China Sunsine Chemicals Holdings

[banker]

Hi all, a few things for clarification and my thoughts/replies:

(1) The meeting was cordial and no "lawyer letter" or any sort was mentioned.

(2) @HitandRun, the meeting was arranged at hustle and wasn't actually an "analyst briefing". Retrospectively, you wouldn't want to invite more OPMI shareholders who will most probably stand with the 3 IDs (1 lawyer and 2 auditors) against 1 lone person!

(3) I didn't ask how they manage to pick up my post. My educated guess is that more than a few shareholders (and have direct access to them) in this forum bought this up to Benny Lim. At least 1 of the IDs (I can't remember who) confessed that they don't go to forums or blog of any sort.

(4) Take note that i had offered a personal apology for the "wording", but my opinion hasn't changed. You could google Benny Lim on Bloomberg to check out his full CV. To his full credit, he has mentioned to me that as ID, he is ready to stand up to scrutiny and i applaud him for that.

(5) It is not CSC's Mgt, but its BOD that is in consideration here. One thing i do find out of the norm would be Benny Lim inviting the other 2 local IDs into the call - i would infer that there is close communication/transparency between the working IDs of CSC based on this observation.

(6) @piaopiao, i am glad to get your respect. On the contrary, i believe this is a good thing for investment forums like valuebuddies and its forumers - (1) This demonstrates the importance of using facts and thinking twice before posting. One needs to be ready to back their own posts. This is 1 of the attributes that will differentiate valuebuddies against the other sharing platforms. (2) As forumer Karlmarx mentioned, the importance of a platorm to share info.

Thanks ....
1) How did they establish/prove their identity over the phone to ensure you were really talking to the correct people? 
2) Did Mr Benny Lim explain anything on ZIWO as that was one of the point in this thread? 
3) I guess the other 2 IDs are not related to ZIWO then what is the need of their presence in the call.

[weijian]

Hi all, a few things for clarification and my thoughts/replies:

(1) The meeting was cordial and no "lawyer letter" or any sort was mentioned.

(2) @HitandRun, the meeting was arranged at hustle and wasn't actually an "analyst briefing". Retrospectively, you wouldn't want to invite more OPMI shareholders who will most probably stand with the 3 IDs (1 lawyer and 2 auditors) against 1 lone person!

(3) I didn't ask how they manage to pick up my post. My educated guess is that more than a few shareholders (and have direct access to them) in this forum bought this up to Benny Lim. At least 1 of the IDs (I can't remember who) confessed that they don't go to forums or blog of any sort.

(4) Take note that i had offered a personal apology for the "wording", but my opinion hasn't changed. You could google Benny Lim on Bloomberg to check out his full CV. To his full credit, he has mentioned to me that as ID, he is ready to stand up to scrutiny and i applaud him for that.

(5) It is not CSC's Mgt, but its BOD that is in consideration here. One thing i do find out of the norm would be Benny Lim inviting the other 2 local IDs into the call - i would infer that there is close communication/transparency between the working IDs of CSC based on this observation.

(6) @piaopiao, i am glad to get your respect. On the contrary, i believe this is a good thing for investment forums like valuebuddies and its forumers - (1) This demonstrates the importance of using facts and thinking twice before posting. One needs to be ready to back their own posts. This is 1 of the attributes that will differentiate valuebuddies against the other sharing platforms. (2) As forumer Karlmarx mentioned, the importance of a platorm to share info.

Thanks ....
1) How did they establish/prove their identity over the phone to ensure you were really talking to the correct people? 
2) Did Mr Benny Lim explain anything on ZIWO as that was one of the point in this thread? 
3) I guess the other 2 IDs are not related to ZIWO then what is the need of their presence in the call.

hi banker, my replies as below:

(1) I got BL's email and contacted him.
(2) BL talked about ZIWO's customer claims and stated that it fully passed all the audits and lawyer checks.
(3) The other 2 IDs didn't say anything much when ZIWO was been discussed. Their own request was to make it very clear not to link ZIWO with CSE.

[Young Investor]

On 10 May 17, Sunsine announced sale of treasury shares and stated that "The net sales proceeds of approximately S$17.5 million will be retained by the Company for payment of dividends in the future."

Recently, there was intense debate on how Sunsine can pay dividends from the share sale proceeds.

Yesterday, Sunsine paid out 0.5 S'pore cent as interim dividend, and followed up with an announcement that "The use of Net Proceeds as stated above is in accordance with the intended use as stated in the Company’s announcement on 10 May 2017."

