RM vs USD appreciated by 1.5% today. It will provide some force to push up price tomorrow.

USD to RM strengthen to 3.95 due to strong US employment data today.
Buy and hold those benefit from USD and export business like glove and furniture stock.

Topglove, Kossan and Harta, all three stocks share price above average target price except Supermx which still below the average target price. Accumulate at current level with lower risk compare to other glove stocks. IMO.

Some advice from my remiser after discussion.
Accumulate this share around 2.00 (support) and wait for rebound. It could be soon or later. Accumulate at current price is low enough to get handsome return in future. Dont bother about it for hovering around at current level. Downside risk is low and upside chance is high.

Masteel will suspend for trading start from tomorrow till further notice.

Still no announcement yet, last chance on next Monday. Lost or Win will be decided on next Monday...

No news about extension approval by bursa mean standard practice for suspension unless otherwise. At this moment no news mean bad news cause it is in countdown for release for audited account left few days. Two good news could be announced at this moment, approval to extend release of audited result and audited result available before 12 May.

Reading the Annjoo report could have better picture about steel industry with figures and fact support. Local steel price tumble in 2014 and dumping steel from China increase significantly.

http://www.annjoo.com.my/investor-relations/latest-news/

Commments from Masteel about the steel industry demand and prospect seem like quite optimistic and deviated from overall market condition. It could be Masteel very efficient, well manage and resilient to tumble of steel price with good cost control.

As per FY 2013 report chairman comment about the china imported steel failed to make significant headway to domestic market with import quantity remain low but there is huge jump in import quantity Steel in 2013 unless the Masteel's bar is different from imported steel bar.
It could be MRT project and local construction at Klang valley help to absorb a lot of Steel demand. Outside malaysia Revenue for Masteel reduce from ~ 8% in 2013 to ~ 2% in 2014. The revenue figure showed that export business is reduced and it is offset by strong local demand for steel.

I read the prospects and comments about the capacity expansion for this company for the past quarterly results and i still cant conclusively understand the expected capacity plan in future.

At 3Q'13 report press release, it stated will expand the capacity of Petaling roll mill plan to 550,000 MT /pa by 2015.

Masteel is in the midst of expanding its rolling mill in Petaling Jaya, which now
sees an annual production capacity of 400,000 metric tonnes (MT), up from
350,000 MT previously. The enlarged mill is expected to reach an annual
production capacity of 550,000 MT upon completion in 2015.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4199125


At Q2'14 quarterly report, it report the new roll Mill factory at Klang with 200,000 MT/pa Capacity

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4177321

At Q3'14 quarterly report, it report the new roll Mill factory at Klang with 300,000 MT/pa Capacity
is expected to be completed in 1st half of 2015

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4178961

The more i read about the expansion plan, the more i confuse on it.
Hope that it is a description and classification error in the reporting.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4236209

PROPOSED RENEWAL OF SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE

A bit uncomfortable always saw this RRPT keep renew every year and most of the Directors have interested in this company. Not sure the intention of renew RRPT since no transaction going on.

There is a risk for trading this stock at this moment, As i know Bursa so far never approve the extension of release of annual report without suspension. if it can't release it by 11 May'15, it will be suspended for trading till audited report release. IMO.

http://www.themalaysianinsider.com/business/article/kinsteel-perwaja-officials-have-no-idea-on-share-price-volume-surge

Renew interest in steel company.

https://www.cari.la/jobs/keyword/malaysia+steel+works+%28kl%29+berhad

http://www.masteel.com.my/contact/career/

Anyone interested to apply job at Masteel and go there take a look what going on..

I checked the Total long term loan and short term (related to bank loan) from Dec' 2009 till Dec' 2013 (audited account) it only increased from 264 mil to 289 mil which is not significant and gearing remained consistent around 0.5 from '09 till '13 audited accounted. Asset expansion is mainly used the profit generated from operation and with low dividend distribution. Look like the Balance sheet and Asset quality is look healthy based on previous audited account till 2013.

http://www.thestar.com.my/Business/Business-News/2015/02/21/Steel-mill-boon-for-Masteel/?style=biz

Business related :
“Masteel has seen steady income because about 33% of its steel sales is for the development of the mass rapid transit (MRT) project.”

