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
AEM2.6700.140
$ Alliance Mineral0.300-
AusGroup^0.051-
Avi-Tech0.470-
Best World1.5150.010
China Sunsine0.8600.010
CWG Intl0.1470.004
Dutech0.350-
Federal Int0.395-
Food Empire0.655-
Geo Energy Res0.230-
Golden Energy0.3750.005
$ GSS Energy0.1560.003
Heeton0.480-
$ ISOTeam0.3700.020
KSH0.8050.005
Lian Beng0.6150.010
$ Miyoshi0.066-
Nordic0.4050.005
Oxley0.580-
$ Rex Intl0.051-
Riverstone1.050-
Roxy-Pacific0.535-
Sunningdale Tech2.000-
Serial System0.180-
Sino Grandness0.225-
Straco0.840-
Sunpower0.6900.040
Tiong Seng0.3150.005
$ Trendlines0.145-
Uni-Asia Grp1.325-
XMH0.2550.035
Yamada Green Res0.430-
YZJ Shipbldg SGD1.3050.040
Powered by JoomlaGadgets

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 776 guests and no members online