China Sunsine Chemicals Holdings

[Bluechipfan]

Sunsine is gaining visibility in China's financial community. Come across the following article in '7henet', a equities/funds/capital etc research entity in China. For sharing with buddies. Sorry it is in Chinese and quite lengthy.

尚舜化工：橡胶助剂领域的排头兵

时间：2018-04-27 11:35:15 来源：七禾网 作者：七禾研究

橡胶助剂作为一种改善橡胶制品性能而在橡胶加工过程中添加的化工材料，其发展与橡胶工业的发展息息相关，尤其是轮胎制造行业。近年来，在汽车工业与橡胶行业的快速发展下，我国的橡胶助剂行业在全球橡胶助剂市场中所占的份额逐年增加，目前产量已超过世界总产量的75%。中国尚舜化工控股有限公司作为我国橡胶助剂行业的龙头企业，自然也取得了较为快速的增长势头。

产品调结构　规模争第一

尚舜化工成立于1998年，由原国营单县有机化工厂改制而成。改制过后，公司产品也正式从化学溶剂向橡胶助剂领域进军。2005年，发展态势良好的尚舜化工斥资1.5亿元在单县经济技术开发区筹建尚舜工业园，公司规模不断扩大，逐渐成为全国最大的橡胶助剂产销集散地。尚舜化工以转方式、调结构为目标，力求实现产品品质多元化。其中，仅橡胶促进剂就开发了十几个品种。据了解，“十一五”期间，尚舜化工不仅完成了代表着绿色产品方向的重点助剂品种生产线，还建成了3万吨级的生产车间，成功实现年产10万吨的生产量。这也使得尚舜化工在助剂领域拥有了更大的话语权。

2007年7月5日，尚舜化工在新加坡交易所主板上市。股票发行价为0.39新元，共计发行1.2亿新股票，累计融资4680万新元（约3080万美元）。目前，尚舜化工已经成为全球范围内规模较大、品种较全的橡胶助剂生产基地，其主要产品橡胶促进剂系列产品已经连续多年产销位于全球领先水平。公司各项经济指标均连年以20%以上的速度递增。

强化品牌 实现国际化经营

成功在新加坡交易所上市后，尚舜化工也正式走上了规模化、集团化、国际化的道路，成为了一个具有全球视野的上市公司。尚舜化工将上市资金用于扩大生产规模，实现了三次大跨越，与世界轮胎前10强和中国轮胎前10强企业建立了稳定了的供货关系，并成功形成遍布40多个国家700多家客户的强大客户网络。于去年步入“不惑之年”的尚舜化工目前在全球的市场份额接近20％，中国约占31％。在世界前75名轮胎制造商中，超过三分之二是尚舜化工的客户，其中包括普利司通、米其林和固特异等。多年来，尚舜化工持续投入资源进行研发，不断提升生产与环境保护的能力，得以成为行业的领先者。

在国际化经营的同时，尚舜化工也不忘实施品牌战略，打造“助剂行业的世界品牌”。不溶性硫磺产品是子午线轮胎必不可少的助剂，中国市场的70%依赖进口。为了打破国外产品一统中国市场的局面，尚舜化工积极投入科研，最终于2007年成功将其开发。也使得“尚舜·SUNSINE”商标等企业视觉形象深深烙印在各大轮胎及橡胶行业客户的心中。

致力创新 用心科研

尚舜化工的不断发展，与其始终不渝狠抓技术改造，坚持自主创新不无关系。近年来，尚舜化工在研发上的投入超过1000万元，其技术研发中心已经成为具备相当规模的现代化科技研发基地，完成了科技创新成果15项，申请国家发明专利6项，实用新型专利7项，被命名为省级研发中心和山东省高新技术企业。尚舜化工通过健全技术开发机构，加大科技创新投入，改造工业设备等措施，成功将自已从建厂时的“三小”企业，发展为全国橡胶助剂行业的排头兵。

2015年开始，尚舜化工又在生产自动化方面加大了投入，将自动化、智能化作为新起点，通过技术创新、清洁生产技术的推广，实现吨产品能耗降低30%，产品绿色化率达95%以上。在技术创新方面，重点开发橡胶助剂微化工工艺，通过微化工的突破，解决橡胶促进剂高盐有机废水的顽症，进一步实现橡胶助剂的绿色化生产。

环保是一项“生命工程”

作为一家化工类的公司，环保自然是一个逃不过的话题。入行多年，尚舜化工始终坚持将环保当做一项“生命工程”，先后投入近亿元用于节能减排和污染治理，并与多家院校、科研所联合攻关开发绿色环保生产工艺，将其应用于生产一线。首先，尚舜化工从源头上改进生产工艺，增上预处理设施，实现清洁生产；其次，投入大量资金对生产过程中的废水、废气进行彻底的治理，公司先后投入了2亿多元建设污水处理、废气治理、中水回用、尾气回收等一整套环保系统，并稳定运行，取得了良好的社会效益和经济效益。

尚舜化工在全国同行中，率先将超级克劳斯炉引入助剂行业，使得废气的回收率超过99.6%。此外，这一过程中生成的硫磺及其它效益每年达1000余万元。目前，尚舜化工已经在行业绿色发展的进程中起到了领头羊的作用，其橡胶助剂产品的绿色化率已经达到100%，主要助剂产品均符合欧盟REACH法规的要求。为下游企业提供了安全可靠的产品，保障了使用者的健康。

世界汽车工业的高速发展促进着轮胎制造业的发展，也为尚舜化工提供了更加广阔的发展前景。从尚舜化工的股价走势来看，也一直处于稳步上行的态势中。未来，其是否能够获得更进一步的发展，我们可以拭目以待。

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研究员：李烨

[Bluechipfan]

Updated report from Phillip. For sharing with buddies.

