29 January 2016 http://www.bursamalaysia.com/market/listed-companies/company-announcements/4990269 On behalf of the Board of Directors of the Company, SJ Securities Sdn Bhd (“SJ Securities”) wishes to announce that SJ Securities had on 29 January 2016 submitted an application to Bursa Malaysia Securities Berhad (“Bursa Securities”) for an extension of time from 31 January 2016 to 31 March 2016 for the Company to consider options for any Regularisation Plan.
3.5 cents share price only, market capital more than rm1.3billion(half of donation), but market value @ 3.5cts, jus less than rm40m, still got.new investor trust it and pump in capital ?
Megasteel seeks higher anti-dumping duties By Jose Barrock / The Edge Malaysia | February 3, 2016 : 7:00 PM MYT This article first appeared in The Edge Malaysia Weekly, on January 18 - 24, 2016
AILING flat steel producer Megasteel Sdn Bhd is looking to nudge the federal government into raising the anti-dumping duties on hot rolled coils (HRC) from China, according to industry sources.
In mid-February last year, the government imposed anti-dumping duties of 6.35% to 12.19% on HRC from China and a yearly review of these duties takes place in February, which is what Megasteel is banking on to get higher duties imposed.
The quantum of the increment Megasteel is seeking is not clear. The question is about whether the government is likely to pay heed to the steel maker’s urging.
“They (Megasteel) have tried many ways to seek protection and this is the latest. Other methods thus far have not been very successful,” a source says.
Megasteel is 69.79% controlled by Lion Diversified Holdings Bhd. The remaining 30.21% stake is held by Limpahjaya Sdn Bhd, a wholly-owned unit of Lion Corp Bhd. Both companies are controlled by businessman Tan Sri William Cheng Heng Jem.
The Lion group did not respond to The Edge’s attempts to speak to Cheng.
To recap, HRC is the raw material for flat steel, which is used to make household items such as fridges, washing machines and even cars, as opposed to long steel, which is used for construction. Megasteel has the monopoly on the supply of HRC in Malaysia.
In June 2014, the government initiated anti-dumping investigations after Megasteel filed a petition on behalf of the domestic HRC and flat steel producers. Megasteel had alleged that imports of HRC from China, Indonesia and South Korea were at a price much lower than local production costs.
Apart from HRC, the Ministry of International Trade and Industry (Miti) said anti-dumping duties would be imposed on imports of chequered coils from China and Indonesia at 15.62% and 25.4% respectively. Similarly, anti-dumping duties were imposed on imports of pickled and oiled coils from China and Indonesia at 15.62% and 20.56% respectively.
HRC from Indonesia was slapped with an 11.2% duty while South Korea was exempted from all forms of duty.
The measures were slated to be effective for five years with a review each year, in February.
While Megasteel has been looking to obtain protection, local steel players have been bleeding given the current tough operating environment. Downstream steel players are already grappling with the sharp depreciation of the ringgit against the US dollar, the 16.8% increase in electricity tariff — which translates into an increase of millions of ringgit in charges — plus other increments, for instance, a 31% hike in gas tariffs, the implementation of the Goods and Services Tax and the revision of the minimum wage, which significantly increases the labour costs.
One of many attempts at prolonged protection Late last year, Megasteel sought to get a safeguard action and sought a public hearing for safeguard investigations into imports of HRC. A safeguard action restrains trade and protects a particular industry or company — in this case, Megasteel — from foreign competition via restrictions on imports.
The public hearing to discuss Megasteel’s grouses was held on Nov 4 last year at Miti, but it came to naught.
In fact, from 1999, when Megasteel commenced operations, the government has imposed a 25% import tariff on HRC and has continuously assisted Megasteel. In 2002, the import tariff was increased from 25% to 50%.
In February 2012, Miti hired the Boston Consulting Group (BCG) to undertake a comprehensive study of the steel industry after several complaints suggesting a lack of competitiveness of local steel products. BCG’s
recommendations were made in July 2012, and gave a timeline of 2013 for Megasteel to sort itself out and start registering positive cash flow. This, of course, did not happen.
