China Sunsine Chemicals Holdings

[CityFarmer]

No, since i am not a shareholder, thus never attend any of the AGM, and talk to any management members.

As stated in the posting, it is all base on FR, AR, and online research on the industry, company and etc.

So i am OK for anyone to disregard the statement if in doubt...

Hi City Farmer

What makes u think that this company is still decent?
have u interacted with the chairman before?
tks.

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 report for that year by RMB 10.96 m. There was no attempt to dress up the accounts.

Base on my limited accounting knowledge, i still hold-on to my view that this is a decent company with a trust-able management, at least up to last financial report

[Stockerman]

Can we safely say that if the companies deal mainly with big international clients it should be a "safer" S-chip?

[Stockerman]

Hi Forumers

Does anyone know where to obtain the market price index for Aniline?

China Sunsine uses Aniline as one of its principal raw materials, and is exposed to market price risk.

Tks.

[CY09]

Can we safely say that if the companies deal mainly with big international clients it should be a "safer" S-chip?

Hi stockerman, a company who deals with major big names as clients will have stability and a stronger biz model. Hence they can be seen as safer in terms of one component of risk factor. But I do agree that we cant safely say they are safe, since they could be going into other risky side ventures like shadow banking etc ( think yangzijiang)

[CityFarmer]

Can we safely say that if the companies deal mainly with big international clients it should be a "safer" S-chip?

Hi stockerman, a company who deals with major big names as clients will have stability and a stronger biz model. Hence they can be seen as safer in terms of one component of risk factor. But I do agree that we cant safely say they are safe, since they could be going into other risky side ventures like shadow banking etc ( think yangzijiang)

with a unique banking environment in China, where little support of bank on SMEs, "shadow banking" seems a way out for SME, a win-win solution if risk been well managed.

(vested in YZJ, not vested in China Sunsine)

[Stockerman]

Someone makened more than 800 lots at one go at 23.5 cents...something brewing?
or is this just some manipulation b/w insiders to create interest?

[CityFarmer]

Someone makened more than 800 lots at one go at 23.5 cents...something brewing?
or is this just some manipulation b/w insiders to create interest?

Likely company share-buy-back? The last round was around 1 year ago.

(not vested)

[Stockerman]

thought company has said it would not be buying back shares in order to conserve cashflow...

Someone makened more than 800 lots at one go at 23.5 cents...something brewing?
or is this just some manipulation b/w insiders to create interest?

Likely company share-buy-back? The last round was around 1 year ago.

(not vested)

[CityFarmer]

Briefly reviewed the 1Q result

Summary:
- Revenue increased 19% to RMB384.0 million backed by strong sales volume.
- GPM reduced from 17.8% to 14.6%, reasons quoted were increased raw material cost and reduced ASP
- NP reduced by -26%, mainly due to expenses of expansion in capacities and infrastructure.
- OCF before WC remains healthy at 35.6 mil RMB, about the same YoY.

IMO, ASP reduced only 1%, the strategy of capturing market share with reduced price seems ending, which is a good news to shareholder.

Let's end the summary with chairman message quoted below

"In the first quarter of 2013, the overall operating environment had not improved despite the better economic data coming out of China for 4Q2012. We are still facing higher operating and raw materials cost pressure but the Group managed to achieve positive operating results, thanks to its economies of scale and marketing efforts. The auto sales market in China is still growing. In the first quarter, 5.4 million vehicles had been sold, up 13.2% year-on-year. Given the continued growth in the China auto market, we remain positive on the outlook for the Group for this year.”

[portuser]

The company could not have been the buying party yesterday as it has not renewed its share buyback mandate.
The company is now being burdened by the high fixed cost of producing 6PPD, whose designed capacity is 15k tonnes a year. The current utilisation is very low, around 1k tonne each quarter.
The company has also built the capacity to produce enough 4ADPA (the intermediary for manufacture of 6PPD) to support ultimate production of 30k tonnes of 6PPD.
Things should improve when sales of 6PPD pick up after more tyre manufacturers accredit Sunsine's product. Sunsine's track record of technical competence in rubber accelerators and insoluble sulphur may provide some comfort to investors who are willing to wait out.