[Sfsh12]

http://news.cnstock.com/news,bwkx-201708-4119710.htm

多因素叠加 橡胶助剂价格单边上涨
0 缩小文字 2017-08-23 08:15:31 来源：中国证券网 作者：
　　中国证券网讯 “橡胶助剂产业未来会向寡头化发展，行业集中度会加强，大型企业会有更强的定价权。”有业内人士表示，环保压力越来越大，环保成本也在不断上涨，企业只能通过价格提升来消化，再叠加产能的不足，短时间内橡胶助剂价格仍然会处于上升态势。

　　据上海证券报8月23日消息，和精细化工产业的诸多分支一样，橡胶助剂产业的不少产品今年以来也掀起一波涨价潮。“原材料价格的上涨，环保限产造成的产能不足，下游需求的增加，是这波涨价潮的主因。”一位业内人士指出。

　　橡胶助剂是橡胶产业链条中的一环，其上游原材料主要对应盐化工、煤化工、石油化工行业，其下游主要应用于轮胎行业，市场需求占比约七成，胶带、胶鞋、胶管等产品则占据剩余份额。

　　从原材料端看，各类原材料中，苯胺占有的份额最大，直接用于制造促进剂、防老剂等。用于生产防老剂的其他原料如二苯胺、氨基二苯胺等，也都是以苯胺为原料生产。因此，苯胺价格的走势对橡胶助剂产品的影响重大。

　　通过查询了解到，自2016年9月开始，苯胺价格便走入快速上涨周期，至今年5月，其市场均价已从6000余元/吨飙升至10000元/吨。虽然随后于7月底曾一度快速下滑至7500元/吨，但进入8月份之后，其价格再度暴涨，又一次摸高万元关口。

　　值得一提的是，苯胺主要生产基地山东地区近期环保承压，诸多中小型苯胺生产企业被迫停产。此外，叠加山东地区大型苯胺生产企业的停机检测、降负荷生产等因素，整体行业开工率明显下滑。

　　从下游方面来看，橡胶助剂近七成用于轮胎生产，其市场需求主要取决于轮胎市场。有轮胎企业高管向记者透露，今年来轮胎产量稳步增长，上半年总产量实现了超过7%的增长。8月份以来，多家轮胎企业纷纷上调轮胎出厂价。短期来看，进入8、9月份，轮胎行业将面临季节性的需求旺季，橡胶助剂下游需求有望稳步提升。

　　从库存量上来看，橡胶助剂今年以来一直处于低库存运行。橡胶助剂工业半年报显示，今年3、4月份，骨干企业多数零库存的情况，到6、7月份，一些企业开始有适量的库存，预计下半年多数企业可以做到“适量库存，稳定供应”。

　　“价格的传导方向是一定的，上游到中端再到产业下游，环环相扣。”前述业内人士表示，助胶剂产业同样处于化工行业，目前整个产业链最大的压力是环保限产，很多中小型企业因为排放不达标等因素直接关停。

　　“空前绝后，我只能用这个词来形容现在的环保压力。”山东某环保部门人士向记者感叹道。“中央环保督察组进驻山东后，我们现在处于24小时随时待命状态，很多同事甚至直接住在办公室，发现环评不达标企业，立即赶赴现场，并对违规企业作出关停处理。”

　　另据橡胶助剂工业半年报显示，上半年橡胶助剂总产量为60.2万吨，其中促进剂约20.8万吨、防老剂约19.7万吨，销售收入为98.9亿元，同比增长率分别为-3.2%、-0.5%、-4.4%、-1.4%；出口量19.3万吨，同比增长7.2%。

　　下半年环保督查的进一步加强，再叠加需求端不断增长，橡胶助剂价格未来上涨动力依然充足。有业内人士表示：“今年以来，橡胶助剂各类产品都处于货源紧张的状态，供给端不断收缩，是造成产品价格不断攀升的主因。”

　　记者从橡胶助剂专业委员会方面了解到，促进剂在2016年下半年一直处于货源紧张、价格持续上涨状态，高热稳定性不溶性硫磺今年上半年也一直处于供货紧张状态，几乎无库存，其产品主要生产商山东尚舜化工有限公司年产3万吨装置一直处于满负荷状态。

