Notes from Maybank Kim Eng Securities Retail Research Team: 

CHINA SUNSINE: Poised to benefit from continued strength in China passenger car sales.

Stock price 

79.5 c

52-week range

38.2 – 83.5 c

PE (ttm)

7.4

Market cap

S$391 m

Shares outstanding

492 million

Dividend
yield (ttm)

1.26%

Year-to-date return

60%

Source: Bloomberg

- According to the China Passenger Car Association (CPCA), retail sales totalled 1.78m vehicles in Jun, a 4.6% rise from a year ago. This bodes well for China Sunsine, which makes chemicals that are used to cure rubber in the production of vehicle tyres. 

- According to industry thinktank, ReportLinker, new passenger car sales in China should reach 29.7m by 2020, maintaining an annualised CAGR of 7.1% between 2017 and 2020. 

celebrate7.17China Sunsine CEO Liu Jing Fu (standing, left) and executive chairman Xu Cheng Qiu (right) celebrate the company's 40th anniversary this month. Photo: Company- China Sunsine currently holds a market leading position both in China and the world with 31% and 18% market shares respectively, as of FY16. 

- The group is taking advantage of this growth by expanding its annual capacity by 13% to 172,000 tonnes by the end of FY17. 

- Assuming China Sunsine is able to maintain its 10-year earnings growth trend of 12.6% (1Q17: +70%), we could see the stock rerate to $1.10 based on a conservative 10x trailing P/E. 

- China Sunsine has been a strong performer in Market Insight's Growth basket, appreciating 15% since inception at $0.70. In view of the continued earnings growth trajectory, we believe that the counter still has some runway for share price appreciation.


Share Prices

Counter NameLastChange
AEM Holdings4.540-
Avi-Tech Electronics0.3000.005
Broadway Ind0.146-0.002
China Sunsine0.490-0.005
DISA0.003-
Food Empire0.540-
Fortress Minerals0.3500.010
Geo Energy Res0.4000.005
Golden Energy0.5050.005
GSS Energy0.053-
InnoTek0.475-0.005
ISDN Holdings0.480-0.005
ISOTeam0.106-
IX Biopharma0.1650.001
Jiutian Chemical0.092-
KSH Holdings0.345-
Leader Env0.059-
Medtecs Intl0.176-0.001
Meta Health0.033-0.001
Moya Asia0.0620.001
Nordic Group0.420-0.005
Oxley Holdings0.168-0.006
REX International0.230-
Riverstone0.700-0.005
Sinostar PEC0.225-
Southern Alliance Mining0.670-
Straco Corp.0.380-
Sunpower Group0.3900.005
The Trendlines0.095-0.001
Totm Technologies0.135-
UG Healthcare0.2150.005
Uni-Asia Group1.100-0.010
Wilmar Intl4.1700.010
Yangzijiang Shipbldg0.9500.010

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 638 guests and no members online