Chong notes that Masteel’s plant in Petaling Jaya gives it a cost advantage for the MRT works that are carried out within the area.

http://masteel.investor.net.my/

http://masteel.investor.net.my/corporate-presentation

Quite a good website about the Masteel. The new roll mill plant to be completed in mid 2015 to increase roll mil Cap to 550 MT in 2015 and 650 M/T in 2016.

I just run through some of the FY Annual report, there is reclassification done by group from working capital-in-progress to Plant and machinery as assets. As per Dec 2013, there is RM 24,112,000 working capital-in progress carried to Jan 2014. I think they did some reclassification in 2014. No reclassification done on 2012 and 2013, there is reclassification in 2011. Could be this is reclassification there referred to and issue raised by Auditor. The other new thing in 2014 report is deferred tax liabilities that new to Masteel in 2014, this could be due to depreciation of asset adjustment to match the income tax practice.. Not sure any problem for this item also ...
IMO.

"The issues pertain to the classification, description and recoverability of various transactions carried out by the Company in FYE 2014". Seem like it is related to some transactions happened in 2014 and it is NOT overstated of revenue or inflated profit or financial fraud. External Auditor may not able to access the various transactions with support or strong evidence to conclude it. Special review by UHY could help to confirm the impact or evidence for these various transactions and provide opinion for the audited report. IMO.

The company is ok .
I think is related to accounting practice and reporting figure need to be explained with Standard Practice. If the evidence is not enough to support it, it will do some adjustment in the audited report to correct it. You can see from MPCORP special audit report, there are few items need to adjust after audited report.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1099133

Reviewed the example of MPCORP special auditing report is a good example and understand what could be happen in Masteel but in better position since there is no payment default compare to MPCORP. Masteel is in cleaner position.

MP corp example :

Special auditing report
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1099133

Unaudited report :
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4180285

Audited report after adjustment after special auditing :
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4203461

By comparing the audited and unaudited Profit and loss account - no change
By comparing the audited and unaudited Cash Flow - no change
By comparing the audited and unaudited Balance sheet - Some adjustment after auditing the report and confirm the verified disclaimer of opinion with evidence. Adjustment within balance sheet figure but NTA remain close for both.

Therefore, this could affect the balance sheet statement rather than other 2 other statements.

While for the Masteel,

It mainly related to the classification, description and recoverability of various transactions carried out by the Company in FYE 2014.

After auditing by special independent auditor, it will confirm the balance sheet figure pertaining to
statement above issue raised by external auditor with evidence.

This could be the reason they hire a independent auditor for special audit the issue raised by external auditor "the classification, description and recoverability of various transactions carried out by the Company in FYE 2014" and make adjustment and passed it back to external auditor to issue a audited report.

In the case, i feel that this issue is managed wisely by Masteel and try restore confident
with correct process on issue raised by external auditor for the audit report without hiding.

IMO only. I just analyse based on info collected from KLSE website and some comparison and use for your reference only.

FYI..

is a Disclaimer of opinion not Adverse opinion

Adverse opinion represents the most serious type of nonstandard audit report.

http://www.oag.govt.nz/2007/cg-2005-06/part4

Disclaimer of opinion

4.113
A disclaimer of opinion is expressed when the possible effect of a limitation in the scope of the auditor's examination is so material or pervasive that the auditor has not been able to obtain sufficient evidence to support, and accordingly is unable to express, an opinion on the financial report.

The issues pertain to the classification, description and recoverability of various transactions carried out by the Company - could be related to debt recovery. IMO

Most likely, Tuesday, they will issues a statement to clarify the issues before market open.

Summary :

Messrs Nexia SSY, the External Auditors of the Company that they are not able to express an opinion on the financial statements of the Company for FYE 2014.

Masteel is engaged UHY Advisory (KL) Sdn Bhd (“Special Auditors”) to conduct an independent and comprehensive review of the issues raised by the External Auditors in order to facilitate the External Auditors’ provision of an opinion on the financial statements of the Company for FYE 2014 (“Special Review”).

