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China Sunsine

China sunsine

Letz hope a dragon fly doji in the pipeline for a reversal

Cheers

Tks for sharing

Letz hope a rebound in the pipeline

Cheers

Aizai8 ( Date: 10-Aug-2018 11:17) Posted:

As usual, Sunsine' s chairman message in the recent results announcement is cautionary.

Sunsine' s position as the world' s leading rubber accelerator producer is not affected at all. With its green manufacturing practices, qualtiy assurance and R& D efforts, it is in good stead to capture more market share.

See Kim Eng' s more balanced report below.

Extracted :

CSSC remains a constituent of the Market Insight Growth portfolio.

AEM Holdings and Bestworld had been removed from KE Growth Porffolio.

08/08/2018

Maybank KE Retail Research

Stock price of China Sunsine (CSSC) tumbled as much as 13% on 8 Aug despite reporting stellar 2Q18 results with net profit soaring to Rmb239.7m (+222%). This lifted 1H18 earnings to Rmb389.2m (+196%), smashing past estimates.

For the quarter, revenue jumped 34% to Rmb880.6m on the back of an increase in average selling price (ASP) of its accelerators, as well as higher sales volume of 37,567 tons (+9% y/y, +2.1% q/q), particularly in insoluble sulfur and anti-oxidants.

The increase in ASP was mainly due to the short supply situation in China following frequent environmental inspections since 2017, which have disrupted production of many chemical producers and led to a supply shortage. This is most pronounced for the price of rubber accelerators, which surged to Rmb23,334/ton (+23.4% y/y, +0.7% q/q).

Sales volume growth came from the increased demand across domestic and internal markets as some tyre makers placed more orders after recognising the group' s ability to provide stable quality supply.

Consequently, gross margin expanded 8.2ppt to 36.7% (1Q18: 34.9%).

Bottom line was further bolstered by a FX gain of Rmb18.7m (2Q17: Rmb5.7m loss) and a tax credit of Rmb24.9m arising from concessionary tax granted to its Shandong subsidiary for becoming a hi-tech enterprise.

Operating cash flow swelled to Rmb144.1m (2Q17: Rmb48.8m) despite a jump in trade and other receivables. Balance sheet continues to remain solid, with cash hoard of Rmb566.4m (1Q18: Rmb508.7m), representing 0.23¢ /share.

Plans to increase its annual capacity to 172,000 tonnes (+13%) are still pending approval from government authorities. This comprises a 10,000 ton TBBS (rubber accelerator) production line and a 10,000-ton insoluble sulfur line. A key risk lies in the execution of the planned production capacity expansion, which has been deferred since 2H17.

On that, management had shared that authorities in Shandong are more stringent, and the delay in approval is not company specific.

Meanwhile, the expansion of Guangshun heating plant has completed and is currently undergoing grid integration.

The latest share sell-down was precipated by the management' s more cautious outlook that rubber chemical prices will normalise normalising once eco-compliant producers return to the market, while the slowing China' s economy and US tariffs would dampen the demand for tyres, and in turn, its products.

Additionally, the rubber accelerator manufacturer did not declare any interim DPS this quarter, as compared to a special DPS of 0.5¢ Last year in celebration of its 10-year anniversary since listing.

That said, the impending decline in rubber chemicals is likely to be offset by the plunge in cost of raw material aniline, thus sustaining its healthy gross margins.

The group remains positive of its performance in the next 12 months.

We believe that the shares are grossly oversold as CSSC is trading at an undemanding 5.6x forward P/E, versus rival Yanggu Huatai' s 12.6x.

The street appears mixed on the counter with 1 Buy and 1 Hold and an average TP of $1.69.

CSSC remains a constituent of the Market Insight Growth portfolio.

As usual, Sunsine' s chairman message in the recent results announcement is cautionary.

Sunsine' s position as the world' s leading rubber accelerator producer is not affected at all. With its green manufacturing practices, qualtiy assurance and R& D efforts, it is in good stead to capture more market share.

See Kim Eng' s more balanced report below.

Extracted :

CSSC remains a constituent of the Market Insight Growth portfolio.

AEM Holdings and Bestworld had been removed from KE Growth Porffolio.

08/08/2018

Maybank KE Retail Research

Stock price of China Sunsine (CSSC) tumbled as much as 13% on 8 Aug despite reporting stellar 2Q18 results with net profit soaring to Rmb239.7m (+222%). This lifted 1H18 earnings to Rmb389.2m (+196%), smashing past estimates.

For the quarter, revenue jumped 34% to Rmb880.6m on the back of an increase in average selling price (ASP) of its accelerators, as well as higher sales volume of 37,567 tons (+9% y/y, +2.1% q/q), particularly in insoluble sulfur and anti-oxidants.

The increase in ASP was mainly due to the short supply situation in China following frequent environmental inspections since 2017, which have disrupted production of many chemical producers and led to a supply shortage. This is most pronounced for the price of rubber accelerators, which surged to Rmb23,334/ton (+23.4% y/y, +0.7% q/q).

