China Sunsine Chemicals Holdings

Thread Rating:
  • 5 Vote(s) - 5 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#41
The ASP of individual product is obtained from the the table "analysis of sales and volume" in page 9 of the results announcement.
My comparison is between 3Q and 2Q. While the reported 2Q 2012 profit was RMB 11.2m, actual should have been RMB 20.5m if not for the RMB 9.3m on 6PPD trial run in that quarter.

ASP of anti-oxidants ought to be much higher as the open market price of 6PPD used to be twice that of TMQ. It was very likely that 6PPD was sold at a loss in 3Q as production volume was small.

I did not comment on the performance of accelerators in my earlier post because the ASP dipped slightly from RMB 18,900 in 2Q to RMB 18,400 in 3Q on comparable volume of around 16,600 tonnes. You are right in saying that accelerators, the main revenue contributor, could have been the lead culprit of the profit decline. The small price dip of RMB 500 for a tonne of accelerators resulted in a considerable loss of RMB 8.3m for the sales volume.
Reply
#42
(31-10-2012, 07:11 PM)portuser Wrote: The ASP of individual product is obtained from the the table "analysis of sales and volume" in page 9 of the results announcement.
My comparison is between 3Q and 2Q. While the reported 2Q 2012 profit was RMB 11.2m, actual should have been RMB 20.5m if not for the RMB 9.3m on 6PPD trial run in that quarter.

ASP of anti-oxidants ought to be much higher as the open market price of 6PPD used to be twice that of TMQ. It was very likely that 6PPD was sold at a loss in 3Q as production volume was small.

I did not comment on the performance of accelerators in my earlier post because the ASP dipped slightly from RMB 18,900 in 2Q to RMB 18,400 in 3Q on comparable volume of around 16,600 tonnes. You are right in saying that accelerators, the main revenue contributor, could have been the lead culprit of the profit decline. The small price dip of RMB 500 for a tonne of accelerators resulted in a considerable loss of RMB 8.3m for the sales volume.

I wonder how do you derive gross profit by products in previous posting?
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#43
The gross profit is lifted straight from the first page of the results announcement. No derivation was needed:


All products (ie accelerators, antioxidants and insoluble sulphur)
......Total sales ......Sales vol.....Gross profit
........(RMBm).........(tonnes)........(RMBm)
3Q11.....310..............15,847.........77.3
4Q11.....296..............16,292.........60.7
1Q12.....324..............18,333.........68.5
2Q12.....363..............20,411.........72.7
3Q12.....369..............21,437 ........62.4
Reply
#44
Dropping below 20 cents in no time Smile
Reply
#45
The company also put up profit warning.

http://info.sgx.com/webcoranncatth.nsf/V...90035ECDD/$file/CS_4Q2012_Profit_Warning.pdf?openelement
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#46
Another gone-case S-chip....

(21-02-2013, 08:47 PM)CityFarmer Wrote: The company also put up profit warning.

http://info.sgx.com/webcoranncatth.nsf/V...90035ECDD/$file/CS_4Q2012_Profit_Warning.pdf?openelement
Reply
#47
I see 'China' in the company's name, and I stay far far away. Too many rotten S-chips. Most of their PRC leaders have little sense of honesty. Many whom I met are even very proud of their ability to milk the system, play the loopholes and take others for a ride.

Invest in China stocks at your own risk.
Reply
#48
(22-02-2013, 12:20 AM)investor101 Wrote: I see 'China' in the company's name, and I stay far far away. Too many rotten S-chips. Most of their PRC leaders have little sense of honesty. Many whom I met are even very proud of their ability to milk the system, play the loopholes and take others for a ride.

Invest in China stocks at your own risk.

This is type of fear that allows Mr. Sam to pick up Yamada at PE of around 2. It helps a lot for him. Tongue

Well, it does not mean this company worth to put money in now, but if it drops to PE around 2, it is definitely worth a thought.

(not vested)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply
#49
As a business owner Mr Sam have direct access to accounts, influence decisions, derive synergies, send own auditors, etc which passive investors can't do.

That is a big difference and why I've learnt not to lament or act on such things because there is market segmentation of opportunities. When it has become a fact, then revisit and analyse again the angle when the business owner is willing to put their $ where their mouth is. losing out in the first 100% move is better than being stuckist in a value trap or worse a scam Smile
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward

Think Asset-Business-Structure (ABS)
Reply
#50
The suggestions that there is skulduggery may not be valid.
The accounting entry errors relating to inter-company transactions in 2011 resulted in China Sunsine under-reporting its profit for that year by RMB 10.96 m. There was no attempt to dress up the accounts.
Reply


Forum Jump:


Users browsing this thread: 3 Guest(s)