KUALA LUMPUR (April 27): Malaysia Steel Works KL Bhd (Masteel) — which manufactures and sells high-tensile steel bars, mild steel bars and prime steel billets — announced it will delay the issuance of its audited financial statements for the financial year ended Dec 31, 2014 (FY14).

In a filing with Bursa Malaysia this evening, Masteel (fundamental: 0.35; valuation: 1.4) said its external auditor requires more information to complete its audit.

“The company wishes to provide more time for the external auditors to complete the auditors’ and directors’ report (AFS 2014),” the group said in a filing, adding it is working to finalise the audit expeditiously.

“The company expects its AFS 2014 on or before May 11, 2015, although the Company is working towards the deadline on April 30, 2015,” it said.  

According to Rule 9.32(2) of Bursa Malaysia’s Main Market Listing Requirements, a listed company is required to furnish the annual audited financial statement, together with the auditors’ and directors’ report, within four months from the close of its financial year.

It said Bursa will suspend the trading of its shares on May 12, if the company fails to issue the oustanding AFS 2014 within five market days beyond April 30.

If it fails to issue the outstanding AFS 2014 within six months after April 30, Bursa will commence de-listing against it, it added.

In FY14, Masteel reported a 41.5% plunge in net profit to RM15.8 million, from RM27.01 million in FY13, despite a 5.6% growth in revenue to RM1.45 billion, from RM1.37 billion previously.

Masteel’s managing director and chief executive officer Datuk Datuk Seri Tai Hean Leng @ Tek Hean Leng currently holds a 31.23% stake, following a recent exercise of 2 million warrants at 67 sen apiece.

The stock closed 1.79% or 1.5 sen lower at 82.5 sen, with 44,200 shares traded, giving it a market capitalisation of RM201.33 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)