Further to our announcement, we wish to clarify that the reason for the delay in the completion of the audit in relation to the financial year ended 31 December 2014 (“FYE 2014”) and the release of the audited financial for FYE 2014 (“AFS”) is that the Board of Directors of the Company (“Board”) has, on 29 April 2015, been informed by Messrs Nexia SSY, the External Auditors of the Company that they are not able to express an opinion on the financial statements of the Company for FYE 2014 due to various issues raised by the External Auditors to the Audit Committee and the Board on 27 April 2015. The issues pertain to the classification, description and recoverability of various transactions carried out by the Company in FYE 2014, which were only made known by the External Auditors to the Audit Committee and the Board on 27 April 2015.

As such, the Board has taken the initiative to engage UHY Advisory (KL) Sdn Bhd (“Special Auditors”) to conduct an independent and comprehensive review of the issues raised by the External Auditors in order to facilitate the External Auditors’ provision of an opinion on the financial statements of the Company for FYE 2014 (“Special Review”). The Special Review is expected to be completed in six (6) weeks. The Board will be making an application to Bursa Malaysia Securities Berhad to seek an extension of time up to 30 June 2015 to issue the AFS 2014.

A good management team will plan for future and growth of the company like expansion and new project. if the management want the company in bad shape they wont waste so much time doing all this work instead plan how to dig money out from there. Exercised of the warrants mean also pump in money to the company and increase their holding of the company too and show confident to the company future and prospects. IMO

Masteel was awarded the “BestBrands Award 2012-2013 in Manufacturing – Steel”,
“BestBrands Signature Award 2013-2014 in Manufacturing – Steel”, and Masteel’s
MD/CEO Dato’ Sri Tai Hean Leng was awarded the “Brand Personality Awards 2012-
2013” by The BrandLaureate.
In 2014, Masteel was ranked number 75 in the list of Malaysia’s Top 100 brands
compiled by Brand Finance Plc U.K, valuing the Masteel brand at USD26 million (RM
92.3 million).

Masteel brand value at usd 26 mil, intangible asset but not recorded in balance sheet.

I also read about comment for prospect for the following quarter (Q1"2015) at Q4 2014 financial report, they are quite optimistic that following quarter will perform well and 2015 will perform better than 2014 due to capacity increase and infrastructure mrt and government major construction project on track.

I just read the final quarter report end 31 Dec 2014. I wonder is the audited report need more info could be related to reduce inventory by around 50 mil and increased in debtor or receivable by 90 mil in Q4 2014. After checking with Annjoo q4 2013, similar increase of 100 mil debtor or receivable. Is this normal for steel industry has sudden increase of receiveable to clear stock. By comparing inventory of annjoo with more than 1 bil and masteel with around 200mil, it is quite well managed inventory control by Masteel..IMO.

http://www.futuresmag.com/2015/03/04/saudis-raise-crude-prices

Afren and Armada perkasa is 2 year extension contract worth RM 221 mil. Which is small portion compare to their total outstation order. This is different between small and big company. Armada can weather this kind of bad news. As mentioned in the quarter report, they already taking precaution step on this matter to reduce the impact. Big corporation has advantage handle different situation and sail across it and become stronger in future. Learn from experience will make someone better and stronger in future.

國油致力轉虧為盈‧油氣股前景向好

http://biz.sinchew.com.my/node/111202

If you read the quarter report, there are 3.3 billion cash on hand. Ak can borrow 1mdb 2 b (cash) - if this is true.Both Armada and big boss are cash rich. Therefore, no strong cash flow mean too much cash? Sometimes it is good to check the fact before comments.

Today enter some long position to average down the share price.

The management has indicated that the group will embark on cost optimisation measures to enhance its efficiency and productivity, which would include headcount reductions, divestment of certain low-yielding T&I assets and exit of the oilfield services segment. Do inform that there is suspected armada employee in this forum, very free and active in this forum and busy report a lot of bad news in this forum, do not focus in its work should be fired to improve the company productivity.