Late last year, Megasteel, as part of another attempt to obtain protection, sought to meet senior government officials to propose the setting up of a special purpose vehicle (SPV) solely to import HRC and even downstream products into Malaysia, say industry sources. The SPV is set to work in the same vein as Padiberas Nasional Bhd, which until recently held the monopoly on rice imports.
However, the meeting with the government officials did not take place last year. Since then, it has been unclear if the meeting had taken place at all or if Megasteel had put forth its plans for an SPV.
It is worth noting that Megasteel’s chairman is Tan Sri Rafidah Aziz, the former minister of International Trade and Industry.
Megasteel, an ailing company Although it is the sole HRC producer in the country, Megasteel receives protection from the government, which requires the cold rolled coil (CRC) producers to acquire a chunk of their raw material from Megasteel or pay hefty duties on imported HRC, or seek exemptions which are hard to come by.
However, other than high prices for Megasteel’s HRC, many CRC players are said to be facing quality issues, as they require HRC made from iron ore and not pig iron or scrap metal as used by Megasteel.
Downstream players are understood to be able to import CRC at a lower price than buying from the local CRC players due to Megasteel’s high HRC pricing.
However, even with all the protection, Megasteel has been bleeding. For its financial year ended June 2014, the company suffered an after-tax loss of RM416.76 million from RM2.26 billion in revenue. As at end-June 2014, Megasteel had RM1.53 billion in negative reserves. It had non-current assets of RM2.64 billion, current assets of RM673.38 million, current liabilities of RM3.8 billion and non-current liabilities of RM439.39 million.
In September last year, Lion Corp announced that Megasteel was unable to meet its debt obligations, which resulted in a cross default of RM3.02 billion in debt. Some of Megasteel’s borrowings are pegged with interest rates of as high as 15.6%, in contrast to the average of 6%, which partly explains the company’s problems.
KUALA LUMPUR: Customs officers have raided more than 10 steel companies, including four public-listed entities, in the past two days, stepping up efforts on curbing illegal imports of steel products, particularly hot-rolled coils (HRC).
According to industry players, this is an “unprecedented scale”.
It is understood that Customs officers brought along policemen in a scale of more than 20 personnel and conducted audit of multiple steel sites across the country to check if the imports of steel have followed the proper procedures.
“We are not sure of the reason for the raid in such [a] scale, [and] who initiated it,” an industry source told The Edge Financial Daily, adding that the raid may continue over the next few days.
According to the source, there were about four listed steel players, who are mainly involved in imported steel pipes, being raided. Meanwhile, another source said, it seems that HRC is the main target.
“Customs has the right to audit companies, but it is seldom that the customs officers would conduct an industry-wide raid. It’s the first time in such a big scale,” the source said.
The source added that there is nothing wrong for Customs to carry audits and take away documents to conduct investigations as Malaysia imports a substantial amount of steel, and the officers may want to check things like whether industry players are paying the goods and services tax, and declaring imported goods.
“This is quite a shock to [industry] players; it is intimidating. Such raids are normally conducted because of complaints about certain undeclared shipments, but even for smuggling, officers will narrow down to one or two companies,” said another source.
According to him, companies that have different subsidiaries were raided simultaneously this time.
When contacted, Malaysian Iron & Steel Industry Federation president Datuk Soh Thian Lai declined to comment.
However, a source revealed that the association is trying to find out the rationale for the massive raid.
Just last month, the local downstream steel players were relieved that the government decided not to impose safeguard duties, which had been requested by Megasteel Sdn Bhd, the country’s biggest HRC producer owned by tycoon Tan Sri William Cheng.
The local steel industry has been in conundrum for a long while. The upstream players are trying to seek safeguard measures imposed by the government to defend home turf. However, downstream players want to have a more liberalised operating environment, which offers more leeway to import raw materials, such as HRC.
Now the most important and urgent is Regularisation Plan to exit the PN17 status before the deadline. The extension to 31 Mar is still pending for approval.
