Sunsine had the foresight of devising cleaner method of producing MBT and it is now capable of producing 45,000 tonnes of MBT a year, of which 39,000 tonnes are used to make CBS, TBBS and MTBS.
How could Sunsine have thrived earlier when it adopted costlier and clean production method, when many others polluted without paying for the cost; surely Sunsine was at a cost dsadvantage then?
(27-06-2014, 09:51 AM)simpleman Wrote: [ -> ]Sunsine had the foresight of devising cleaner method of producing MBT and it is now capable of producing 45,000 tonnes of MBT a year, of which 39,000 tonnes are used to make CBS, TBBS and MTBS.
How could Sunsine have thrived earlier when it adopted costlier and clean production method, when many others polluted without paying for the cost; surely Sunsine was at a cost dsadvantage then?
Sunsine was fortunate in being accredited by Bridgestone, the world's largest tyre maker, early, in 2003. (Global tyre companies are stringent in supplier accreditation and they pay better prices for raw materials produced from cleaner processes.)
Sunsine had set its sight on serving global tyre companies because the bulk of world's tyre output is from them.
Accreditation by other global tyre majors followed Bridgestone's endorsement.
But the threat from other accelerator producers remained. Sunsine slashed product prices in late 2011 to gain market share. Profit plunged in 2012 as a consequence, but recovered in 2013.
Profit should be stronger this year with MBT-based products fetching higher prices following government's clampdown on MBT productions that pollute the environment.
(24-06-2014, 09:16 PM)CityFarmer Wrote: [ -> ]More debt in the company, as expected. Debt facilities of RMB 270 mil, and borrowed RMB 250 mil.
(not vested)
http://infopub.sgx.com/FileOpen/CS_Discl...eID=302450
The latest update of company debt, with new debt facilities with the restrictions. The latest debt amounted to 298.9 mil RMB.
(not vested)
-----------
The Board of Directors (the “Board”) of the Company wishes to announce that pursuant to Rule 704(31) of
the Listing Manual of the Singapore Exchange Securities Trading Limited (“SGX-ST”), its wholly-owned
subsidiary, Shandong Sunsine Chemical Co., Ltd (“Subsidiary”), has, on 25 June 2014 and 26 June 2014,
entered into two new loan agreements of RMB 18.9 million and RMB 30 million with Industrial and
Commercial Bank of China (“ICBC”) and China Construction Bank Corporation (“CCB”), respectively (each
a “New Loan Agreement” and collectively, the “New Loan Agreements”), for purposes of its working
capital requirements.
The New Loan Agreements contain the following clauses which place restrictions on a change of control of
the Company (“Conditions”):
http://infopub.sgx.com/FileOpen/CS_Discl...eID=303082
[quote='Curiousparty' pid='87327' dateline='1403695215']
Could we make a good preliminary estimate of how much better would sunsine Q2's result turn out to be?
30% more than last year?
Curiosparty
You have suggested that Sunsine's 2Q profit is 30% higher than last year.
2Q 2013 profit was RMB 20.5m, and your profit estimate is RMB 27m for 2Q this year.
This seems low when the profit of seasonally weaker 1Q was already RMB 22.8m.
Are there significant costs that may be incurred in 2Q?
There was an article on NextInsight on the company, which might be interesting to some buddies here.
It is a good overview and analysis, but we should be caution when benchmarking the company with its peer in different exchange. IMO, PE benchmarking of SGX stock with SZSE stock, is meaningless, and might be misleading.
http://www.nextinsight.net/index.php/sto...e-than-100
(not vested)
just finished reading that article, sounds positive.
I think should be able to compre with its sz peer..
I think we just let the company's actual results say for itself. this is really one of those RARE S chips that had not missed a single dividend payment and had not asked for more money (e.g. right issues) from shareholders since IPO. If actual results really turn out as mentioned in the article, its full results should be at least 50 to 100% better than last FY, and the trend is set to continue as the central govt went on clamping down the polluters with great resolute, as what they had done with corruption (albeit a bit slow on this front)...
(05-07-2014, 08:01 AM)Curiousparty Wrote: [ -> ]I think we just let the company's actual results say for itself. this is really one of those RARE S chips that had not missed a single dividend payment and had not asked for more money (e.g. right issues) from shareholders since IPO. If actual results really turn out as mentioned in the article, its full results should be at least 50 to 100% better than last FY, and the trend is set to continue as the central govt went on clamping down the polluters with great resolute, as what they had done with corruption (albeit a bit slow on this front)...
Curiosparty
Since Nextinsight's RMB 43m 2Q profit is much higher thn your estimated 30% rise, does Curiousparty agree with the math used by Nextinsight.
Simpleman
In his statement in 2008 annual report, Sunsine chairman said the following:
“On the environmental front, we continue to invest in upgrading our waste-gas recycling and waste-water treatment facilities. We believe that China will tighten regulations and enforcement activities toward manufacturing plants that may cause pollution to the environment. Firms that do not invest in this area might not be able to keep up and will be adversely affected in their production.”
In response to a question, Sunsine's then CFO responded as follows as reported by a Nextinsight article in 2009:
Q You said you will spend RMB 20 million on waste water treatment. That's expensive as it costs only around RMB 10 million to build a plant. How much do you expect to put aside regularly to meet international eco-friendly standards?
Mr Koh: That’s a good one. Over the last few years, we have invested over RMB 100 million in waste water treatment and waste gas treatment. The RMB 20 million is for an upgrade of our plant in Facility 2. This is our competitive advantage over the small players in China who may be indifferent to regulations and risk being shut down by the authorities. We instead comply 100% with PRC environmental regulations. Our clients do come to our plants and do inspections.
http://www.nextinsight.net/index.php/sto...m-cash-isq
With hindsight, Sunsine's strategy of investing in clean production technology is the right one and should now stand to benefit from the government's action against those who had previously been unwilling to invest and chose the easy way out by polluting the environment.