without impairment loss, it has already breakeven on last qtr at 50% utilization rate...

even air asia can run up to 1.19 from 0.90...

this jewel price is truly misplaced

sifu, you forgot to mention who are the upstream, downstream players...and who benefits most from the permanent effect of Iron Ore price decline due to China pollution control..

ok thanks

guys how u derive 8%?

Posted by rohank71 > Oct 3, 2021 10:42 PM | Report Abuse

court documents already submitted so in 2.5 to 3 months payout. thats 8% or more..

Mrbusiness sharing of the below, shows even the premium of steel billet over scrap steel is ~ RM 1000. Any steel makers including EAF routes (which Annjoo is flexible to utilize) should be able to make plenty of margins...

https://malaysiasteelinstitute.com/

@keep going, good question there..

coal usage is half the tonnage of Iron Ore used to produce via Blast Furnace method. The reduction on Iron Ore cost far outweighs the rise in Coal cost presently.

The coal price rose steeply only in mid of sept while iron ore dipped on end of July. This means at any point in time, the cost of production is lesser than quarter ending July 21'.

Good thing is MCO forced them not to operate in July and wait to take advantage of steeply cheaper Iron ore cost in August.


Iron ore price decline is much permanent (its a permanent pollution control which wipes out its demand, supply is always there) than the temporary coal price rise due to shortage of coal - Australia has plenty and just waiting for China to let go their ego and buy....

Till 2015 (for many years), China was a pain in the ass for local steel players due to price dumping on their exports...then we had things improving (lesser dumping by China) and megaprojects planned locally by 2017....then we had so much political twist and then covid.

CHINA was the biggest equation....

I believe with China actively importing, it should be clear blue sky for local upstream steel players from now on..at least for another 2 years as Annjoo Lim put it on his interview above.

Local steel price are truly in line with China (being the major consumer of our steel now):

http://www.sunsirs.com/uk/prodetail-927.html

Malaysia is exporting 60% of their steel products to China (as per Annjoo's Lim info in May 21)'. I believe with the force cut down on steel output from China now, they will be importing even more.

China's present power constrain issue & Evergrande issue on the steel consumption is purely a sentiment issue on demand, and its a temporary blip.

The price decline on iron ore due to pollution control is permanent & long term advantage to BF steel producers.

Extremely informative video: May 2021 by Annjoo

https://www.youtube.com/watch?v=eMdmVZcE1r8

Essential Minutes:

0.29 - 0.34 (5 min) - to understand type process
1.06 - 1.13 (7 min)
1.38 = 1.50 (12 min)

@Kevin asp of steel products would not be able to adjust as much as the decline on raw material Iron Ore as all of local players except Annjoo & Eastern Steel use EAF method (100% relying on scrap steel) unable use Iron Ore as their raw material.

This phenomenon is the same in China (BF method where uses Iron Ore) has been disabled from operation due to pollution concern permanently.

Its this China's inability to use iron ore as raw material for steel making is the real reason why iron ore price had declined.

Extremely informative video: May 2021 by Annjoo

https://www.youtube.com/watch?v=eMdmVZcE1r8

Essential Minutes:
0.29 - 0.34 (5 min)
1.06 - 1.13 (7 min)
1.38 = 1.50 (12 min)

asp of local billet and rebar had been uptrend from june till end of sept and now from MITI publishing

it also shows iron ore rapid price decline from july..

Kenanga bullshit a lot - nothing said on Iron Ore price decline. Inventory of Annjoo at the end of June maintains the same as end of March. Its pure lie saying inventory usage.

Truth will reveal itself..

Mr. Koon, buy Annjoo too since it owns 100% of it businesses and has a dividend payout policy of 60%.

Hiap Teck, though may be able to make explosive profits from Eastern Steel with its rising throughput, at 35% stakes it may not be able to dictate the payout (like in JAKS situation, placed in a sea of money but unable to drink).

Mr. Koon, buy Annjoo too since it owns 100% of it businesses and has a dividend payout policy of 60%.

Hiap Teck, though may be able to make explosive profits from Eastern Steel with its rising throughput, at 35% stakes it may not be able to dictate the payout (like in JAKS situation, placed in a sea of money but unable to drink).

