SunVic Chemical (A7S.SG) gaps up at opening, last +2.2% at $0.69 in active trade, on big improvement in China-based chemical maker’s 3Q10 results. Net profit at CNY193.3 million vs CNY6.1 million loss year earlier, CNY103.5 million profit in 2Q10 on higher selling prices, volume. 

Gross margin at 30.0% vs 5.2% in 3Q09, 26.2% in 2Q10, while revenue more than doubled on year, +19.6% on quarter, at CNY981.4 million. “Truth be told, we were awed by both top- and bottom- line figures,” says Phillip Securities analyst Lee Kok Joo, who has Buy call, $0.95 target; “we remain optimistic on the outlook of SunVic given that there is earnings visibility into FY12.” 

 

Stock one of best performers among S-chips in past weeks, +75.3% since beginning 4Q10 vs FTSE ST China Index +8.5% over same period. Orderbook quotes suggest minimal upside beyond $0.70.