C7 - due to the cost of additional work scope of ~RM50mil in the T&I division for the FPSO installation in the C7 field in India. We understand that the group has submitted the variation orders (VO) for the additional work done and will likely receive compensation by 1QFY15. It mean there is extra scope need to pay by customer for C7. Anyway this high level information wont be known by low level employee armada who though the c7 project got problem, keep reporting there is problem in this forum. IMO.

Seem like EPF reverse selling to purchase Armada, small player could be one selling and big player could start to accumulate.

Sound a bit illogical comment, seem like armada management team don't know what going on, sitting there and let the company collapse. Use your brain think first before comments.

Fyi..  the group’s firm order book of ~RM24.5bil (with extensions of up to RM13bil). Armada is not just has one C7 project. It back by strong order book. Look as a whole not just c7 which someone seem like know a lot what going on in details.

C7 is a joint venture company.
Bumi Armada’s 50:50 joint venture (JV) with Shapoorji Pallonji and Co. Ltd. (SPCL) of India has been awarded a charter contract potentially worth US$1.1billion to provide an FPSO vessel for India’s Oil and Natural Gas Corp. Ltd.’s (ONGC) Cluster-7 field.
Seem like Armada only has one project which is C7 and there is no other business and if there is problem in the C7, the whole company is in big trouble. With a such a experience and establish company, do you think it cant solve the problem and leave it.

As a logic thinking, "as usual TATA will make use of top key Ateam to create more disaster know down price to xx-cents.". Will a big company let a small group of pp create this thing happen. Sound a bit funny. Take a look at the management . http://www.bumiarmada.com/88_87_87/Web/WebPage/Management-Team/About-Us.html

If TATA company bought over Armada, this is good news. India is hungry from energy and TATA is India big conglomerate. It will help to expand and growth Armada business. Thanks ogt8989 for sharing the good news.

The previous technical expert who know armada well comment about their projects got problem
Now appear another financial expert that the account can manipulate here and there, cover here and there.. if like that the external auditor for Armada can close shop liao cause they cant detect so many problem in the company and so many cover up here and there. Armada " internal experts"in this forum, think and write as an professional dont just write like as "internal expert".

Seem like there are a lot of expert from armada (could be employee) who know inside out of this company so well and disclose a lot insider info. But those pp seem like don't like the company and continue stay in the company, get salary and disclose info in this forum. IMO.

I look at quarter report and understand that the losses are mainly drag by exceptional items, which normally one off case or case by case basis and didnt notice any disaster for it. I feel comfortable to own a company that control by second richest man in malaysia. If he is not capable, how he can own so much wealth.

Armada share price reacted steadily on the quarterly result announcement. Worst is over and time for management to rectify the problem and make the company stronger and more profitable in future. One time failure doesn't mean fail forever but it create a chance to buy good company at lower price and earn higher return once it back on track. Smart investor will invest good company when it is in crisis and start to restructure. At that time you can own a good company at lower investment cost. Warren Buffet accumulate more share for good company during crisis. Crisis is an opportunity. Follow market trend is just a normal investor who make normal profit.

Hard to predict result and share price before result announcement..felda price going up till before result announcement..result announced very bad and next day share price drop like hell. Armada share price already factor in bad result, if result not as bad as it is..share price will rebound..that what my remiser told me..

Heading to rm 2.86 http://klse.i3investor.com/blogs/rhb/69352.jsp

EPF bought 4 mil share and dump 450k share..could it be a strategy sell little to push down and buy back at high volume in low price..

EPF reversed the disposed to acquired of FGV. They can buy back at cheaper price for those qty that they disposed.

CPO already rebound around 20% from the bottom and FGV still struggle at close to bottom price..it is time to accumulate this stock since worst is over and sunshine is ahead of it..

Weak ringgit translates to higher revenue for oil palm planters. http://www.thestar.com.my/Business/Business-News/2015/01/07/Boon-for-oil-palm-planters-Weak-ringgit-translates-to-higher-revenue-for-companies/?style=biz