“We expect China’s crude steel production will fall over the long term,” says Steve Xi, a senior consultant at research firm Wood Mackenzie. “As a heavy-polluting industry, the steel industry will remain a key sector in China’s environmental protection work in the next few years.”

Why are steel prices so high when iron ore prices have crashed? Because: China

https://qz.com/2060156/chinas-cuts-have-made-steel-prices-soar-and-iron-ore-prices-crash/

China’s squeeze of the world’s supply of steel suggests that shortages of many products will continue until the post-pandemic demand and supply stabilize.

Car companies, for instance, are already trying to cope with a crunch in the supply of semiconductor chips; a Ford executive told CNBC that steel, too, is now part of a “new crisis” of raw materials.

In 2019, the US made 87.8 million tons of steel, according to the World Steel Association—less than a tenth of China’s 995.4 million tons of output. So while American steelmakers are now making more steel than they have since the 2008 financial crisis, it’ll be a while before they can fill the shortfall that China’s cutbacks will create.

Why are steel prices so high when iron ore prices have crashed? Because: China

https://qz.com/2060156/chinas-cuts-have-made-steel-prices-soar-and-iron-ore-prices-crash/

60m - 66/3 (excluding write back of impairment) = 38m PAT for the current qtr

Its still superb...

its one third of the 66m i guess that is contributing to Hiap Teck

Unbelievable...despite 2 months shutdown!

Walao eh...fantastic results!!

@information, well said.

product ASP:

http://www.sunsirs.com/uk/prodetail-927.html

raw mat ASP:

https://markets.businessinsider.com/commodities/iron-ore-price

https://www.theedgemarkets.com/article/ann-joo-achieves-cost-leadership-among-steel-players

Ann Joo has become one of the most cost-efficient steel players after it successfully developed and incorporated the hybrid blast furnace-electric arc furnace (BF-EAF) technology into the steel production flow. This BF-EAF technology allows Ann Joo to enjoy better cost control in raw-material input and operational flexibility through adjusting the usage of the feedstock such as iron ore, coke and scrap metal for manufacturing of steel products. The flexibility in switching the ratio of feedstock enables the group to manage the input cost efficiently based on the market-price fluctuation of the raw materials. In addition, the off-gas that is produced during the manufacturing process can be used to support the rolling-mill process instead of using natural gas, which can help further lower total cost of production. Hence, the group has achieved cost leadership through cost optimisation in production, which helps it produce relatively cheaper steel products with better margins in comparison with other domestic players.

Every automotive OEM operates a little bit differently. However, in general, automotive OEMs purchase their steel more or less along these lines:

-1. RFQs for the next calendar year are sent by the OEMs, typically in August or September, based on current market conditions. Deals typically get negotiated and signed between then and the end of the year but can be as late as January.

2. New contract pricing goes into effect Jan. 1 of the following year.

3. OEMs have used multiple negotiation strategies with some using “should-cost models” and guaranteeing volume in exchange for a fixed price and others negotiating a discount off a published index price in exchange for volume (also at a fixed price).

Moreover, in response to RFQ requests this year, steel producers have taken a more divisive approach to negotiations. We have heard that, in some cases, automotive OEMs have two weeks to sign or risk not having supply.

agmetalminer.com/2021/09/27/automakers-see-2022-steel-prices-contract-negotiations-looking-brutal/

https://www.straitstimes.com/asia/east-asia/biontech-covid-19-shot-produces-10-times-more-antibodies-than-sinovac-study-finds

SINOVAC is only 51% effective, even with high vaccination rate, vaccinated will keep transmitting to the vulnerables and we dont want that...it will cause economy opening delayed too long

https://www.bbc.com/news/world-asia-china-57817591

The WHO said studies showed the Sinovac vaccine "prevented symptomatic disease in 51% of those vaccinated and prevented severe Covid-19 and hospitalization in 100% of the studied population" for adults aged 18 and older, when it approved the jab in June.

Now the govn is coming to their senses and stopping Sinovac and going for high efficacy Pfizer (kinda late realization actually, but better than not waiting for full vaccination and seeing hopeless results)

tomorrow show SD (HULK) vs KPMG (abomination)

https://www.youtube.com/watch?v=0YjiUaidwhI

59 days......of silence and quietly go and report to SC kah?

