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1 more month or so before the release of FY16 results. Since my last post, the company continued to buy back more shares with as high as 50.5 cents a share. It seems that another record year in term of revenue is a foregone conclusion. The company has taken care of and do well for the top line. The new plant slated to be completed this year shows the company's intention to push for more sales. Top line should continue to grow and with reasonable margin, the bottom line is bounce to benefit too especially with dwindling debt. By my reckoning, no more than 40m rmb should be outstanding by March 2017. 1q17 results should confirm this.
With the development in China's Emission Trading Scheme, it is likely that Sunsine - which is expected to keep its carbon emission low resulting in excess quota- can sell their allotted carbon quota. This is another source of income and I would also like to see the contribution of their Fulong hotel/convention business though I suspect the latter is more of facilitating the company overall business strategy rather than to 'venture' into non core business. A bit akin to the steam factory sunsine built.
In gist, we would see record revenue for FY16 and the overall profit could even surpass FY15's rmb 195m (restated from 206m due to more tax paid as bonuses earmark for payment was retained instead which mean more tax for higher profit). In term of dividend, 1.5 cents should be the minimum and 2017 being the 10th anniversary of listing in SGX, I hope there will be SD to commemorate the occasion.
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(21-01-2017, 12:01 PM)Bluechipfan Wrote: 1 more month or so before the release of FY16 results. Since my last post, the company continued to buy back more shares with as high as 50.5 cents a share. It seems that another record year in term of revenue is a foregone conclusion. The company has taken care of and do well for the top line. The new plant slated to be completed this year shows the company's intention to push for more sales. Top line should continue to grow and with reasonable margin, the bottom line is bounce to benefit too especially with dwindling debt. By my reckoning, no more than 40m rmb should be outstanding by March 2017. 1q17 results should confirm this.
With the development in China's Emission Trading Scheme, it is likely that Sunsine - which is expected to keep its carbon emission low resulting in excess quota- can sell their allotted carbon quota. This is another source of income and I would also like to see the contribution of their Fulong hotel/convention business though I suspect the latter is more of facilitating the company overall business strategy rather than to 'venture' into non core business. A bit akin to the steam factory sunsine built.
In gist, we would see record revenue for FY16 and the overall profit could even surpass FY15's rmb 195m (restated from 206m due to more tax paid as bonuses earmark for payment was retained instead which mean more tax for higher profit). In term of dividend, 1.5 cents should be the minimum and 2017 being the 10th anniversary of listing in SGX, I hope there will be SD to commemorate the occasion.
2 typo: the highest share buyback price should be 50 cents and not 50.5 cents. The profit for fy15 was restated from 202m and not 206m. Also, I meant by March 2017 sunsine should have totally no debt and not with outstanding of rmb 40m. This is based on their disclosure. Their last loan is due in March 2017. If they repaid it early, they could even be debt free earlier.
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Bluechipfan
I believe your point that Sunsine's last loan is due in March 2017 is drawn from the following announcement, which gave 10 March 2017 as the due date of the RMB 48m loan from Rural Credit Cooperative of Shandong:
(Sunsine's announcement dated 3 March 2015)
http://infopub.sgx.com/FileOpen/CS_Discl...eID=337318
Borrowings that are due on 10 March 2017 would have been classified as non-current liabilities as at end-2015.
But outstanding borrowings at end-2015 were current, made up of the following (page 84 of 2015 annual report):
(1) RMB 15m in local currency, and
(2) RMB 129.9m in US$.
In 3 March 2015 announcement, Sunsine disclosed taking up US$ 20m loan (equivalent to RMB 123m based on the exchange rate then) due 26 Nov 2016, to replace some RMB loans, which bore higher interest rates.
It is likely that the RMB 83.4m current borrowing as at 30 Sep 16 was the residual amount of the US$ loan, which was subsequently repaid on 26 Nov 2016.
Sunsine should be debt-free by now.
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(21-01-2017, 06:41 PM)portuser Wrote: Bluechipfan
I believe your point that Sunsine's last loan is due in March 2017 is drawn from the following announcement, which gave 10 March 2017 as the due date of the RMB 48m loan from Rural Credit Cooperative of Shandong:
(Sunsine's announcement dated 3 March 2015)
http://infopub.sgx.com/FileOpen/CS_Discl...eID=337318
Borrowings that are due on 10 March 2017 would have been classified as non-current liabilities as at end-2015.