馬國貿工部曾接獲國內鋼鐵製造商美佳鋼鐵公司(Megasteel Sdn Bhd)舉報,指該國於2012年至2014年自海外進口之熱軋鋼捲產品過多,導致該公司市占率下跌、銷售銳減、產量減少、產能使用率下降、流動資金不足及淨虧損。爰經貿工部調查,並初步裁決,認定前述熱軋鋼捲產品進口,「未造成或威脅重創生產相同產品的當地企業」為由,並向美佳鋼鐵公司提出的反傾銷申請,發出「負面初步裁決」。
MUKADIMAH Ketirisan hasil negara terus berlaku. Ia bukannya melibatkan jumlah yang kecil tetapi melibatkan berbilion-bilion ringgit dalam tempoh sekitar tiga tahun.
Apa yang diperkatakan hanya melibatkan tindakan licik sesetengah syarikat pengimport besi memanipulasi syarat dan sistem pengimportan dengan tujuan mengelak membayar duti anti-lambakan komoditi berkenaan.
Kerugian berbilion ringgit itu dianggarkan hasil serbuan yang dikoordinasikan oleh Pasukan Penguatkuasa Pemulihan Hasil Negara (NRRET) Jabatan Peguam Negara dengan kerjasama Jabatan Kastam Diraja Malaysia (JKDM), Suruhanjaya Syarikat Malaysia (SSM) dan Polis Diraja Malaysia (PDRM) di beberapa syarikat besi, baru-baru ini.
Persoalannya, bagaimana dengan industri-industri pengimportan barangan lain? Apakah ada jaminan modus operandi yang sama tidak digunakan? Dalam laporan khas kali ini wartawan Mingguan Malaysia, ZULKIFLEE BAKAR dan MOHAMMAD YASIR JAAFAR mendedahkan mengenai penyelewengan yang dilakukan oleh sesetengah syarikat besi dan kesannya kepada hasil pendapatan negara.
KUALA LUMPUR 27 Feb. - Kerajaan mengalami kerugian yang dianggarkan mencecah berbilion-bilion ringgit dalam tempoh tiga tahun kebelakangan ini berikutan kegiatan beberapa syarikat pengimport besi yang dikesan memanipulasi syarat dan sistem pengimportan dengan tujuan mengelak membayar duti anti-lambakan komoditi berkenaan.
Taktik licik syarikat-syarikat tersebut terbongkar dalam Ops Besi yang dikoordinasikan oleh Pasukan Penguatkuasa Pemulihan Hasil Negara (NRRET) Jabatan Peguam Negara dengan kerjasama Jabatan Kastam Diraja Malaysia (JKDM), Suruhanjaya Syarikat Malaysia (SSM) dan Polis Diraja Malaysia (PDRM).
Apa yang mengejutkan, dalam operasi serentak yang dilancarkan di wilayah utara dan Lembah Klang itu, kerajaan menanggung kerugian lebih RM150 juta, apabila 10 syarikat pengimport besi didapati melakukan kegiatan mengelak pembayaran caj duti anti-lambakan dalam tempoh 2013 hingga 2015.
“Jumlah itu dikesan melalui proses pengauditan yang dilakukan. Berdasarkan pengauditan itu, kita percaya jumlah kerugian dialami oleh kerajaan jauh lebih besar dan mungkin mencecah berbilion ringgit dalam tempoh tersebut memandangkan di negara ini terdapat 100 syarikat seumpama itu,” kata satu sumber dalaman kepada Mingguan Malaysia.
Menurut sumber itu, berdasarkan peraturan, syarikat pengimport bahan berkenaan wajib membayar cukai import serta duti anti-lambakan bergantung kepada jenis besi yang ditetapkan selain cukai barang dan perkhidmatan (GST) bermula April tahun lalu.
“Syarikat pengimport terbabit menggunakan pelbagai cara untuk mengelakkan daripada membayar duti anti-lambakan berkenaan yang ditetapkan oleh kerajaan demi melindungi industri pengeluar besi tempatan.
“Namun syarikat berkenaan cuba mengelak daripada membayar duti anti-lambakan itu bagi membolehkan mereka mengaut keuntungan dengan cara besi yang diimport mereka dijual pada harga lebih murah atau sama dengan harga pasaran produk besi tempatan,” katanya. Sumber itu menjelaskan, duti anti-lambakan tersebut hanya dikenakan terhadap jenis dan kategori besi yang ditetapkan oleh kerajaan.
