PRACTICE NOTE 17 / GUIDANCE NOTE 3: MONTHLY ANNOUNCEMENTHEXAGON HOLDINGS BHD
Type Announcement Subject PRACTICE NOTE 17 / GUIDANCE NOTE 3 MONTHLY ANNOUNCEMENT Description HEXAGON HOLDINGS BERHAD (“HHB” or “the Company”) Monthly Update on the Status of the Company’s Regularisation Plan pursuant to Practice Note 17 (“PN 17”) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad
Further to the First Announcement made on 28 February 2013 and subsequent announcement made on 1 April 2013, 2 May 2013, 3 June 2013, 1 July 2013, 1 August 2013, 2 September 2013, 1 October 2013, 1 November 2013, 2 December 2013, 2 January 2014, 4 February 2014, 19 February 2014, 27 February 2014, 28 February 2014 and 3 March 2014 in compliance with Paragraph 4.1 of PN17, the Board of Directors of HHB wishes to inform that the Company is presently in the midst of formulating a Regularisation Plan to address its PN17 status ("Regularisation Plan") and the Company had on 27 February 2014 submitted an application to Bursa Malaysia Securities Berhad to seek for an extension of time for two (2) months up to 28 April 2014 to make the Requisite Announcement and four (4) months up to 28 June 2014 to submit the Regularisation Plan to the regulatory authorities.
The Company was informed by Bursa Malaysia Securities Berhad in its letter dated 27 February 2014 which was received on 28 February 2014 that the suspension on the trading of the Company’s securities and de-listing of the Company in accordance with Paragraph 8.04(5) of the Main Market Listing Requirements shall be deferred pending decision on the Application.
L2, yes, from the title "马交所审核金狮延交重组申请" means, bursa still under consideration for the request, bursa still have final decision to reject the application.
PETALING JAYA: The local steel industry is still viable and competitive given the increasing demand in the apparent steel consumption (ASC), which has crossed the 10 million tonnes mark last year, said Malaysian Iron and Steel Industry Federation (MISIF) president Datuk Soh Thian Lai.
The ASC is expected to grow by 4% per annum from 2014 to 2016, he said, adding that the projection is 10.5 million tonnes this year, 10.8 million tonnes in 2015 and 11 million tonnes in 2016 based on the baseline growth .
This was despite the industry facing significant risks such as increased dumping of cheaper imported steel, high costs and volatile prices of raw materials such as scrap and iron ore as well as the hikes in electricity and gas prices in recent years.
“To stay competitive, the steel sector is urging the Government not to issue new licences on products currently produced, encouraged investments on new steel products as well as enforced buy Made-in-Malaysia steel products policy,” Soh said in a panel discussion at a MISIF steel conference held here recently.
“If all the government-linked companies (GLCs) and government owned projects are using local steel products, we believe at least two to three million tonnes of local steel per year can be increased to replace net imports,” he added.
The Government also needed to impose more trade measures to help out the injured steel millers affected by the cheaper imported steel products, especially from China flooding into the local market in recent years.
“Under the WTO (World Trade Organisation) rules, we have the right to do so (trade measures).
“After steel bar, we should look at other affected businesses such as galvanised iron products, cold rolled coiled products and pre-fabricated pre-painted steel products.”
Soh pointed out that the government should also provide incentives such as full off-peak period rates for electricity and natural gas during public holidays and weekends to help out the steel industry players have a competitive break to produce lower cost products.
The strategic steel sector in Malaysia is estimated to worth over RM40bil, hiring 150,000 direct employment and about 100,000 indirect employment.
Given the continued dumping of cheaper imported goods, crude steel production in Malaysia has dropped sharply while finished steel production was flat, totalling 4.7 million tonnes and 7.5 million tonnes respectively.
Soh noted that the low facility utilisation with significant under-utilisation included bars and wire rods, sections, plates and flat rolled products.
Ann Joo Resources Bhd group managing director Datuk Lim Hong Thye concurred that the domestic steel sector is still competitive, but “the issue here is how the government can help the industry to address the influx of cheap steel products from China.”
Contrary to the perception that the local steel outlook is quite bad and Malaysian steel millers are not competitive, he pointed out that Malaysia has the strategic location, good infrastructure, stable road transportation and utilities which are conducive to develop a strategic steel sector.
“However, the steel landscape here has changed as the sector is no longer looking at cheap workforce as we need skilled workers especially in the upstream side.
Relatively, Malaysian steel players are better than their South-East Asian counterparts, said Lim.
“While some suggested that buying cheaper imports will help to lower the cost of construction but are these so called cheap China steel products sustainable especially the boron-added-type alloy steel? ”
CSC Steel Holdings Bhd managing director Chen Chung Te, meanwhile, said many other countries like Asia, Europe and the United States were also affected by influx of cheap steel imports from China.
