP”) initiatives during the year under review has been a growth catalyst for the local construction industry, which – in turn – spurred demand for steel bars.

Exports, however, remained challenging, contributing less to topline, RM221.7 million in FY2012 versus RM434.2 million previously. This was largely due to heavy competition in the overseas marketplace.

Masteel’s continuing investments in new technologies and processes allowed us to weather the turbulence within the steel sector relatively well. Additionally, a strong management team has also helped us side-step issues that have impacted negatively on other peers.

This allowed the Group to sustain a commendable net profit at RM24.3 million in FY2012, compared to RM24.4 million previously.

Growth Strategies

As Malaysia moves closer towards 2020, and its target of transforming itself into a developed nation, the demand for steel bars that are needed for nation-building projects can only trend upwards. As the countries around us continue to prosper and develop, steel bars will be needed for infrastructure upgrading works for some time to come.

To meet with this expected demand, Masteel invested approximately RM200.0 million to grow our meltshop capacity to 700,000 metric tonnes (“MT”) of steel billets per year from 550,000 MT previously. The upgrading of this facility in Klang, Selangor, is scheduled for completion in December 2014.

The Group is also building our second rolling mill adjacent to the meltshop. This new facility, which is slated to go operational in mid-2014, will boost Masteel’s annual steel bar production capacity to 550,000 MT from 350,000 MT currently.

These new capacities will allow the Group the flexibility to both meet existing and expected future local and regional demand, as well as to seek out new export destinations for our steel products.

Lastly, for FY2013 and beyond, Masteel will continue to seek out other synergistic opportunities that can enhance the Group’s core business so that we can bring additional value for our shareholders.

Corporate Updates

  • RM500.0 million Offtake Agreement with Trafigura Pte Ltd

On 27 June 2012, Masteel announced the signing of a RM500.0 million offtake agreement between the Group and the world’s second-largest commodities trader, Trafigura Pte Ltd, which will see us selling steel products to the latter over a three year period.

The agreement, which is expected to contribute positively to earnings from FY2013 onwards, will not only provide export income for Masteel but also see Trafigura taking up some of the Group’s new excess capacity.

  • MCN Receives Depot Land Offer

Masteel remains committed to our joint-venture (‘‘JV’’) with KUB Malaysia Berhad (“KUB Malaysia”), Metropolitan Commuter Network Sdn Bhd (“MCN”), to supply and operate a top-of-the-line rail transport network interlinking the various towns and cities within the Iskandar Malaysia economic corridor and Woodlands, Singapore.

The Group believes strongly in this RM1.3 billion proposal, which is being considered by the relevant Malaysian Government bodies, as it is expected to generate recurring income for the JV partners over a 37-year concession period.

A breakthrough was made on 6 November 2012 when MCN was offered a 14.3 hectare plot of land owned by Perbadanan Aset Keretapi (“PAK”) in Kempas, Johor, by the Ministry of Transport Malaysia (“MOT”) for the construction of the JV’s proposed Iskandar Malaysia commuter train depot.

MCN has submitted the necessary applications to PAK for the plot in question, which is seen as sufficient for the site of the depot.

On 18 December 2012, MCN received a letter from MOT to confirm its agreement to our project in Iskandar Malaysia.

  • Private Placement of Shares

On 9 November 2012, Masteel announced the private placement of up to 31.6 million shares of RM0.50 each, or approximately 10% of the Group’s issued and paid-up share capital.

Around 7.2 million shares were issued under this corporate exercise at an issue price of RM0.86 per share, which raised RM6.2 million for our working capital needs.


Masteel is optimistic on the state of the local steel industry and the Group’s own prospects in 2013.

The initiatives by the Malaysian Government to curb the importing of certain cheaper steel products into the country is expected to improve the pricing of the domestic steel sector and enhance the income of the Company.

The estimated RM150.0 billion worth of ETP projects slated to rollout this year – such as the KL MRT, the Tun Razak Exchange, the Light Rail Transit (‘‘LRT’’) extension and the 1Malaysia People’s Housing (‘‘PR1MA’’) programmes – will drive the demand for high-tensile steel bars that is produced by Masteel.

For example, on 9 November 2012, Masteel won a RM6.7 million contract from the Mass Rapid Transport Corporation Sdn Bhd to supply Grade 500 high-tensile steel bars to several KL MRT sites – namely V1-Sungai Buloh, V2-Kota Damansara and V5-Cheras.

This was the Group’s first order for this particular ETP initiative and, since then, given our exemplary track record in producing high-quality steel bars, we have continued to supply to the project.

Additionally, we are optimistic of the regional demand for steel bars, which are required by Malaysia’s neighbours for their own nation-building initiatives. With Masteel’s CAPEX initiatives in place to expand our steel billets and steel bars production capacities, the Group will have the flexibility to tap into more opportunities within both the domestic and regional markets.

Our strategic location within the Klang Valley – where many ETP projects are rolling out and where we are close to an established land, sea and air transportation network – accords to Masteel distinct advantages.

Notwithstanding the bright prospects in the local market, we are certainly circumspect of the challenges ahead. This includes the state of the global economy, which can have a negative trickle-down impact on steel bar consumption.

However, given the strategies we have implemented, the strong fundamentals of Masteel and the positive overall outlook, FY2013 is expected to be a promising year for the Group.

Dato’ Sri Tai Hean Leng @ Tek Hean Leng
Managing Director/Chief Executive Officer

Investment Merits

Monday, January 31st, 2011

Investor Briefcase

Monday, January 31st, 2011

1Q22 Financial Results (26 May 2022)

2021 Annual Report (29 Apr 2022)

4Q21 Financial Results (25 Feb 2022)

3Q21 Financial Results (24 Nov 2021)

2Q21 Financial Results (28 Sep 2021)

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Word from Management

Monday, January 31st, 2011

“In our 40 years of history since establishment, Masteel  has emerged as one of the top 5 integrated steel mills in Malaysia supplying international-quality steel products to the local and global markets… We will continue to invest in new technologies to enhance our production capability to generate superior shareholder’s returns… “

Dato’ Sri Tai Hean Leng, Managing Director & CEO

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