Sales volume growth came from the increased demand across domestic and internal markets as some tyre makers placed more orders after recognising the group' s ability to provide stable quality supply.

Consequently, gross margin expanded 8.2ppt to 36.7% (1Q18: 34.9%).

Bottom line was further bolstered by a FX gain of Rmb18.7m (2Q17: Rmb5.7m loss) and a tax credit of Rmb24.9m arising from concessionary tax granted to its Shandong subsidiary for becoming a hi-tech enterprise.

Operating cash flow swelled to Rmb144.1m (2Q17: Rmb48.8m) despite a jump in trade and other receivables. Balance sheet continues to remain solid, with cash hoard of Rmb566.4m (1Q18: Rmb508.7m), representing 0.23¢ /share.

Plans to increase its annual capacity to 172,000 tonnes (+13%) are still pending approval from government authorities. This comprises a 10,000 ton TBBS (rubber accelerator) production line and a 10,000-ton insoluble sulfur line. A key risk lies in the execution of the planned production capacity expansion, which has been deferred since 2H17.

On that, management had shared that authorities in Shandong are more stringent, and the delay in approval is not company specific.

Meanwhile, the expansion of Guangshun heating plant has completed and is currently undergoing grid integration.

The latest share sell-down was precipated by the management' s more cautious outlook that rubber chemical prices will normalise normalising once eco-compliant producers return to the market, while the slowing China' s economy and US tariffs would dampen the demand for tyres, and in turn, its products.

Additionally, the rubber accelerator manufacturer did not declare any interim DPS this quarter, as compared to a special DPS of 0.5¢ Last year in celebration of its 10-year anniversary since listing.

That said, the impending decline in rubber chemicals is likely to be offset by the plunge in cost of raw material aniline, thus sustaining its healthy gross margins.

The group remains positive of its performance in the next 12 months.

We believe that the shares are grossly oversold as CSSC is trading at an undemanding 5.6x forward P/E, versus rival Yanggu Huatai' s 12.6x.

The street appears mixed on the counter with 1 Buy and 1 Hold and an average TP of $1.69.

CSSC remains a constituent of the Market Insight Growth portfolio.

Stop loss reached, I' m out...
What a waste, I thought this one had such good potential.
Another huge disappointment.

i juz spoken to the IR.....

The share buy bk is in the pipeline........they wont disclose when and what price.

but after dropping 20%, and the gap 1.15 being covered in Feb, this one shld look for rebound

Cheers

Sgvale ( Date: 10-Aug-2018 10:43) Posted:

117 pple also throw. Co got share buy back today?

bro chill lar. If u buy for short term becoz of positive profit alert, i am afraid u will be disappointed

117 pple also throw. Co got share buy back today?

Soon below $1. $0.60 Like AEM. Cos CIMB said No good

bump

ash902 ( Date: 10-Aug-2018 08:08) Posted:

When the forum becomes active, thats when price start to tank. imo and own observation.
Hang on for the ride and potential sell down

Yalor.

Price drop 20% these 2 days and its very oversold....

Hope some buying wl come who appreciate this undervalue stock

Cheers

Sgvale ( Date: 10-Aug-2018 10:17) Posted:

Thought today opening good.? Why Like that....

Selling Q beri strong. Heng.... sold most on Wed scare.

forget about this stock...

throw into dusbin also no ppl want to pick

I' ve written and contacted the IR(spoken) and as follows:

1) The declining ASP is true fact and it' s been their practise on the report to reflect it' s current status . CIMB reported that but mgmt aren' t sure why they adjusted the PE lower.. The normalization of ASP wl occcur after spike up for few qtrs

2) Approval for their new prodn plant is anticipated this qtr.

3) They do not hv any policy for special/interium dividend payout except last year is their 10 year anniversary. But culd expect higher dividend given their better result earning.

4) Co wl look into share buybk to enhane shareholders value.

Cheers

4)

The more they trying to depress it, the spring up wl be even stronger.

Juz wait and see.

Cheers

Sgvale ( Date: 10-Aug-2018 09:25) Posted:

--- Post Removed by User ---

Recd KGI top shorted stocks on Aug 8 and namely China sunsine was one of them.

Total 747800 share were shorted avg 1.33

Letz see whether any shortcovering for all these shorts when price go abv 1.33

Cheers

Forming a harami at the bottom.......indicators bottomish.

Once they marched past 1.31, next wl be 1.34/35

Cheers

Sgvale ( Date: 10-Aug-2018 09:01) Posted:

--- Post Removed by User ---

10mil fake buy Q at 0.01

Tks for the concern.

There are sellers, likewise there are buyers whom wl appreciate this undervalue stock at current price

I' m opined for an upward biased .

Letz see how things pan out.

Cheers

When the forum becomes active, thats when price start to tank. imo and own observation.
Hang on for the ride and potential sell down

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China sunsine