Excerpts from analyst's report
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Now a net cash company. China Sunsine turned net cash this quarter after paying down RMB 70m of debt. Despite also paying off (RMB 31.5m) higher dividends during the quarter, Sunsine’s cash balance remained at a very healthy level of RMB 223.4m, just off its high of RMB 234.2m in 1Q15.
Better positioned than competitors in the challenging industry ahead. The U.S. Department of Commerce has officially began the imposition of punitive duties on certain Chinese tire makers in July amid a slow down in Chinese automobile sales in 1H15. This adds on to the long-term problem of overcapacity in the Chinese tire-making industry. While this may have adverse effects for many rubber chemical suppliers, we think Sunsine will emerge as a key long-term beneficiary. 
Financial Controller Tong Yiping @ today's results briefing which was attended by about 16 people.
Photo by Saw Wei Jie.With already a dominant market share, further flexing of Sunsine’s muscles through price reductions should suffocate weak players that are already gasping for air in this tough industry (not forgetting tougher environmental regulations as well).
We will not be surprised if Sunsine’s already dominant market share in RAs increases even more going forward, without sacrificing too much in terms of profits.
Maintain BUY. Sunsine is trading cheaply at only 4x FY15F P/E and 0.6x FY15F P/B. Yet since IPO in 2007, Sunsine had almost tripled its earnings, doubled its book value, became the world’s largest RA producer and the largest Insoluble Sulphur producer in the China, with a still growing market share.
In view of its deep value, we maintain our BUY rating with an unchanged TP of S$0.59, still pegged at 7x FY15F EPS (historical average).
