Adding on to the above, serious questions will have to be asked about dividend yield ratios. China Sunsine is paying a paltry sub-3% dividend yield right now..
Sunsine's 1QFY2017 results statement: "ASP increased by 17% from RMB 14,765 per ton in 1Q2016 to RMB 17,300 per ton in 1Q2017. The increase in ASP was mainly due to the Group being able to pass on the increase in raw material costs to its customers. On a quarter to quarter comparison, the ASPwas RMB 16,000 per ton in 4Q2016."
2. Capacity expansion is already happening in 2017, don't have to wait till 2018.
Sunsine's 1QFY2017 results statement: "Currently, the machineries under the new Phase 1 10,000-ton TBBS production line are still undergoing testing, and the trial-run and commercial production are scheduled to commence in the 2nd half of FY2017.
The new 10,000-ton Insoluble Sulphur production line in Ding Tao factory and the expansion of Guangshun Heating Plant are on schedule, and are expected to complete by 3Q2017 and end of 2017, respectively."
I am not incorrect but rather the basis on which we look at things is different.
1. If you had dug further, ASP fot 1Q16 versus 1Q15 and 4Q14 was higher too. BUT on a yoy basis ASP dropped.
2. Capacity described above is on a full year basis. Once again if you were to take that capacity and adjust it according to the quarterly basis you see a number that is not as meaningful.
I need to clarify this point, I'm not shorting. What I'm saying is that you're buying into 2018 results not 2017. Many things are better at this point in time. Case in point is AEM.
