Steppe Cement Share Discussion Threads

[elpirata] 21/10/2022 17:21

they guided 'November' without being any more specific so it could come anytime within that window, ie as opposed to a stock with a set annual divi calendar, Im sure prospective buyers will be aware, hence the current strong uptrend.

[danmart2] 21/10/2022 16:59

Around 2 weeks until the dividend is confirmed?

[elpirata] 21/10/2022 16:26

window of opportunity before divi announcement rapidly closing, should be on a flyer to 50p in the next 2 weeks

[return_of_the_apeman] 21/10/2022 11:11

To me the chart says resistance at 39p but order book says resistance is very weak with just 33,000 shrs available to buy below 39p. This might get back in the 40-60p box today with some very light buying where 40p then becomes support

We shall see

Gla

[stun12] 21/10/2022 10:57

Previous resistance at 45p first, but looking lovely today in a sea of red.

[bluemango] 21/10/2022 10:03

Anyway first target is recent peak around September 2021, just over 60p. Would still be a high yield of over 9% with no tax issue and 5p this year, 6p in July.

[mattjos] 21/10/2022 09:51

if you believe in EW theory, we're on the way to a quid, afaiac

[mattjos] 21/10/2022 09:40

in any event, the current round of selling looks to have been cleared out

[mattjos] 21/10/2022 09:40

Hi Aleman, I prefer to use 13,49,75 EMA for identifying that pattern & using those moving average settings, the Golden Cross occurred yesterday

[eggbaconandbubble] 21/10/2022 08:46

Aleman - Well spotted!

Gary and Danmart - I agree entirely!

[aleman] 21/10/2022 08:16

Potential golden cross coming?

[danmart2] 20/10/2022 18:21

Sit back and await the announcement

[tigerbythetail] 20/10/2022 13:14

It feels like the seller is finally out.
I think 50p per share is the MINIMUM this should be trading at, assuming the 5p dividend is announced as expected. The company is stable and profitable and growing, and there is every reason to expect the same dividend or slightly better next year.
So how can this yield more than 10%, as it is now? It is simply too much.
In the short term, it will help, of course, that the 2021 and 2022 dividends will now come within about 9 months of each other as a result of the delay. 10p (or maybe 11p) per share dividends over nine months is quite some return.

[return_of_the_apeman] 20/10/2022 12:41

Still be a payment of circa. 23% (76% of 11p) @36p even if we have to pay tax on the previous an next divi and that's not even over 12m months

[bluemango] 20/10/2022 09:56

People following the lead of directors buying a week ago.

This is second largest holding in my income portfolio, an amazing & sustainable yield if they can sort this tax issue out next month.

[mattjos] 20/10/2022 09:37

looks to me like we are finally starting to escape the 13 months down trend. Price is much more sensitive to small buying pressure than has been the case for long time
Certainly feels like there has been a decent chunk change hands here recently.

I think reasonable to believe we should soon establish circa 50p as the new floor.

[wind dancer] 20/10/2022 08:46

What do. We think will be the in-dividend date for the 2001 payment? Forward looking as usual or retrospective?

[mattjos] 19/10/2022 20:46

very good r_o_t_a :-)

[gary1966] 19/10/2022 19:40

Why speculate? Relax and await the announcement, not long now.

[return_of_the_apeman] 19/10/2022 18:24

Perhaps this is the sticking point, the theory is good but the government is not sure how they are going to put it into practise yet but they might have stated to Steppe that the answer is coming in Nov

Notwithstanding the above, the Guidelines do not explain whether the bilateral / unilateral credits are to be computed on a source-by-source, country-by-country or consolidated basis

[return_of_the_apeman] 19/10/2022 18:13

Yeah, the Dutch tax treaty rings a bell, you are right that was the premise they were working from

One must be mindful of course to pass the Dutchy tax from the left hand side :-)

[aleman] 19/10/2022 17:37

Your last sentence - the company quotes paying a 20% profit tax but that is not the same as the tax on dividend distributions. In Kazahkstan that seems to generally now be 5%. But doesn't it also go through the Netherlands holding company? They generally have a 15% withholding tax on distributions there which might meet the tax-paid requirement - but are they still exempt? Now look at the admission document (with out of date tax rates?). Do they pay 15% or more tax on distributions anywhere? If not, then do the exemptions overrule the 24%? Still not clear to me - but somebody out there probably knows now. (The insider buying might not be for the dividend. Given the low price, it might equally be for share buy-backs or capital return now that exemptions have been "clarified" - LOL.)

