SINGAPORE (Nov 21): Despite its share price having doubled year to date, China Sunsine Chemical appears deeply undervalued at eight times FY17 earnings versus 17 times for industry peers and 13.5 times for tyre makers, says Maybank Kim Eng.

In Monday’s unrated report for retail investor, analyst Simeon Ang says China Sunsine has risen to become one of the biggest producers of rubber additives, rubber accelerators with 18% global market share. It is also top in China when it comes to the supply of insoluble sulphur to top-tier tyre makers such as Bridgestone, Yokohama and Michelin.

Despite a temporary industry-wide production shutdown in 3Q17, China Sunsine’s 9M17 earnings jumped 35% to RMB209.3 million ($42.8 million), supported by 25.1% higher average selling prices and steady sales volumes.

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