MYCRON (5087) - Letter from a shareholder to the Board of MYCRON STEEL BHD

MYCRON (5087) - Letter from a shareholder to the Board of MYCRON STEEL BHD

The following letter has been sent to both directors via email & now awaiting for their replies.

The Board of Directors
Mycron Steel Bhd
Lot 717, Jalan Sungai Rasau,
Seksyen 16, 40706 Shah Alam,
Selangor, Malaysia
Tel: 603 5510 6608

Attn: CEO En Azlan Abdullah (
Attn: Senior Director En Shazal Yusuf bin Mohamed Zai (

Dear Encik Azlan, Encik Shazal Yusuf and Members of the Board,

Letter from a shareholder to the Board of Mycron Steel Bhd

I am writing to you as shareholder of Mycron Steel Bhd, and would like to praise the Board of Directors for Mycron's annual reports are the best I have ever read among all public companies listed in Bursa.
The clear presentation of key metrics and willingness to openly discuss issues affecting business in the Chairman’s Statement has never been seen in other public listed companies and has attracted me to look into the company. The detailed business overviews and in-depth industry information in the Annual Reports has given me fantastic understanding about CRC & HRC steel industry in Malaysia and it helps exceptionally in my investing decision. My final decision to invest into your company has turned out to be one of my most successful investments in my 20 years of investing life.
Another reason of investing into your company is because Mycron commanded highest profit margin among all major CRC producers in Malaysia for the last 5 quarters consecutively, good job and well done by the Board, management team and its staff. 
I have also written few articles about CRC industry & the relevant CRC producers in Malaysia, mainly based on industry information derived from Mycron's annual reports, and published at

(5 Sep 2016) Bright Future for CRC Steel Producers: CSCSteel, Mycron, Eonmetal & YKGI (Part 1)
(6 Sep 2016) Huge Potential Upside for CRC Steel Producers: CSCSteel (+24%) & Mycron (+90%) (Part 2)
(12 Sep 2016) Flying CRC Steel Producers: Fantastic Business Outlook & Insider's Look (Part 3)

After the publication of the above 3 articles, the articles had received well reception from the readers/users/general public. As such, I am planning to write an article in detailing Mycron for its financial strengths, management vision & future plans as well as the latest development of Malaysia CRC industry.

As a shareholder of Mycron, I wish to know more about latest business development of Mycron from the Board & would like to share my findings with more people as I strongly believe there is tremendous intrinsic value in Mycron. As such, it would be greatly appreciated if the Board can share or provide your views or advise on the following:

1. Mycron’s position in the previously imported CRC market in Malaysia after the imposition of anti-dumping duties and recent price increased of CRC in China. 
What are the advantages & competitive edge of Mycron compared to those imported CRC in term of pricing & time of delivery in recent months, especially in 3 months ending Sept 2016, compared to the quarter period ended 30/6/2016?
If Mycron has better pricing power than those CRC imported from China, has Mycron managed to secure more orders from consumers that previously went for imported CRC?

2. Average selling price of CRC in Malaysia from Jul to Sept 2016. 
There are reports & websites from China suggesting that price of CRC in China has increased consistently from RMB3,000 to RMB3,500 (from RM1,840 to RM2,147 using RM:RMB1.63) during the period from Jul to Sept 2016. Does this help to boost the selling price of CRC in Malaysia? And what are the CRC's average selling prices in Malaysia in the months from April to Sept 2016?

3. Production of CRC & Steel Tube by Mycron from Jul to Sept 2016
The following table was compiled by me based on Mycron's quarterly reports, it will be much appreciated if the information of sales tonnage for quarters from 30/9/2015 to 30/9/2016 can be verified or provided by the Board.
It would be also very much appreciate if the Board can provide current production usage (Jul to Sep), compared to the months of April to June.

4. Future expansion plan, fund-raising options & corporate exercises 
In view of the positive development in Malaysia CRC industry, is there any expansion plan from Board to expand Mycron’s production capacity in near future or any corporate exercises are under consideration by the Board?

It is my strong belief that all the above information from the Board shall greatly assist on the better understanding from the general public & investors on Mycron’s superior position in the industry as a leader in either profit margin or differentiation and would able to give strong message to attract investors and solidify shareholders’ confidence on Mycron as well as facilitating the creation of significant value for all shareholders.
I am available at your convenience if you have any questions or would like to discuss in further detail.
Thank you for your time and I look forward for your early reply.


MYCRON (5087) - Letter from a shareholder to the Board of MYCRON STEEL BHD