　　“新增2万吨高热稳定性不溶性硫黄装置本来预计今年9月份便能投产，但因为新一轮的环保核查，预计投产时间将后移至今年四季度。”阳谷华泰一高管称，现在公司基本上一直处于零库存状态。

　　统计发现，橡胶助剂华东地区主要产品促进剂M和防老剂4020的价格，分别较去年同期上涨26%和36%。“单看涨幅，橡胶助剂这个行业并没有那么耀眼，但平均两成左右的涨幅，在行业内已经算是史无前例。”一位不愿具名的业内人士称。

　　在橡胶助剂的另一个产品防焦剂CTP领域，阳谷华泰一直处于绝对垄断地位，长期占据全球三分之二的份额，其价格多年来一直稳定在3万元/吨的水平线上。但今年以来，其价格也在不断攀升。据了解，阳谷华泰方面9月份的最新报价已经到达34000元/吨，并且同样处于供货紧张的状态。

　　产品端的不断涨价，对于阳谷华泰方面便是净利润的快速增长。公司日前披露半年度业绩预告，预计上半年盈利8096.31万元至9595.63万元，同比增长35%至60%。

　　就能否增加新产能的疑问，有业内人士表示：“助胶剂是精细化工的分支，其技术壁垒、配方保密程度都难以在短期内突破，并且在环保趋严的态势下，新产能已经很难再获批。”

　　另一方面，橡胶助剂产业“三废”的处理难度明显高于产业链中其他品种。近年来，不规范企业因“三废”问题频频遭到关停，但进行环保整改、重新开工并非想象中的那样容易，整改费用让大部分企业望而却步。

　　“公司仅环保设备固定投资上便达到1.5亿元，这还不算运营成本，1吨废料的处理成本大约在800元至1000元。不单单是中小企业，很多大型企业也曾因为环保核查停机。”阳谷华泰方面人士表示。

　　“橡胶助剂未来会向寡头化发展，行业集中度会加强，大型企业会有更强的定价权。”某业内人士表示，环保压力越来越大，环保成本也在不断上涨，企业只能通过价格提升来消化，再叠加产能的不足，短时间内，橡胶助剂价格仍然会处于上升态势。

[tiongkokgor]

Yanggu Huatai (YGHT), a China listed company, is probably Sunsine's closest competitor.

But they are far far behind Sunsine ......

1) In May this year, YGHT wanted to do a rights issue to raise RMB 750 mil but it has not been approved by the authorities yet.

http://disclosure.szse.cn/ finalpage/2017-05-06/ 1203482541.PDF

2) YGHT was queried by the authorities in July 2017 during the process of preparing for the rights issue. The queries and responses document can be found at http://www.cninfo.com.cn/finalpage/2017-...710612.PDF.

Page 35 of the above document mentioned that YGHT has debts of RMB 683 mil as of 31 Mar 2017.

Sunsine has ZERO debts and far better financial position.

With pollution controls by the government severely in place, authorities controlling additional rubber chemicals capacity and with banks tightening lending to the rubber chemical industry, it is likely that Sunsine has the upper hand.

[Bluechipfan]

YGHT FY17's eps likely to hit rmb 92 cents followed by rmb 1.13 and 1.36 for years 2018 and 2019 respectively according to a house in China. In sgd it will be 19 cents, 23 cents and 28 cents respectively. In term of pe based on current price of about sgd 3.10, it is 17x, 14x and 11x respectively. This is but one of the many factors that made me accumulating sunsine shares even at current price level.

[Young Investor]

The following from China Sunsine 2Q results announcement:

"2Q2017 Sales volume for Accelerators increased by 5% to 21,334 tons as compared to 20,222 tons in 2Q2016, mainly due to some of our competitors’ production being affected by the stringent environmental protection standards imposed by the authorities. However, the sales volume for Insoluble Sulphur (“IS”) and Anti-oxidant products in 2Q2017 decreased by 6% and 7%, to 4,913 tons and 7,893 tons respectively. The decrease was mainly due to the decreased demand from domestic tyre manufacturers, as their utilisation rate decreased in 2Q2017 as a result of decreased rubber price."

If domestic tyre manufacturers require less IS and anti-oxidants, demand for rubber accelerators should be less too.

Any shareholders have the answer?

Thanks.