Mengulas kaedah syarikat terlibat memanipulasi sistem dan syarat pengimportan bahan berkenaan, sumber itu memberitahu, antaranya termasuk penggunaan surat akuan kandungan bahan berbeza daripada bahan diimport, pemalsuan dokumen jenis besi termasuk pengisytiharan barangan kontena berbeza.
“Di samping itu, ketirisan itu juga berlaku daripada penyalahgunaan pengecualian duti anti-lambakan yang dikeluarkan Lembaga Pembangunan Pelaburan Malaysia (MIDA) kepada syarikat yang memohon,” katanya.
Tambah sumber berkenaan, senario itu bukan sahaja akan mengakibatkan negara mengalami kehilangan hasil pendapatan negara malah membuatkan industri besi tempatan gagal bersaing sekali gus ditutup.
“Sekiranya perkara ini tidak dibendung, tidak mustahil ramai tenaga tempatan juga akan kehilangan pekerjaan,” ujarnya.
Lebih menyedihkan, sumber itu berkata, kegiatan memanipulasi sistem dan syarat pengimportan itu turut berlaku dalam pelbagai industri import yang melibatkan bahan dan produk lain.
no wonder their imported HRC product cheaper than local manufacturer producer MEGASTEEL price. If government take action on this irresponsible local steel importer ( include 4 public listed compnay) will benefits to Megasteel and indirectly help lioncor to bring in new investor for restructuring plan??
Investor99, you are right. Any action taken on the irresponsible local steel importers will benefit Megasteel and indirectly help lioncor (megasteel) in restructuring (new investor may be). Perhaps it is a good reason to start the spv which proposed by megasteel? Just my guess. Again, let's see how the progress going. As reported, around 100 companies practise the illlegal practice. It is a very serious issue now, I think gov will do something to curb the illegal import and take action on the involved parties. May be there is following news report on the 4 public listed companies.
Sharkeatapple, yes. I think maybe government will use this reason yo start spv.If lioncor successfully restructure, 3.5 cents is the best price to hold for long term ?
IF and ONLY IF lioncor successfully restructure, AND maintain profitable every year, 3.5 cents should be a good price to hold for long term. Let's wait for the comment from misif on this issue (逃税).
KUALA LUMPUR: The Malaysian Iron and Steel Industry Federation (Misif) has lodged a complaint with the ministry of finance (MoF) on concerns raised by its members regarding the industry-wide audit that was conducted in a high-handed manner of the steel industry last week.
In a letter addressed to Deputy Finance Minister Datuk Chua Tee Yong, Misif noted that the industry-wide audit, which had so far raided 12 of its members including six listed companies, had resulted in the freezing of bank accounts, and confiscation of mobile phones.
As long-standing manufacturers, Misif said its members' operations would not abscond. It asserted that the initial audit investigations should be conducted under the Customs Act 1967, which does not involve the need for heavy weapons, and not under the Anti-Money Laundering Act (AMLA).
“Our members are bona fide manufacturers that have continued to contribute significantly to the development and well-being of the national economy since several decades ago,” Misif said in the letter sighted by The Edge Financial Daily.
“In view of the above, we seek the urgent attention and assistance from Yang Berhormat to address the ongoing predicaments, especially the freezing of accounts, facing the steel companies,” it added.
Among the companies raided are Amalgamated Industrial Steel Bhd (AISB), Alpine Pipe Manufacturing Sdn Bhd (account frozen) and Hiap Teck Hardware Sdn Bhd (both subsidiaries of Hiap Teck Venture Bhd), PPI Industries Sdn Bhd (account frozen) (subsidiary of Wah Seong Corp Bhd), Ann Joo Metal Sdn Bhd and Anshin Steel Service Centre Sdn Bhd (both subsidiaries of Ann Joo Resources Bhd), Tashin Steel Sdn Bhd and Prestar Steel Pipe Sdn Bhd (both subsidiaries of Prestar Resources Bhd), and Southern Pipe Industry Sdn Bhd (subsidiary of Southern Steel Bhd).