For Malaysia, which is looking at achieving the developed economy status by 2020, he suggested that local steel players venture into high quality steel production for automobile and the electrical and electronics sectors. “The local industry should try to improve on its supply chain by investing into high facility whereby you can supply at least 70% to 80% to the niche sectors while 20% for export,” he said.
We refer to the First Announcement dated 25 October 2013 made by the Company in relation to the Company being classified as a PN17 Issuer and the announcement dated 4 November 2013, 2 December 2013, 2 January 2014, 24 January 2014, 4 February 2014, 3 March 2014, 1 April 2014, 2 May 2014, 2 June 2014, 1 July 2014, 1 August 2014, 2 September 2014, 1 October 2014 and 31 October 2014 pursuant to the requirements under PN17 (“Announcements”). Unless otherwise stated, defined terms in this announcement shall carry the same meanings as defined in the Announcements. The Board of Directors of the Company hereby announce that the application by the Company to Bursa Malaysia Securities Berhad (“Bursa Securities”) on 1 October 2014 for an extension to 30 June 2015 to submit a Regularisation Plan (“Application”) is still pending the approval from Bursa Securities. In relation thereto, Bursa Securities had vide its letter dated 31 October 2014 informed the Company that the suspension on the trading of the Company’s securities and de-listing of the Company in accordance with Paragraph 8.04(5) of the Main Market Listing Requirements of Bursa Securities shall be deferred pending decision on the Application.
policy plans could be too little too late for the local industry. until there is concrete and effective affirmative policy in action, i have moved to the sidelines.
i sold my last lots today just to be safe. maybe wrong decision but i cannot predict what Bursa will do. still interested though, so will keep monitoring.
local steel is strategically important. policymakers should have been proactive these past years. now the situation is hurting the steel makers real bad. it did not have to come to this. maybe they want GLCs to pick these up on the cheap, who knows.
Perwaja audited accounts submitted on the last possible day yesterday, or would have kena suspension. Over 1bn loss, 2x Lioncor's. Also got opinion disclaimer by independent auditors.
Lioncor got 1 land valuation date on 18.10.1995, with value at rm632m, if up-to-date value x2 or x3, lioncor can out from pn17. But what make worry is megasteel keep losing money?
investor99, the anti-dumping protection is supposedly to be decided in 1Q2015 from recent news posted here. that and enforcement of buy local steel would help Megasteel a lot as well as TNB rate hike now deferred to Jun2015. the land revaluation is what some vultures could be targeting. if lioncor gets an extension (next month?) from SC and policymakers walk their talk, i see a good turnaround story in the making. but that's me only. in the meantime, i just minimise risk bcos SC could rule differently with their own mind e.g. in the news : EPF as major stakeholder got no say in merger of cimb-rhb-mbsb. what the fish right?
In that Nanyang Siang Pau article, the downstreamers making noise are looking at short term gains for themselves, not the country. I believe some may be the culprits who declared imported steel with a little alloy as something else to steel to bypass tariff protection. Unethical. The Greek problem is strong unions in almost every industry sector that make manufacturing not viable and hence dependency on other sectors such as tourism. There is also lack of infra growth. Here we have lots of infra growth, so upstream domestic steel producers should be given a chance. I laud Indonesia's foresightedness in this area. Govt can help with tariffs and energy incentives.
depends. there could be a delay to delisting pending an appeal or a saviour / white knight comes along...in this case it could be liondiv/ind as the current major shareholders.
investor99, i would not know. but there seems enough assets within the Lion group IF they want to lend Lioncor a hand. the only notable buy Q is 3000@5.0sen as the SC decision draws nearer.
wondering the same too. such important issue and only got 1 pager in SC announcement with nothing about the RP. maybe not minuted and privy to those who attended? i see buy Q increase much today at 6sen.
A little support that has not been seen for some time. Buy Q at 6.5sen also was higher than normal at last 2 days' opening (abt 9600 lots). Insiders ? I am still on the sidelines.
investor99, Today also not bad the buy Qs at 6.0 and 6.5 but what if it is window dressing to trap? only when SC announces will it become clearer for me. Based on the delisting instances you brought up before, there was one where the SC replied to extension request after 1 month and a few days. So, for Lioncor that might be early Dec.
Megasteel expects 20% rise in domestic orders Author: value_investor | Publish date: Thu, 20 Nov 10:51
Lion Corp Bhd's unit, Megasteel Sdn Bhd, expects domestic orders to improve after the recent imposition of the preliminary anti-dumping duties on hot rolled coils (HRC) originating or exported from China, Indonesia and South Korea. "We expect local orders to increase and selling prices to improve since the issue of dumping of coils by the three nations subject to the provisional anti-dumping duties on HRC is temporarily resolved. We anticipate an increase of about 10% to 20% in orders," the company's spokesperson told. A source familiar with the company told The Malaysian Reserve that Megasteel is already ramping up its production at its plant in Banting, Selangor immediately after the Ministry of International Trade and Industry's (MITI) announcement on the provisional anti-dumping duties. (Malaysian Reserve)
Iron-ore price slowdown no effect on anti-dumping duties Monday, 17 November 2014 12:55
Iron-ore price slowdown no effect on anti-dumping duties .Monday, 17 November 2014 12:55 Farah Adilla 0 Comments . The iron-ore price depreciation on the world market will not impact existing preliminary anti-dumping duties measures imposed by the Ministry of International Trade and Industry (MITI) or the final investigations currently underway.
