China Sunsine Chemical Holdings

Global Portfolio outperforms MSCI index and has positive absolute returns

SINGAPORE (May 20): The tide appears to have shifted once again for global stock markets. After fanning hopes of an imminent breakthrough on a trade deal for months, US President Donald Trump escalated tensions with a trademark tweet a couple of weekends ago.

China Sunsine's 1Q earnings fall 26% to $22.3 mil in tandem with lower raw material prices

SINGAPORE (April 29): China Sunsine Chemical Holdings announced a 26% y-o-y decrease in 1Q earnings to RMB110.2 million ($22.3 million) from RMB149.5 million a year ago, due to lower revenue as a result of reduced average selling price (ASP) for rubber chemicals.

Group revenue for the quarter slid 20% to RMB686.6 million from RMB856.9 million in 1Q18, as ASP slid 24% over 1Q to RMB17,637 per ton from RMB23,168 previously.

The lower ASP was mainly attributed to lower raw material prices.

Why we sell the stocks even if we still like the companies

SINGAPORE (Apr 22): Let me start by wishing our Christian readers a blessed Easter.

This week, I would like to take a bit of space to explain why we recently disposed of several of our investments, some at a loss. We make big mistakes too, and it highlights the limitations of investing based on data analytics.

We decided to cut our losses in DIP Corp, a stock that we have held since the inception of this portfolio. It operates the largest web portal and mobile application for part-time and temporary jobs in Japan.

China Sunsine scaling up manufacturing to ride soaring tyre demand: Maybank

SINGAPORE (Apr 16): Maybank Kim Eng says China Sunsine is scaling up manufacturing capacities of its rubber chemicals plants in China to ride on global soaring tyre demand.

China Sunsine has obtained government approval for the trial run of its new 30k tonne capacity production line to manufacture TBBS rubber chemical and a 10k tonne insoluble sulphur (IS) line at its current Shanxian site.

China Sunsine to acquire land in Shandong for $505 mil investment project

SINGAPORE (Mar 13): China Sunsine Chemical Holdings says its subsidiary, Shandong Sunsine, has agreed to invest up to RMB2.5 billion ($505 million) on a piece of land in Shanxian county, Shandong, to further expand its capacities in rubber chemical products.

Out of the total investment sum, Shandong Sunsine intends to commit RMB1.5 billion to property, plant and equipment.

Under its agreement with Shanxian’s government, Shandong Sunsine will pay RMB20,000 per mu as a deposit for the land, which spans approximately 800 mu or some 534,000 sq m.

China Sunsine posts 18% decline in 4Q earnings to $21.9 mil on lower revenue

SINGAPORE (Feb 28): China Sunsine Chemical Holdings has announced earnings of RMB 108.6 million ($21.9 million) for the 4Q18 ended December, 18% lower than RMB 132.0 million a year ago.

This brings full-year earnings to RMB 641.3 million for FY18, 88% higher than RMB 341.3 million a year ago.

4Q18 revenue fell 12% to RMB 770.1 million, from RMB 873.3 million a year ago, despite a 3% growth in sales volume during the quarter.

The decline was mainly due to lower overall ASP, which dropped by 15% to RMB 19,110 per ton in 4Q18, from RMB 22,384 per ton a year ago.

Investing in late-cycle earnings growth

SINGAPORE (Feb 25): Positive news flow on the ongoing US-China trade talks continued to buoy sentiment for global stocks over the past week. Following reported progress after days of negotiations in Beijing, further discussions have resumed in the US. Clearly, markets have now priced in some sort of deal to avert another tariff hike or, at the very least, an extension to the March 1 deadline.


Of Big Tech and S-curves

SINGAPORE (Nov 19): US stocks rebounded higher at the start of the month, on the heels of the steep selloff in October, where the Dow Jones Industrial Average and Standard & Poor’s 500 index fell 5.1% and 6.9% respectively. The reprieve was short-lived, however, as stocks succumbed to another wave of selling this week.  


China Sunsine posts 85% rise in 3Q earnings to $28.6 mil on higher revenue, profit margin

SINGAPORE (Nov 6): Specialty rubber chemicals producer and rubber accelerators supplier China Sunsine Chemical Holdings saw its earnings jump 85% to RMB 143.4 million ($28.6 million) for the 3Q18 ended September, from RMB 77.6 million a year ago.

The increase was on the back of higher revenue and gross profit margin.

3Q18 revenue rose 22% to RMB 775.6 million, from RMB 634.4 million a year ago, due to an increase in both sales volume and overall average selling price (ASP).

Plunge in raw material prices good news for China Sunsine if ASPs can be maintained

Monday (July 2): A plunge in the prices of raw material could turn in favour of China Sunsine if the producer of rubber chemicals manages to maintain average selling prices (ASPs) for its rubber accelerators, resulting in better gross margins.

See: Why these stocks are in our portfolio

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