Lafarge Malayan Cement is down 3.3% at MYR7.13, underperforming the broader market. A local dealer saying the stock is under some selling pressure after the company says the Income Tax Board of Review of Singapore has dismissed an appeal by its wholly-owned unit LMCB Holdings against additional tax assessments from Singapore’s Inland Revenue Authority.
Lafarge says it has "strong grounds" to file an appeal to the High Court but "in the event the final decision is not favourable...the total tax refunds recognised for the financial years ended 31 December 2003 to 2007 amounting to MYR38.551m (US$12.8m) would have to be reversed."
The dealer says this sell-off is a knee-jerk reaction to the news and "not entirely surprising as the tax reversal may affect the 1Q bottom line".
Lafarge posted a 4Q net profit of MYR80.5m (US$26.7m).