An official from the Malaysia Steel Institute told The Malaysian Reserve the main concern is that the selling price of imports must at least match the domestic production selling prices.
“The preliminary anti-dumping measures remained justifiable as we are against dumping activity that has adversely impacting the local steel industry.
“The price of raw material will always keep on fluctuating so it doesn't matter if their manufacturing cost is lower due to cheaper raw materials. The alleged countries still have to sell at the same level of hot rolled coil (HRC) price in Malaysia,” the official said.
Last month, MITI has imposed a provisional anti-dumping duties ranging between 3.15% and 29.37% on imports from China, Indonesia and South Korea. The anti-dumping duties will be effective not more than 120 days from Oct 17, 2014.
The imposition of the anti-dumping duties will be subject to the outcome of the final investigation no later than 120 days from the date of the gazette of the provisional anti-dumping duties.
The move was made following a petition filed by Lion Corp's 79%-owned subsidiary, Megasteel Sdn Bhd, on behalf of the domestic industry producing HRC.
Megasteel, in the petition, alleges that imports of HRC originating in imported from the three countries at a price much lower than the price in their domestic markets. The petitioner claims that this is causing material injury to the domestic industry in Malaysia.
A report by Bloomberg quoted Citigroup Inc as saying that iron ore prices will plummet to less than US$60 per tonne next year as global supply increases and demand remains weak, slashing its quarterly forecasts for 2015 by 23%.
The report said iron ore lost 44% of price value this year as surging supplies from BHP Billion Ltd and Rio Tinto Group in Australia and Brazil's Vale SA created a glut just as China's economy slowed.
if miti start up the anti-dumping duty, means megasteel is the main beneficial company, company which 79% own by lioncor? so, TSWC will really agree to pump in another RM4b for Lioncor restructuring plan? lioncor share issued 1.316b, means RM4b equal to RM3 per share for lioncor?
quite a few uncertainties linger on since the initial anti-dumping protection is 120 days only from 17Oct, and provided the authorities can enforce as you know there are always those who evade.
positive news for local flat steel (Megasteel HRC especially). a higher ramped up utilization will give more confidence, so maybe have to wait for more news later about further increase to confirm recovery is on track.
lioncor's heavy debt might require funding from shareholders if the RP gets a chance and calls for it. so even ikan bilis percentage will help. i think lioncor wants to stay listed but only SC can decide, likely in the next 2 weeks.
re trap, i meant others who want to offload, or opportunistic buyers with inside info on the pending decision. TSWC i agree no point for him.
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Posted by investor99 > 2014-11-01 01:16 | Report Abuse
PRACTICE NOTE 17 / GUIDANCE NOTE 3: MONTHLY ANNOUNCEMENTHEXAGON HOLDINGS BHD
Type Announcement
Subject PRACTICE NOTE 17 / GUIDANCE NOTE 3
MONTHLY ANNOUNCEMENT
Description HEXAGON HOLDINGS BERHAD (“HHB” or “the Company”) Monthly Update on the Status of the Company’s Regularisation Plan pursuant to Practice Note 17 (“PN 17”) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad
Further to the First Announcement made on 28 February 2013 and subsequent announcement made on 1 April 2013, 2 May 2013, 3 June 2013, 1 July 2013, 1 August 2013, 2 September 2013, 1 October 2013, 1 November 2013, 2 December 2013, 2 January 2014, 4 February 2014, 19 February 2014, 27 February 2014, 28 February 2014 and 3 March 2014 in compliance with Paragraph 4.1 of PN17, the Board of Directors of HHB wishes to inform that the Company is presently in the midst of formulating a Regularisation Plan to address its PN17 status ("Regularisation Plan") and the Company had on 27 February 2014 submitted an application to Bursa Malaysia Securities Berhad to seek for an extension of time for two (2) months up to 28 April 2014 to make the Requisite Announcement and four (4) months up to 28 June 2014 to submit the Regularisation Plan to the regulatory authorities.
The Company was informed by Bursa Malaysia Securities Berhad in its letter dated 27 February 2014 which was received on 28 February 2014 that the suspension on the trading of the Company’s securities and de-listing of the Company in accordance with Paragraph 8.04(5) of the Main Market Listing Requirements shall be deferred pending decision on the Application.
This announcement is dated 1 April 2014.
--------------------------------------------------------------------------------
same reply from bursa to Hexagon, is that will same fate like Hexagon being delisted?