[Young Investor]

Article below stated that Provincial committee,Governor Gong Zheng  Heze City, Jining City visited Shangxi ChinaSunsine. The last statement mentioned that he demanded that for such enterprises, all levels of government should go all out to help.

https://mp.weixin.qq.com/s/JEm3Hlr3yryWGByG1jn90g#%23

省长龚正到菏泽济宁调研并到尚舜化工视察工作
2018-04-27 山东尚舜化工有限公司

本报讯： 4月11日-13日，省委副书记、省长龚正到菏泽市、济宁市,就精准脱贫攻坚战、乡村振兴战略、新旧动能转换等工作进行调研和督导落实。4月12日上午，龚省长一行到尚舜化工调研。
在听取了公司董事长徐承秋对公司介绍之后，龚省长指出，尚舜化工是一家有定力的企业，要做到在保证安全、环保达标的基础上，合规经营，充分发挥企业的质量、规模、品种、环保、市场等综合优势，求得更好的发展，同时也要履行好企业的社会责任。龚省长要求，对于这样的企业，各级政府要全力以赴的帮忙扶持。省政府秘书长申长友、菏泽市代市长陈平、县委书记穆杰等领导陪同活动。

[Bluechipfan]

   

Sunsine goes xd on 8.5.18 with payout date on 28.5.18. Total payout sgd 3 cents for FY17. Looking forward to yet another increase of dividend for FY18. The expected eps for FY18 is at least sgd 20 cents and with the payout policy of at least 20%, I am expecting an interim dividend of half a cent to 1 cent on 1H18 and a full year payout of at least sgd 4 cents. Cautiously optimistic that eps will sustain at sgd 20 cents level for foreseeable future and there is room for higher payout In future in view of current relative low payout ratio due to, in my view, conservative approach of the management.

[DCF]

The blanket shut down by the government inspection team will not happen again.

Also with the guideline based on environmental, and legal, Sunsine new expansion should be approved.

http://www.mee.gov.cn/gkml/sthjbgw/qt/20...nstalled=0

[DCF]

Sunsine being recognised with a big brand value  - prove point that what they sell is specialty chemical and not commodity. Otherwise brand value will be zero!

[Young Investor]

An article on China Sunsine. For members reading.

http://ebm.cheetahmail.com/c/tag/hBbLFglB86$MfB9ph5pAABR54$g/doc.html

[Bluechipfan]

Thanks for sharing the article. Information contained therein have been consistent with hitherto available information. Hopefully they could quickly get the approval for the expansion of production lines. Quite frustrating as the hardware have been ready for so long yet the authorities are dragging their feet. The only consolation is that it is even more unlikely for competitors to expand if Sunsine has yet to obtain the approval.

[Bluechipfan]

% Price Change YTD 72.2
% Price Chg Div Adj [1Y] 99.3
% Price Chg Div Adj [3Y] 355.7
% Price Chg Div Adj [5Y] 728.3
% Price Chg vs 12M High -6.1
% Price Chg vs 12M Low 106.7
% Div Yld 2.0
% ROE 26.2
P/E 8.1
P/B 4.6
Source: SGX StockFacts (20 June 2018)

The statistics speak for itself. Outstanding in all aspects and what can be improved upon, in my view, is the div yield and PE ratio. The company has been and is still growing so perhaps the level of dividend yield is expected and acceptable. However, being the leader in its field and command high market shares both domestically [in China] and worldwide, the PE ratio of 8.1x is disappointing. By all account, it should be trading for at least 10x PE but perhaps the market is giving greater discount for its s-chip status. Its peers in the rubber chemical and tyre industries are trading at average of 18x PE. It's fine with me, market can take as long as it like since there are signs that it is trying to appraise the share price more appropriately, judging from the 99.3 percent price appreciation since 1 year back [and 728% since 5 years back]. Now, potential investors would have to content with the perennial dilemma/struggle of 'price has appreciated so much, will it go higher'? There is no straight answer, the performance statistics are laying bare for all to examine and analyse so we can all take action [or not] that we deem fit.

[Young Investor]

% Price Change YTD 72.2
% Price Chg Div Adj [1Y] 99.3
% Price Chg Div Adj [3Y] 355.7
% Price Chg Div Adj [5Y] 728.3
% Price Chg vs 12M High -6.1
% Price Chg vs 12M Low 106.7
% Div Yld 2.0
% ROE 26.2
P/E 8.1
P/B 4.6
Source: SGX StockFacts (20 June 2018)

The statistics speak for itself. Outstanding in all aspects and what can be improved upon, in my view, is the div yield and PE ratio. The company has been and is still growing so perhaps the level of dividend yield is expected and acceptable. However, being the leader in its field and command high market shares both domestically [in China] and worldwide, the PE ratio of 8.1x is disappointing. By all account, it should be trading for at least 10x PE but perhaps the market is giving greater discount for its s-chip status. Its peers in the rubber chemical and tyre industries are trading at average of 18x PE. It's fine with me, market can take as long as it like since there are signs that it is trying to appraise the share price more appropriately, judging from the 99.3 percent price appreciation since 1 year back [and 728% since 5 years back]. Now, potential investors would have to content with the perennial dilemma/struggle of 'price has appreciated so much, will it go higher'? There is no straight answer, the performance statistics are laying bare for all to examine and analyse so we can all take action [or not] that we deem fit.

The 4.6 times price to book is incorrect.

2017 year-end NAV per share was RMB 3.54, or 72.57 cent based on 1$ = RMB 4.8831.

1Q 18 NAV per share was RMb 3.84 or 80 cents based on 1$ = RMB 4.795.

Sunsine's price to book ratio is therefore around 2, for a share price of $1.60.