[Bluechipfan]

The following from China Sunsine 2Q results announcement:

"2Q2017 Sales volume for Accelerators increased by 5% to 21,334 tons as compared to 20,222 tons in 2Q2016, mainly due to some of our competitors’ production being affected by the stringent environmental protection standards imposed by the authorities. However, the sales volume for Insoluble Sulphur (“IS”) and Anti-oxidant products in 2Q2017 decreased by 6% and 7%, to 4,913 tons and 7,893 tons respectively. The decrease was mainly due to the decreased demand from domestic tyre manufacturers, as their utilisation rate decreased in 2Q2017 as a result of decreased rubber price."

If domestic tyre manufacturers require less IS and anti-oxidants, demand for rubber accelerators should be less too.

Any shareholders have the answer?

Thanks.

Based on China rubber association's (not sure I translate correctly or not) statistic, the overall rubber chemical products registered 3.2% decrease over 1H16. For accelerators the total production for 1H17 is 200,800 tons, a decrease of 0.5% compare to 1H16. The cause for the overall decrease was due to the close down/stop work of some small and middle factories that did not meet stringent environmental protection standards. However, big enterprise such as Sunsine, YGHT and Kemai were not affected and also benefited from the overall shortfall and were able to sell more of their accelerators. ASP also increased. On the other hand, there aren't too many IS and anti-oxidant producers and the effect of the decrease in demand is more keenly felt.

[portuser]

Lower industry supply of rubber accelerators arising from actions against non-compliance of pollution control standards presents opportunities for Sunsine to sell more. 

Stronger rubber accelerator export could also have contributed to higher sales volume.   

Sunsine's 2Q17 export volume (comprising rubber accelerators, insoluble sulpher and anti-oxidants) was 1,280 tonnes more than the same period of 2016, very close to the 1,112 tonnes of rubber accelerator sales volume increase.

Insoluble sulpher and anti-oxidants are Sunsine's newer products, and are largely sold locally. 

Sunsine started producing rubber accelerators back in 1994. It is now the world's largest, and more than one-third of its rubber accelerator output is exported.  

The fact that 2Q17 exports were mainly rubber accelerators can also be established by the following:

....................................ASP (RMB/tonne) in 2Q17
Rubber accelerators............21,700
Insoluble sulpher.................10,600
Anti-oxidants.......................16,400

Given that ASPs of insoluble sulpher and anti-oxidants were much lower than that of rubber accelerators, and as average export price of RMB 21,200 was very close to the ASP of rubber accelerators; it is a reasonable inference that rubber accelerators formed the bulk of export.

[tiongkokgor]

http://news.cnstock.com/news,bwkx-201708-4119710.htm

多因素叠加 橡胶助剂价格单边上涨
0 缩小文字 2017-08-23 08:15:31 来源：中国证券网 作者：
　　中国证券网讯 “橡胶助剂产业未来会向寡头化发展，行业集中度会加强，大型企业会有更强的定价权。”有业内人士表示，环保压力越来越大，环保成本也在不断上涨，企业只能通过价格提升来消化，再叠加产能的不足，短时间内橡胶助剂价格仍然会处于上升态势。

　　据上海证券报8月23日消息，和精细化工产业的诸多分支一样，橡胶助剂产业的不少产品今年以来也掀起一波涨价潮。“原材料价格的上涨，环保限产造成的产能不足，下游需求的增加，是这波涨价潮的主因。”一位业内人士指出。

　　橡胶助剂是橡胶产业链条中的一环，其上游原材料主要对应盐化工、煤化工、石油化工行业，其下游主要应用于轮胎行业，市场需求占比约七成，胶带、胶鞋、胶管等产品则占据剩余份额。

　　从原材料端看，各类原材料中，苯胺占有的份额最大，直接用于制造促进剂、防老剂等。用于生产防老剂的其他原料如二苯胺、氨基二苯胺等，也都是以苯胺为原料生产。因此，苯胺价格的走势对橡胶助剂产品的影响重大。

　　通过查询了解到，自2016年9月开始，苯胺价格便走入快速上涨周期，至今年5月，其市场均价已从6000余元/吨飙升至10000元/吨。虽然随后于7月底曾一度快速下滑至7500元/吨，但进入8月份之后，其价格再度暴涨，又一次摸高万元关口。

　　值得一提的是，苯胺主要生产基地山东地区近期环保承压，诸多中小型苯胺生产企业被迫停产。此外，叠加山东地区大型苯胺生产企业的停机检测、降负荷生产等因素，整体行业开工率明显下滑。