SD is turning into HULK tomorrow...

dont la speculate this and that...you guys will make SD angry again

dont allow SD to become HULK

more you poke...the more it will trigger

Mohamed Ilyas: I don't know where you get your information from, but I think you should verify your information. If KPMG can mislead our directors, Bursa and the SC with trivial issues, I don't think we are supposed to work with them anymore. This is why we took the decision to take legal action on them.

I can see KPMG really got to the nerve of SD....

Why is Serba Dinamik suing KPMG?

Shafee (legal counsel): We found no infringement of law or non compliance of provision. The key content is missing for KPMG to do whistle-blowing to the Securities Commission Malaysia (SC). As a result of unfavourable red-flagging of issues, the SC acted purely on what KPMG said and raided the premises of this company

https://www.theedgemarkets.com/article/what-serba-dinamik-says-its-audit-issues-today

Mohamed Ilyas (chairman): KPMG has been negligent for many times, and kept the company in a lurch for 59 days [without response]. There is negligence, plus the red flags on trivial issues.

...

why KPMG became so angry with SD?

merajuk sampai tak respon..

https://www.theedgemarkets.com/article/what-serba-dinamik-says-its-audit-issues-today

Mohamed Ilyas (chairman): KPMG has been negligent for many times, and kept the company in a lurch for 59 days [without response]. There is negligence, plus the red flags on trivial issues.

...

why KPMG became so angry with SD?

https://www.klsescreener.com/v2/news/view/844639/what-serba-dinamik-says-on-its-audit-issues-today

Post removed.Why?

1. INTRODUCTION

The Board of Directors of SDHB wishes to inform that the Company, had on 22 June 2021,filed a Writ of Summon together with the Statement of Claim at the High Court of Malaya at Shah Alam against KPMG.

2. PARTICULARS OF THE CLAIMS UNDER THE WRIT OF SUMMON AND STATEMENT OF
CLAIM (“SOC”)

The claims pursuant to the Writ of Summon and SOC are as follows:

(i) General Damages to be assessed;
(ii) Punitive damages;
(iii) Aggravated damages;
(iv) Interest at the rate of 5% per annum on such damages as may be awarded in
favour of the Plaintiff from the date of filing of this Writ until the date of realization;
(v) Costs; and
(vi) Any such further or other reliefs that the Court deems fit.
The claims were made after taking into consideration the following loss and damage:
(i) A loss of RM4,933,800,223.74 in SDHB’s market capitalisation;
(ii) A loss of confidence in the market from SDHB’s shareholders, investors, and
financial institutions; and
(iii) A loss of confidence with SDHB’s customers, domestically and internationally.

3. CIRCUMSTANCES LEADING TO THE SUIT

The circumstances leading to the filing of the Writ of Summon and SOC by SDHB is based on SDHB’s contention that KPMG had failed and/or neglected to complete the audit report until and unless a 3rd party independent reviewer is being appointed and complete the findings as
raised by KPMG. Ultimately in June 2021, KPMG had suddenly changed their stance.

SDHB contends that the findings raised by KPMG were not substantive in nature that warrants an independent review and that the issues faced by KPMG were entirely attributable to their own negligence in the course of the audit process.

At this juncture, SDHB is of the view that KPMG’s act of halting the audit process pending a 3rd party independent review was in the circumstances negligent as it would have delayed the preparation of the audit report and would under normal circumstances create unnecessary speculation in the market.

For the avoidance of doubt, the findings raised by KPMG has been announced on 28 May
2021.

that is the reality

Posted by information > Jun 22, 2021 7:55 PM | Report Abuse

even if what Leno said is true, the point is SD is maneuvering the game such that they will win

what market care is who wins, not who is truthful

later how if KPMG resort to settle this out of court and complete the audit report?

ya, we dont know....just giving benefit of doubt to SD sincere they are so confident now...

Posted by gohkimhock > Jun 22, 2021 6:36 PM | Report Abuse

@probalility how do you know KPMG did not liaise with the client? Now all words are from Serbadk side.

and can KPMG refuse to conclude audit without following SD's request to meet or talk to their clients?

Does GAAP says no need to talk to the clients?

Posted by gohkimhock > Jun 22, 2021 6:32 PM | Report Abuse

If KPMG does the audit in accordance with generally accepted accounting principles (GAAP), Serbadk will not going to win this civil suit..