SINGAPORE (Feb 5): China Sunsine Chemical Holdings has been one of our portfolio’s top-performing stocks, gaining 20.8% since we bought it just two weeks ago, thanks in part to a growing number of brokers who have since started covering the company.

This vindicates our top-down, bottom-up approach to finding undervalued stocks. The stock first appeared on our radar when we performed our routine filtering, using the Fundamental and Valuation scores from China Sunsine has a Fundamental score of 2.8 out of 3 and Valuation score of 1.8 out of 3. We also looked closely at sales and earnings before interest, taxes, depreciation and amortisation growth over a period of time and, importantly, the quality of growth — that is, consistency — on a year-to-year basis. Please see chart, which shows where stocks are positioned relative to EV/Ebitda and Ebitda growth.

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