The raids were conducted by the Royal Malaysian Customs Department together with other government departments such as the Royal Malaysian Police, the MoF and the Attorney-General's Chambers of Malaysia last week.
Misif said its members had raised concerns about the “high-handed” manner of the “audit”, which included heavy weapons, the confiscation of mobile phones and switching off of CCTVs within the premises during the visit.
“As responsible corporate citizens and manufacturers, our members will extend [the] full cooperation to the authorities for such visits, but not to the extent that their reputation and image are put at stake when no wrongdoing or offence has yet to be determined by the authorities. Staff morale and implications for joint-venture investments would also be adversely affected,” Misif said.
The association also noted that the freezing of accounts would affect its members' investor confidence and company reputation, especially public-listed companies.
In a filing with Bursa Malaysia last week, Hiap Teck confirmed that the customs had taken custody of certain documents of two of its subsidiaries, and frozen a bank account of one of the two subsidiaries “for purposes of audit and investigation”.
Hiap Teck revealed that it is currently seeking legal advice on the matter.
KUALA LUMPUR 27 Feb. – Pelbagai kaedah digunakan oleh sesetengah syarikat pengimport besi di negara ini bagi memanipulasi sistem serta syarat mengimport bahan berkenaan demi mengelakkan daripada membayar duti anti-lambakan.
Menurut sumber, kebanyakan modus operandi digunakan menjurus kepada tidak mengisytiharkan jenis besi sebenar yang diimport supaya tidak dikenakan duti berkenaan. “Pertama dengan menurunkan harga besi yang diimport menggunakan kod atau tarif besi yang tidak dikenakan duti anti-lambakan. Ini bermakna syarikat terbabit tidak perlu bayar duti anti-lambakan sebaliknya hanya perlu membayar cukai import selain cukai barang dan perkhidmatan (GST).
“Kedua, syarikat terbabit mengisytiharkan besi diimport tidak tergolong dalam besi yang sepatutnya dikenakan duti anti-lambakan,” katanya kepada Mingguan Malaysia baru-baru ini.
Jelas sumber berkenaan, antara cara lain adalah dengan memanipulasi dokumen termasuk sijil perakuan bahan besi dengan menyatakan bahawa besi yang diimport bukan bahan komoditi yang sepatutnya dikenakan duti anti-lambakan. “Cara ini turut melibatkan proses memanipulasi dokumen kandungan besi yang secara tidak langsung akan membolehkan syarikat berkenaan membayar kadar duti yang lebih murah daripada peratus yang ditetapkan. “Pada kebiasaannya, dalam 10 kali urusan mengimport dilakukan tiga kali mereka akan guna cara ini dan ada kalanya menipu terus,” ujarnya.
Kata sumber, kaedah lain turut melibatkan helah `kontena AB’ yang mana barang diistiyharkan kepada pihak berkuasa berbeza daripada barangan diimport. “Sebagai contoh import barang A iaitu keluli tahan karat tetapi yang diisytiharkan adalah aluminium iaitu jenis besi yang tidak dikenakan duti anti-lambakan. Taktik ini turut digunakan untuk kegiatan penyeludupan bahan-bahan lain termasuk yang berduti tinggi seperti rokok dan minuman keras,” katanya.
Tambah sumber, selain itu, antara cara lain adalah dengan menyalahgunakan pengecualian duti anti-lambakan yang dikeluarkan Lembaga Pembangunan Pelaburan Malaysia (MIDA). “MIDA ada mengeluarkan pengecualian kepada segelintir syarikat pengimport besi yang memohon, namun pengecualian itu mempunyai jumlah besi termasuk tempoh ditetapkan. “Sebaliknya syarikat terlibat menyalahgunakan dengan membawa masuk lebih daripada jumlah dibenarkan serta melangkaui had masa ditetapkan,” jelas sumber itu.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
investor99
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Posted by investor99 > 2016-01-19 00:52 | Report Abuse
Kipidap, pray for lioncor