specuvestor Wrote:IMHO like Curiousparty herself said, people should be able to see the positive and negative sides in a thread, which i agree But i dont see what value she add with her current postings with no substantiation and irrelevant comparison
It is undeniable that share price of sunsine has been volatile. It has already dropped 30% from its peak . Imagine people who bought right at the peak , 30% of the value is gone in less than one month. There is always trade off . High risk high return (imho)
decidedly below 40 cents now. Next level should be 30 cents.
Has the company indicated that they would do share buyback to shore up support in event of sell off way below the intrinsic value?
Company did not seem perturbed by the sell off from above 50 cents to current below 40 cents. Did someone ask the company the reason for not resuming the share buyback program? Is the share price still deemed to be too high for buyback?
I believe the company is using their cash to reduce their loans. Does anyone know what is the overall loan amount now? Thanks.
(Vested)
(12-12-2014, 05:35 PM)Young Investor Wrote: [ -> ]I believe the company is using their cash to reduce their loans. Does anyone know what is the overall loan amount now? Thanks.
(Vested)
I have been monitoring their bank loans. 2 loans amounted to RMB 50 millions due on 1.12.14 were not renewed and no new loan taken. This is based on the fact that they were no rule 704 announcement. Another loan of 18.9 millions is due on 24.12.14 and I believe they should be able to pay it off too without new loan. If so, their outstanding loan should be around 280 millions, down from 350 millions as of 3Q14, if I remember correctly. This, coupled with minimum capex in near future (as they had just completed recently the expansion and the heat plant), as well as increased in market share (materialise or not have to wait and see), augur well for the company. To be honest today was thinking to buy more but decided against it as Mr Market could be even more generous for some reasons from the way I see it. A bit surprised price closed up.
Vested.
Bluechipfan
The outstanding loan amount should be around RMB 258m if the loan maturing on 24 Dec 14 is paid off:
..........................................................RMB m
Outstanding loans as at 30 Sep 14……......366.9
Loan matured on 10 Oct 14…....................20
Loan matured on 24 Oct 14......................20
Loans matured on 1 Dec 14………................50
Loan maturing on 24 Dec 14…...................18.9
You have left out the two loans that matured in Oct 2014.
Outstanding amount will be down to RMB 178m if loans amounting to RMB 80m are not renewed in Mar 2015.
(12-12-2014, 08:39 PM)portuser Wrote: [ -> ]Bluechipfan
The outstanding loan amount should be around RMB 258m if the loan maturing on 24 Dec 14 is paid off:
..........................................................RMB m
Outstanding loans as at 30 Sep 14……......366.9
Loan matured on 10 Oct 14…....................20
Loan matured on 24 Oct 14......................20
Loans matured on 1 Dec 14………................50
Loan maturing on 24 Dec 14…...................18.9
You have left out the two loans that matured in Oct 2014.
Outstanding amount will be down to RMB 178m if loans amounting to RMB 80m are not renewed in Mar 2015.
Thanks. It was off the top of my head. Glad to be corrected!
I believe Sunsine has also paid off the 18.9 m loan that has matured on 24 Dec 14.
Explored a bit on Sunsine's competitors in China. 天津科迈、天津一化化工, 山东阳谷华泰 are the main ones. As well reported in various Chinese web sites, the first 2 have reduced production greatly (or stop completely?) due to increase environmental control from China government. 山东阳谷华泰, like Sunsine, benefited from the resultant shortage with increase in production as well as in ASP. I will expect many smaller producers have been affected with the environmental control as well.
山东阳谷华泰, is trading in China (
http://finance.sina.com.cn/realstock/com...1/nc.shtml), which is a read hot market now. Its EPS is estimated at 25-30 cents RMB, but is trading at 9.19rmb now. According to Sublime China Information Group Co., Ltd., 山东阳谷华泰 is now the second largest producer of accelerator, and it is also the number one producer of 防焦剂CTP.
Comparatively, Sunsine price is very attractive, if all the reported numbers are real.
Actually didn't feel like posting anything because there is nothing new, at least to me.
In a nutshell, the earning is on track and EPS of SGD 10 cents for the just over FY is expected. The company is well prepared for the stricter environmental law which already come into effect, heat plant completed as scheduled, production capacity expanded as planned, loans repaid on time etc etc. Cant wait to see the balance sheet for the just ended FY! I hope to see great deduction in debt, this coupled with sustainable EPS is going to be key for me to decide whether to increase my holding or not. Of course, a slight increase in the dividend will be nice.
New loan RMB30mill taken with Laishang Bank on 23 January 2015 for purposes of its working capital requirements.
This is a bit of a surprise. I thought they are more keen on paring down the outstanding loans.