UOB Kay Hian analyst Clement Ho has kept  his “buy” call with a target price of 69.5 cents for China Sunsine Chemical after the company reported a "strong" set of 1HFY2021 ended June results.

In an August 23 research note, Ho highlights that China Sunsine’s 1HFY2021 of RMB265.2 million ($55.4 million), up 221.8% y-o-y, was driven by both increased sales volume and higher average selling prices (ASPs) of rubber accelerators.

“The better-than-expected ASP was due to: 1) the increase in price of aniline- the major feedstock for rubber accelerators; 2) higher production utilisation rates of Chinese tyre manufacturing companies; and 3) a shift in market dynamics to favour large rubber chemical players such as China Sunsine,” Ho says.

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