But outstanding borrowings at end-2015 were current, made up of the following (page 84 of 2015 annual report):
(1) RMB 15m in local currency, and
(2) RMB 129.9m in US$.
In 3 March 2015 announcement, Sunsine disclosed taking up US$ 20m loan (equivalent to RMB 123m based on the exchange rate then) due 26 Nov 2016, to replace some RMB loans, which bore higher interest rates.
It is likely that the RMB 83.4m current borrowing as at 30 Sep 16 was the residual amount of the US$ loan, which was subsequently repaid on 26 Nov 2016.
Sunsine should be debt-free by now.
Thanks Portuser. I follow your reading of the information and it does make perfect sense. The loan that due on 10.3.17 could have been replaced and repaid. The announcement on 3.3.15 still have to list those loans that will be replaced by the usd 20m new loan as time needed to carry out the repayments. Since then, no new loan so no more disclosure save for the information in AR15, which I agree with your interpretation and if that's the case, it had been paid off by 26.11.16. That really bode well for Sunsine and its shareholders.
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Among the 60 model manufacturing enterprises identified by the Ministry of Commerce and Information Technology (工信部) of China, China Sunsine ranks number 8.
Moutai Baijiu ( 茅台 ) tops the list, followed by Pearl River (珠江) a well-known piano maker.
http://finance.china.com.cn/news/20161125/4003437.shtml
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Good morning,
Aniline price has come up (see link). Is this good or bad for Sunsine?
( http://www.sunsirs.com/uk/prodetail-258.html)
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Budgetier,
Rubber accelerator price is pegged to raw material prices. Sunsine stated in its 3Q results announcement that "although some of the raw material prices increased in 3Q2016, with international crude oil prices remaining depressed, we do not expect that our overall raw material prices will increase significantly, similarly our selling prices.".
From the website you referred, one can see that in 2016 aniline price was RMB 7,508 in June, RMB 6,178 in Sep and RMB 8,808 in Dec.
The price on Feb 12 2017 was RMB 10,050. Sunsine's should have done well in 4Q 16.
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Company appointed Xu Xian Lei as Group First Deputy General Manager today. He was previously the assistant to the general manager of Shandong Sunsine, a subsidiary of the company. Worth noting is that he has increased his shareholding from 7,639,000 shares as listed in FY2013 AR to 12,840,200 as listed in FY2015 AR. In addition, in the announcement made in SGX pertaining to the appointment today, his shareholding is listed as 13,838,800 shares. He has again increased his share holding by close to a million shares within a year. This show the confidence the insider have in the company and this is indeed positive. I won't be surprised the other major shareholders have likewise increased their holdings over the last 1 year. Shall find out in the upcoming 2016 AR soon.
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Directors and staff have large stake in Sunsine -- they collectively hold 315,246,300 shares, or 68% of the outstanding shares.
Chairman and staff set up Success More, which is Sunsine largest shareholder with 293,642,550, or 63.4%, of the compay's shares. Chairman himself owns 74% of Success More.
Chairman also holds 2,869,000 Sunsine shares directly.
Independant Director Koh Choon Kong holds 4,176,000 shares, and CEO Liu Jing Fu 720,000 shares.
Lastly, as announced recently in SGX, Xu Xian Lei, the newly-appointed First Deputy GM, holds 13,838,800 shares.
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28-03-2017, 10:34 AM
(This post was last modified: 28-03-2017, 10:57 AM by tiongkokgor.)
Sharing this well-written analysis of China Sunsine at Nextinsight
https://nextinsight.net/story-archive-ma...ess-than-6
The company has grown without rights issue and share placement. Moreover, it has been paying dividend every year after listing, and has bought back 5.5% of its own shares.
More importantly, tyres have to be replaced regularly, and demand for rubber accelerators should be rising.
Sunsine is in a comfortable position to expand as it has ready infrastructure and cash. Its main rivals, Kemai and Yanggu Huatai, are having difficulty in raising the cash for expansions.
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