Updates from my Cerebos meeting yesterday.....generally positive and better than expected....so maintaining my recommendation that Cerebos is a good yield play
Wednesday, 1 February, 2012 9:4 AM
Posted by Kevin Scully
The Cerebos results meeting yesterday was well attended. Here is a summary of what I felt were key points raised at the meeting:
a) the sharp rise in Malaysian profit was as expected from a non recurrent item , ie the sale of a building in Malaysia which resulted in a capital gain of S$12.4mn. Overall the business is roughly unchanged with margins being maintained.
b) the sharp increase in tax rate was due to the ending of capital allowances for its Thai operations. But Cerebos has indicated that a planned reduction in corporate tax rate from 30% to 23% in 2012 and then down to 20% will help bring its Thai tax down in ......
