China Sunsine Chemicals Holdings

[Bluechipfan]

For Sunsine, the net profit for the first three months ended March 31, 2017, which is typically its weakest quarter, rose 70 per cent to 57.2 million rmb from 33.6 million a year ago.

For 1Q18, Sunsine has not provided any guidance yet but based on Yanggu's guidance, they forecasted a growth of 163-178% yoy on 1Q18 net profit. If Yanggu is seeing an increase, Sunsine should do likewise and given its bigger base, I would be happy if Sunsine's 1Q18 see an increase of 80-100% in net profit.

[portuser]

Yanggu Huatai's annual report is quite detailed. 

Page 15 shows 21% as the gross profit margin of rubber accelerators in 2017. Rubber accelerators accounted for only 30% of Yanggu Huatai revenue (page 14). Other products (such as anti-scorching agents), which made up the remaining 70%, had a combined gpm as high as 31%. 

China Sunsine does not reveal the gpm of each product group, but that of rubber accelerators, which accounted for 70% of group revenue, should be close to the group gpm of  28.8%.

Yanggu Huatai's optimissim on a very strong 1Q18 profit (between RMB 90m and RMB 95m) may have been based on high prices of anti-scorching agents. 

CIMB has made a forecast for Sunsine 1Q18 profit:

"We expect product prices to remain stable in 1H18F, which likely led to continued earnings growth (c.90% yoy) and sustained net margins of c.15% in 1Q18F for Sunsine." 
https://www.nextinsight.net/story-archiv...price-1-40

Given that Sunsine's 1Q17 profit was RMB 57m, CIMB's bets for 1Q18 are:
RMB 108m (90% higher than RMB 57m) for profit, and  
RMB 720m (= RMB 108m / 15%) for revenue.

[tiongkokgor]

Last week drop in Sunsine's share price to $1.25 was uncalled for.

US tariffs on Chinese passenger car and truck tires were imposed since 2015. Last week tariffs announcement did not include passenger car and truck tires.

http://www.tirebusiness.com/article/2018...to-tariffs

As PORTUSER's 4 April post has highlighted, Sunsine's sales volumes continue to increase after 2015.

[Bluechipfan]

After the sale of the treasury shares, the shares transacted at the market hit 37.5m the next day. At that point, I was minded to take note of the dynamic and changes in the shareholding by top shareholders when AR17 is ready.

As far as persons of interest to me are concerned, there was no changes to Chairman's holding but he has his personal holding of roughly 2.89 million shares parked under nominee account now. Ostensibly, Mr Chia Kee Koon increases his stake and Mr Robert Stone on the other hand, reduced his holding quite significantly.  

Also worth of note is the increase of the share holdings by the various nominees. Overall, I find the information neutral at best as there is no telling whether any big shareholders have opted to park their shares with nominees for individual purpose. There is also no telling whether the 'institutional' investors who received the placement of treasury shares have sold out or still holding to their shares. 

Nevertheless, with 37.5m shares transacted and with the increase of net shareholders by 201, the shares are more liquid now. With the eps now hovering around sgd 15 cents and likely to move up from this level, I hope there will be bonus share of 1 for 2 or even 1 for 1 in the not too long future.  

[cyclone]

Positive Profit Alert

China Sunsine Chemical Holdings Ltd. announced that, based on the preliminary assessment of the information currently available, including the unaudited financial statements for the 1st quarter ended 31 March 2018 ("1Q2018"), the Group is expected to report a substantial increase in consolidated net profit, compared to the corresponding period from 1 January 2017 to 31 March 2017.

The expected profit growth is mainly due to the increase in both average selling price ("ASP") and sales volume of the Group’s products. As disclosed in several of its prior results announcements, the Chinese government has been placing more emphasis on environmental protection, and more frequent environmental protection inspections were conducted. Some players in the rubber chemicals industry which failed to meet the relevant environmental regulations were forced to suspend their productions. This had resulted in the short supply in the market. In 1Q2018, the short supply continued, and accordingly, the Group was able to sell more products at a higher ASP.

The above information is based on the preliminary assessment made by the Board. The Company is in the process of finalising its unaudited consolidated results for the reporting period, and the results announcement for 1Q2018 will be released on 25 April 2018.

[piaopiao]

Sunsine has issued proft guidance a few times.

1Q2017 profit was RMB 57 mil.

Any views what will 1Q2018 profit be?

[Bluechipfan]

Sunsine has issued proft guidance a few times.

1Q2017 profit was RMB 57 mil.

Any views what will 1Q2018 profit be?

If past 'standard' is anything to go by, the issuance of positive profit alert usually indicate that the yoy increase is close to 100% if not at least 100%. Hence, 1Q18's profit could well be above rmb 100m. In fact, I believe 2Q18 could see seizable increase too and the last 2Qs would see the increase taper off. All in all, I am hopeful to see net profit of at least rmb 475m for FY18.

[Terry]

Should be on par q4 2017. Around 130m.
Not to be overly aggressive. Their q1 2017 is 57m.

[tiongkokgor]

CIMB's Colin Tan just revised Sunsine's target price to $1.84.

https://www.theedgesingapore.com/china-s...1q-results

Is it possible for Sunsine to produce a profit of RMB 600 mil for the full year ending 31 Dec 2018?

[Bluechipfan]

CIMB's Colin Tan just revised Sunsine's target price to $1.84.

https://www.theedgesingapore.com/china-s...1q-results

Is it possible for Sunsine to produce a profit of RMB 600 mil for the full year ending 31 Dec 2018?

He previously forecasted net profit of rmb 377m for FY18. After 1Q18's results, he has revised his forecast accordingly. It is likely that 1H18's net profit would now exceed rmb 300m but it is too early to tell how 2H18 will fare. Look like Kemai is trying very hard to gain market share (accelerators) despite not being able to list. For YGHT, their product focus is anti scorcher and may pose little threat to Sunsine. Everything else being equal, as long as the industry is growing as a whole, Sunsine should continue to cement its market leader position. Hopefully it can breach rmb 500m for FY18 's net profit.