　　从下游方面来看，橡胶助剂近七成用于轮胎生产，其市场需求主要取决于轮胎市场。有轮胎企业高管向记者透露，今年来轮胎产量稳步增长，上半年总产量实现了超过7%的增长。8月份以来，多家轮胎企业纷纷上调轮胎出厂价。短期来看，进入8、9月份，轮胎行业将面临季节性的需求旺季，橡胶助剂下游需求有望稳步提升。

　　从库存量上来看，橡胶助剂今年以来一直处于低库存运行。橡胶助剂工业半年报显示，今年3、4月份，骨干企业多数零库存的情况，到6、7月份，一些企业开始有适量的库存，预计下半年多数企业可以做到“适量库存，稳定供应”。

　　“价格的传导方向是一定的，上游到中端再到产业下游，环环相扣。”前述业内人士表示，助胶剂产业同样处于化工行业，目前整个产业链最大的压力是环保限产，很多中小型企业因为排放不达标等因素直接关停。

　　“空前绝后，我只能用这个词来形容现在的环保压力。”山东某环保部门人士向记者感叹道。“中央环保督察组进驻山东后，我们现在处于24小时随时待命状态，很多同事甚至直接住在办公室，发现环评不达标企业，立即赶赴现场，并对违规企业作出关停处理。”

　　另据橡胶助剂工业半年报显示，上半年橡胶助剂总产量为60.2万吨，其中促进剂约20.8万吨、防老剂约19.7万吨，销售收入为98.9亿元，同比增长率分别为-3.2%、-0.5%、-4.4%、-1.4%；出口量19.3万吨，同比增长7.2%。

　　下半年环保督查的进一步加强，再叠加需求端不断增长，橡胶助剂价格未来上涨动力依然充足。有业内人士表示：“今年以来，橡胶助剂各类产品都处于货源紧张的状态，供给端不断收缩，是造成产品价格不断攀升的主因。”

　　记者从橡胶助剂专业委员会方面了解到，促进剂在2016年下半年一直处于货源紧张、价格持续上涨状态，高热稳定性不溶性硫磺今年上半年也一直处于供货紧张状态，几乎无库存，其产品主要生产商山东尚舜化工有限公司年产3万吨装置一直处于满负荷状态。

　　“新增2万吨高热稳定性不溶性硫黄装置本来预计今年9月份便能投产，但因为新一轮的环保核查，预计投产时间将后移至今年四季度。”阳谷华泰一高管称，现在公司基本上一直处于零库存状态。

　　统计发现，橡胶助剂华东地区主要产品促进剂M和防老剂4020的价格，分别较去年同期上涨26%和36%。“单看涨幅，橡胶助剂这个行业并没有那么耀眼，但平均两成左右的涨幅，在行业内已经算是史无前例。”一位不愿具名的业内人士称。

　　在橡胶助剂的另一个产品防焦剂CTP领域，阳谷华泰一直处于绝对垄断地位，长期占据全球三分之二的份额，其价格多年来一直稳定在3万元/吨的水平线上。但今年以来，其价格也在不断攀升。据了解，阳谷华泰方面9月份的最新报价已经到达34000元/吨，并且同样处于供货紧张的状态。

　　产品端的不断涨价，对于阳谷华泰方面便是净利润的快速增长。公司日前披露半年度业绩预告，预计上半年盈利8096.31万元至9595.63万元，同比增长35%至60%。

　　就能否增加新产能的疑问，有业内人士表示：“助胶剂是精细化工的分支，其技术壁垒、配方保密程度都难以在短期内突破，并且在环保趋严的态势下，新产能已经很难再获批。”

　　另一方面，橡胶助剂产业“三废”的处理难度明显高于产业链中其他品种。近年来，不规范企业因“三废”问题频频遭到关停，但进行环保整改、重新开工并非想象中的那样容易，整改费用让大部分企业望而却步。

　　“公司仅环保设备固定投资上便达到1.5亿元，这还不算运营成本，1吨废料的处理成本大约在800元至1000元。不单单是中小企业，很多大型企业也曾因为环保核查停机。”阳谷华泰方面人士表示。

　　“橡胶助剂未来会向寡头化发展，行业集中度会加强，大型企业会有更强的定价权。”某业内人士表示，环保压力越来越大，环保成本也在不断上涨，企业只能通过价格提升来消化，再叠加产能的不足，短时间内，橡胶助剂价格仍然会处于上升态势。

I just read this post.

Rubber accelerator prices in China have been escalating.

What is China.Sunsine's own experience?  Any financial significance?