4 Taxation Status of the Group
Central Asia Cement is an operational, Kazakhstan share company which is subject to a profit tax in Kazakhstan
at a corporate income tax rate of 30%.
Any dividend distributions to be made by Central Asia Cement to Central Asia Cement Holding BV are in principle
subject to a Kazakh dividend withholding tax rate of 15%. However, under the tax treaty concluded between the
Netherlands and Kazakhstan, this percentage can be reduced to 5% of the gross amounts of the dividends.
Central Asia Cement Holding BV is subject to a profit tax in the Netherlands at a corporate income tax rate of
31.5% (reducing to 30% in 2007). However, with respect to the 100% shareholdings in Central Asia Cement,
Central Asia Cement Holding BV should be entitled to the Dutch taxation participation exemption because it has
obtained a participation exemption ruling with the Dutch tax authorities. As a result Central Asia Cement should
be entitled to distribute dividends to its Dutch intermediate holding company without Central Asia Cement Holding
BV becoming subject to Dutch taxation on the dividends.
Any dividend distributions to be made by Central Asia Cement Holding BV to Steppe Cement (M) Sdn. Bhd. in
Malaysia would normally be subject to 25% Dutch dividend withholding tax. However, under the tax treaty
concluded between the Netherlands and Malaysia this percentage can be reduced to nil, assuming that Steppe
Cement (M) Sdn. Bhd. is entitled to treaty protection under the Netherlands/Malaysian tax treaty.
Under Malaysian tax law any dividend income received by Steppe Cement (M) Sdn. Bhd. from Central Asia
Cement Holding BV will be credited into an exempt income account from which tax-exempt dividends can be
distributed to Steppe Cement. There is no withholding tax on dividends distributed by Steppe Cement (M) Sdn.
Bhd. to Steppe Cement.
Under the Labuan tax legislation, dividends received by Steppe Cement from Steppe Cement (M) Sdn. Bhd. will
be exempt from tax. There is no withholding tax on dividends distributed by Steppe Cement to its shareholders.
Any gains from the disposal of shares in Steppe Cement by its shareholders would generally not be subject to any
tax in Malaysia or Labuan.

[return_of_the_apeman] 19/10/2022 14:00

The Board of Steppe Cement Ltd (Steppe Cement or Company) wish to draw the attention of shareholders to the following matters:

Dividend proposal

The Board wishes to recommend the distribution of a 5p dividend in respect of 2021. However new regulations in Malaysia have created uncertainty about the tax treatment of foreign sourced dividend income for Malaysian corporates - meaning that income to Steppe Cement Sdn Bhd may be subject to a 24% withholding tax. Therefore before declaring the dividend, the Board is waiting for clarification regarding the exemption to this tax. It is the understanding of the Board that confirmation from the Malaysian authorities will be forthcoming shortly. The Kazakh subsidiaries already pay 20% profit tax in Kazakhstan.

[return_of_the_apeman] 19/10/2022 13:53

Great spot Aleman,

Think it is covered in this bit, I seem to remember the companies gripe was that tax had already been paid in another country - I'll see if I can dig it out if no-one has it to hand

Pursuant to the Order, the FSI exemption available to a qualifying individual[1] is conditional upon the FSI having been subjected to tax “of a similar character to income tax” under the laws of the foreign jurisdiction (“subject to tax” condition). For the purpose of this Order, the Guidelines provide that the “subject to tax” condition is considered to have been met where:

(i)The income has been subject to tax in the foreign jurisdiction – i.e., withholding tax (WHT) or income tax is paid or payable in the foreign jurisdiction

Dyor - I am not an expert

Other bullish factors around this announcement are it came out after the last update from the company stating it expected the issue to be sorted in November. Also it was in the public domain before the insiders bought a massive chunk last week.