China Sunsine Chemicals Holdings

I think Sunsine does sell MBT, as listed in their website.

http://www.chinasunsine.com/en/our-business/products/

(08-10-2017, 09:43 PM)crubs Wrote: http://vip.stock.finance.sina.com.cn/q/g...ndex.phtml

- TBBS is already at 35,000 RMB/ton

http://vip.stock.finance.sina.com.cn/q/g...ndex.phtml

- CBS is at 28,000 RMB/ton

http://vip.stock.finance.sina.com.cn/q/g...ndex.phtml

-MBT is at 23,500 RMB/ton

http://vip.stock.finance.sina.com.cn/q/g...ndex.phtml

- Insoluble Sulphur should be around 15,000 RMB/ton 

If these prices are reflective of what Sunsine is selling their products at, we can expect favorable results in the coming quarters.

The selling prices indicated were in September and don't think we should have high expectations in the coming quarters. The raw materials prices are also going up.

Today, the share price closed at 94.5 cents. All time high. Hopefully, it can sustain the momentum before the quarter result announcement.

KGI just released a report on China Sunsine and it mentioned that Sunsine has a solid economic moat.

Target price $1.39.

Used PE 10 times, much lower than peers' PE listed elsewhere.

Report attached herein.

(26-10-2017, 04:33 PM)tiongkokgor Wrote: KGI just released a report on China Sunsine and it mentioned that Sunsine has a solid economic moat.

Target price $1.39.

Used PE 10 times, much lower than peers' PE listed elsewhere.

Report attached herein.

Thanks TKG as usual. Thanks Portuser too for giving me your view when I asked you whether this stock will hit $1. That was like 6-7 months back? I will take stock and continue assess the company.

Was comparing KGI Oct 2017 analyst report against NRA Jun 2017 report and noted the huge difference in the bank and cash equivalent projections:

KGI: FY2019 RMB 1,029.4M (in page 8) 

NRA: FY2019 RMB 642.0M (in page 21)   

Why is there such a big difference of  RMB 387M?

Attached NRA report herein.

One more trading day on 13.11.17 before the release of 3Q results on the same night. The dynamic of this stock has changed significally since the placement of treasury shares to institutional investors. This stock hardly trade above 1 million shares on daily average over the past few years but there were 37.3 million shares changed hands on 11.5.17. This is more than 10 million shares above the placement shares. Who has exited and who has come onboard?

In the rubber accelerators industry, it was reported that the overall production rate has declined resulting in the supply shortage. Being the leader in the industry, I am waiting to see how this translate to Sunsine's performance in term of sale and profit. The overall declined in the production by the industry as a whole can be attributed to closure of certain small players owing to the stringent environmental control. This should be positive for Sunsine because they have been complying with environmental requirement. If they were able to operate as per normal, their production rate should not be affected too much and they could enjoy higher profit margin due to the shortage of supply.

I am not going to focus too much on the share price but basing on fundamentals, growth and profitability of the company, I do hope my TP of 1.25 can now be hit before the end of FY17 by 31.3.18 instead of my original time frame of 1 year by Aug 18. I am optimistic that 3Q17's profit should set a new all time profit record.

Results a bit disappointing. I think market expects much better performance than this. Sale volume drop by 7% yoy and despite shortage in supply, the gross margin did not increase. Full year net profit should still be at least rmb 275m if 4q17 matches 4q16. The clampdown in environmental control seems to have affected Sunsine the same way it affected other players. This is another disappointment as Sunsine has been complying with the environmental measures. So the perceived advantage did not materialise. The company is still doing well and profitable but need to keep a closer eye on growth prospect now.

How does Sunsine's 3Q results compare to 阳谷华泰's (YGHT) results?

3Q2017 vs 3Q 2017
1) Revenue
Sunsine increased 16%
YGHT increased 12%
2) Net profit
Sunsine increased 7%
YGHT DECREASED 21%

YGHT financials can be found at http://www.cninfo.com.cn/cninfo-new/disc...2017-10-28

Sunsine 3Q results included a RMB 12.5 mil unrealised exchange loss from USD denominated balances (likely trade receivables since they export their products). However, RMB has recovered against USD after 30 September 2017 (for accounting purposes, foreign currency denominated balances are translated to reporting currency (RMB) at period reporting end date).

Sunsine is still the market leader and has stronger financials than its competitors.

The current 3Q net profit of RMB 78 mil is still the 2nd highest quarterly results since Sunsine's IPO.

The briefing on Tuesday was informative.

In response to questions on progress made by Sunsine's rivals in raising money to expand, CFO stated that Tianjin Kemai second application to list on Shanghai Exchange lapsed again.

Yanngu Huatai earlier proposal to issue placement shares for RMB 1,200m was turned down. It has just received approval for rights issue to raise RMB 750m. It will take 2 to 3 years to build.

Sunsine is therefore the only major rubber accelerator producer to meet rising demand of the tyre industry.