China Sunsine Chemicals Holdings

[piaopiao]

For price referencing.

AmFraser's analyst Renfred Tay's 27 Oct 2014 report on Sunsine valued the co. at $0.69.

An article on his report may be found at www.nextinsight.net homepage.

He used PE of 7 times FY2015 projected earnings.

At PE of 10 times, this is a $1 stock.

In 2011 Nestle bought 60% of Hsu Fu Chi, a Guangdong based co., at 26 times earnings.

[CityFarmer]

In 2011 Nestle bought 60% of Hsu Fu Chi, a Guangdong based co., at 26 times earnings.

The reference is pretty irrelevant. Hsu Fu Chi is in food industrial, while the company is in chemical processing??

[greengiraffe]

In 2011 Nestle bought 60% of Hsu Fu Chi, a Guangdong based co., at 26 times earnings.

The reference is pretty irrelevant. Hsu Fu Chi is in food industrial, while the company is in chemical processing??

If co turns into one of the common poison "S Chips" then may be PER zero...

Not Vested
GG

[Bluechipfan]

In 2011 Nestle bought 60% of Hsu Fu Chi, a Guangdong based co., at 26 times earnings.

The reference is pretty irrelevant. Hsu Fu Chi is in food industrial, while the company is in chemical processing??

If co turns into one of the common poison "S Chips" then may be PER zero...

Not Vested
GG

I don't consider this a responsible statement from a senior and season member. While we appreciate cautionary views from time to time, such views have to be made based on facts. Granted you may say this is your opinion but you are responding directly to another person's view on Sunsine. Therefore, you cannot say this is just a general cautionary view on S chips and did not refer directly to Sunsine. Don't forget CMHP is also a S chip and if I am not wrong, you are also vested?

[CityFarmer]

In 2011 Nestle bought 60% of Hsu Fu Chi, a Guangdong based co., at 26 times earnings.

The reference is pretty irrelevant. Hsu Fu Chi is in food industrial, while the company is in chemical processing??

If co turns into one of the common poison "S Chips" then may be PER zero...

Not Vested
GG

I don't consider this a responsible statement from a senior and season member. While we appreciate cautionary views from time to time, such views have to be made based on facts. Granted you may say this is your opinion but you are responding directly to another person's view on Sunsine. Therefore, you cannot say this is just a general cautionary view on S chips and did not refer directly to Sunsine. Don't forget CMHP is also a S chip and if I am not wrong, you are also vested?

It is not an unreasonable statement from GG, IMO, even though I am cautiously optimistic on the company.

It didn't say the company is worth-less, but it is saying the company will worth much less IF it behaves as those lousy S-Chip counters.

[Bluechipfan]

In 2011 Nestle bought 60% of Hsu Fu Chi, a Guangdong based co., at 26 times earnings.

The reference is pretty irrelevant. Hsu Fu Chi is in food industrial, while the company is in chemical processing??

If co turns into one of the common poison "S Chips" then may be PER zero...

Not Vested
GG

I don't consider this a responsible statement from a senior and season member. While we appreciate cautionary views from time to time, such views have to be made based on facts. Granted you may say this is your opinion but you are responding directly to another person's view on Sunsine. Therefore, you cannot say this is just a general cautionary view on S chips and did not refer directly to Sunsine. Don't forget CMHP is also a S chip and if I am not wrong, you are also vested?

It is not an unreasonable statement from GG, IMO, even though I am cautiously optimistic on the company.

It didn't say the company is worth-less, but it is saying the company will worth much less IF it behaves as those lousy S-Chip counters.

Price Earning Ratio Zero. Zero times whatever is zero. Not saying or implying the company is worthless? At least provide some facts to substantiate or support the statement and not simply pin it on the company being a S chip. Bias is what I see it especially the statement maker himself is heavily vested in another S chip.

[specuvestor]

I have to agree with bluechipfan that we do need to substantiate one liners with ABSOLUTE implications for example "buy now before it's too late". Would be different if GG provides some basis or had provided basis previously in the thread which we missed.

OTOH GG has substantiated sufficiently why he is in the other S-chip. We just have to read before jumping to conclusion

[simpleman]

Has Greengiraffe, a posting freak, ever studied Sunsine. If not, it is irresponsible for him to comment on Sunsine thread:

[/i]"If co turns into one of the common poison "S Chips" then may be PER zero...”

[i]His comment on Sunsine is even more regrettable as he himself was upset with forummers’ concerns about China Merchants Holdings Pacific, when he wrote on 6 Nov, 6.33pm:

“ I m surprise that no one is interested to buy a growing quality cash generating defensive infrastructure asset based in China.

Why does everyone keep worrying about dilution on CBs which is already known? Like I always been asking... its the intentions of the serious buyers that I m more interested.

Vested
Core
Looking to Raise Position

BUY till it HURTS
GG”

[budgetier]

For price referencing.

AmFraser's analyst Renfred Tay's 27 Oct 2014 report on Sunsine valued the co. at $0.69.

An article on his report may be found at www.nextinsight.net homepage.

He used PE of 7 times FY2015 projected earnings.

At PE of 10 times, this is a $1 stock.

In 2011 Nestle bought 60% of Hsu Fu Chi, a Guangdong based co., at 26 times earnings.

Thank you, for your reference to P/E for estimating the share price of a company, and the link to AmFraser's article on Sunsine. The analyst's use of Sunsine's histrorical trading high P/E of 6-7x to arrive at the projected share price of 69cts seems fair and reasonable.

Given Sunsine's bright prospects ahead, we can be hopeful of even higher share price than 69cts. Something to cheer for.

Thank you also to other readers who gave their views.

A good weekend to all.

[Curiousparty]

How enduring is Sunsine competitive edge, given China's extremely competitive landscape?
(economies of scale, attention to environmental protection, accreditation, rate of vehicle growth, great leadership?)


Some questions to ponder over:-
a. How far is it ahead of its nearest competitors?
b. Is there no way for its competitors to catch up?
c. To what extent will vehicle control in large cities impact on the demand for sunsine's product?
d. Is there any succession issue when chairman retires? (e.g. tussle for power, etc)

Lots of example from other S-chip to learn from...
a. many investors once thought China Essence was at the Top of the World when its share price was more than $1. It is now trading at less than 1 cent.
b. As we have seen in Sinograndness case, there is no way for share price to keep shooting to the moon every week.
c. Dukang - it is trading at 13 cents now. Its peak was 90 cents.

If the company is so good, why didn't the company do more share buyback?
Is it because they cannot afford the cash or is it because they have better use for their cash else where?
Or the company thinks the share price is already "too expensive" to do share buy-back?

No matter how good a counter it might be, fundamentally, it is an S chip, and all the usual cautionary notes/rules for S-chip counters would apply.
tks.

In 2011 Nestle bought 60% of Hsu Fu Chi, a Guangdong based co., at 26 times earnings.

The reference is pretty irrelevant. Hsu Fu Chi is in food industrial, while the company is in chemical processing??

If co turns into one of the common poison "S Chips" then may be PER zero...

Not Vested
GG