China Sunsine Chemicals Holdings

FY2011's full year results seemed to be below par..

Net Profit (mil RMB)
2011 - 88.5
2010 - 115.3
2009 - 88.3
2008 - 106.7
2007 - 76.1

P/E = 6.7
NAV = 31.5 cents
current share price = 25 cents

Company cited downward price adjustments of raw material costs which improved gross margin are temporary. Upward price pressure will creep in due to the overall positive outlook in China & rest of the world.

Despite the somewhat below-par results, company bought back its own shares from the open market...

Strange? Fishy?

Success More Group and Xu Cheng Qiu held 63.08%. Only 35.2% of the issued shares are held by the public or only $51.3mil (Spore dollars) based on NAV...

(23-04-2012, 09:27 AM)potatolover Wrote: Despite the somewhat below-par results, company bought back its own shares from the open market...

Strange? Fishy?

I don't think there is anything wrong in buying back shares after reporting less than stellar result. It could mean that the company believes that the drop is just temporary and they are confident that things will improve.

Not Invested, but monitoring on and off.

China Sunsine Chem serves over 55%of the world's top 75 tyre-makers. How is it able to maintain its competitive advantage over its rivals?

It cited challenging operating environment such as falling demand from key export markets, over-capacity, increased raw material and operating costs and pricing pressures. What are the entry barriers for this type of industries? 1st-mover advantage? Marketing strategies?

Its latest FY2011 result seems to suggest that its margins have been eroded?

Any views?

Some volume seen today on Chinassine.

From 1 Jan 2012 to late April 2012, company has bought back another 10.5 mil shares.

Think the % of shares held by public is fast depleting...

What does this imply?

Wow, volume further went up today...

Something is brewing...

(30-04-2012, 10:10 AM)potatolover Wrote: China Sunsine Chem serves over 55%of the world's top 75 tyre-makers. How is it able to maintain its competitive advantage over its rivals?

It cited challenging operating environment such as falling demand from key export markets, over-capacity, increased raw material and operating costs and pricing pressures. What are the entry barriers for this type of industries? 1st-mover advantage? Marketing strategies?

Its latest FY2011 result seems to suggest that its margins have been eroded?

Any views?

This is one of the S-Chip i am monitoring.

The eroded margin is mainly due to one-time re-location expense (Facility 1 to Facility 2). Another factor is due to additional expense of installing new production line in Facility 3

IMO, Overall nothing seem deteriorating.

Having reviewed the latest 1Q numbers.....
http://info.sgx.com/webcoranncatth.nsf/V...C003312D5/$file/CS_1Q2012ResultsAnnoucement.pdf?openelement
I agree this company does have good potential and also a smart management, as evidenced by their flexible marketing strategies which have produced the impressive growth in business volume todate.

For sure, tyre manafacturers - especially the larger ones - generally are good long-term customers.

(10-05-2012, 08:13 PM)dydx Wrote: Having reviewed the latest 1Q numbers.....
http://info.sgx.com/webcoranncatth.nsf/V...C003312D5/$file/CS_1Q2012ResultsAnnoucement.pdf?openelement
I agree this company does have good potential and also a smart management, as evidenced by their flexible marketing strategies which have produced the impressive growth in business volume todate.

For sure, tyre manafacturers - especially the larger ones - generally are good long-term customers.

I am glad dydx endorse the company

IMO, For those company product required precision process know-how, their customer are normally long term. One of the key reason is quality impacted if change supplier, which required a lot of effort to rectify.

Even with the same supplier, when facilities changes, re-qualification is required.

Just to share what i learn from my friend in plastic precision engineering industry

This is one of the rare S Chips which repurchased significant amount of stock without placing out new equities. I believe the other is Sunvic. YZJ also repurchased over two hundred million shares in the GFC but sold most of it later on. I guess it is a good way to show the cash is real and the Management do care about improving the share price.

(Not Vested)