SINGAPORE (June 5): NRA Capital is “overweight” on China Sunsine Chemical with a fair value of $1.245 as it likes the stock’s attractive valuation and potential for higher dividends.

Demand for rubber chemicals from China Sunsine is also expected to increase in tandem with higher demand of vehicles in China.

“We estimate that Sunsine has to add 10,000 tonnes per annum (tpa) of capacity every two years to maintain its market share for accelerators, implying positive long term growth prospects,” says Liu Jin Shu of NRA Capital in a Monday report.

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