Sembcorp Marine: Co. will record a $54.4m refund of tax in its income statement in due to the favourable tax assesment following the settlement of its disputed FX transactions. Grp has been allowed a deduction from its losses from this recorded in FY09 and FY09. As tax had provisionally been paid pending the decision and a refund will be received from IRAS in due course.
Kim Eng note that if refunded by this financial yr, this reversal will provide a 7% boost to house forecast for FY11 to $808m. Stress that this is a one-time adjustment, but believe that it may be applied, if SMM so chooses, towards paying out its dividends. The $54.4m represents around 2.6c/share. Fundamentally, house remain sanguine on SMM's prospects and the potential for its share price recovery and keys Buy Call with $4.95 TP.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment