China Sunsine Chemicals

Saudi Arabia adopting the same biz strategy practised by China Sunsine in the past?


Saudi isn’t leading the charge for OPEC to cut production and raise prices. Dr Doom economist Nouriel Roubini explained it:

"Their behavior is like a typical oligopoly using predatory pricing. If you keep prices low for long enough, you get rid of those who are high marginal-cost producers, whether it’s shale gas and oil, or Russia, or Venezuela, you name it.

Secondly, you commit to your fixed investment schedule and continue to increase capacity. That’s going to lead to everybody else to underinvest in increasing capacity. In the short term, you have lower oil prices, but in the medium term you’ve flushed out your competition … you take the pain for the next 12 to 18 months, but the result is higher prices and market share down the road."

Share price had a good leg up today + 3 cents => 45 cents. The profit for FY2014 should be robust, translating into a PE of 4-5X.

Haha.... you jokers!

yeng wrote:

potatolover wrote: My grandma said the next support level at 40 cents is coming.

Hope your grandma is zhun. I want to buy at 40 cents too.

grandfather and grandma aside, analyst fr Amfraser says:

"Given its unprecedentedly strong prospects, we argue that Sunsine should at the very least be trading at the top of its historical trading P/E of 6-7x. We therefore ascribe a target price of S$0.69 to Sunsine, which is pegged at 7x FY15F P/E."


www.nextinsight.net/index.php/story-arch...o-rise-says-amfraser

Bluechipfan @ valuebuddies.com said:

"In a nutshell, the earning is on track and EPS of SGD 10 cents for the just over FY is expected. The company is well prepared for the stricter environmental law which already come into effect, heat plant completed as scheduled, production capacity expanded as planned, loans repaid on time etc etc. Cant wait to see the balance sheet for the just ended FY! I hope to see great deduction in debt, this coupled with sustainable EPS is going to be key for me to decide whether to increase my holding or not. Of course, a slight increase in the dividend will be nice."

The article today ( www.nextinsight.net/index.php/story-arch...s-excluding-tbbs-fel ) estimates that net profit in 4Q2014 was RMb79 m or so.

The growth was 351% year-on-year as the profit for 4Q2013 was only RMb17.5 m.

If this estimate is any accurate, we should expect the company to issue a Positive Alert.

In the past 2 quarters, the company did announce a Positive Alert. The advance period varied widely. For 2Q Positive Alert, it was just about 1 week in advance. For 3Q, it was about 3 weeks.

Let's see if the next Positive Alert is coming out soon. The FY2014 results will be announced at the end of Feb, if the company keeps to the same schedule as for FY2013.

Trend in pricing + profitability is in favour of producers of rubber accelerators. Benefited Sunsine probably in a big way last quarter. For the first time, Sunsine sold so much accelerators and total group sales probably exceeded RMB2 billion in 2014.

Sunsine has been making inroads in China & export markets, which was once believed impossible for a company taken over by an ex-chemistry teacher.

I hope the dividend payout will be much better than 1-cent. Gotta make hay while the sun shines. Rubber accelerators must be a commodity if the prices of one company can be taken as pretty comparable to another company's (Sunsine, in the case of the NextInsight article).