Does anyone have any info on the progress of accreditation of Sunsine's 6PPD by its customers?
Will Sunsine's success in accelerators be carried over into 6PPD?
tks.
looks like it is going to drop below 20 cents this morning?
bad news coming? probably the upcoming results would not be good..
With China GDP forecast coming in below par, counters like sunsine which rides on China growth story will be strongly hit...
SGX just announced the quitting of the CFO....
definitely not a good sign when Sunsine is on the verge of developing a new product...
Did he discover something bad about the company? only insiders know....
Hi
Why hasnt the production of 6PPD resulted in quantum leap in profit?
in fact, this segment is a big drag on the overall performance...
(07-08-2012, 12:57 PM)portuser Wrote: [ -> ]2Q profit would have been RMB 20.5m if not for the RMB 9.3m one-off charge relating to the trial production of 6PPD, which has high entry barriers
Even though the entry barriers of rubber accelerators are low, the company has been successful in adding new capacities and gaining market share at the expense of its rivals.
Full commercial production of 6PPD in the near future should result in a quantum leap in profit.
I held their shares once when their "profits" seemed to be very good but sold when noticed that they had all sort of impairment every quarter for many quarters.
this is one of the S-chips which have not made a loss since the start of its listing in Spore...
Perhaps the management has valid reasons for taking the impairment charges? Are these impairment charges one-off?
(17-07-2013, 11:23 PM)kopihothot Wrote: [ -> ]I held their shares once when their "profits" seemed to be very good but sold when noticed that they had all sort of impairment every quarter for many quarters.
(18-07-2013, 08:27 AM)Stockerman Wrote: [ -> ]this is one of the S-chips which have not made a loss since the start of its listing in Spore...
Perhaps the management has valid reasons for taking the impairment charges? Are these impairment charges one-off?
(17-07-2013, 11:23 PM)kopihothot Wrote: [ -> ]I held their shares once when their "profits" seemed to be very good but sold when noticed that they had all sort of impairment every quarter for many quarters.
didn't stay around to find out
......never go in depth anymore but so far, it seems that their profits level (with no impairment and 1-off expense) is not more than during the impairment-era.
The impairment incurred mainly for receivables and PPEs
Receivable impairment allowance is a good practice. As long as its actual usage is within a controllable range, it should be OK IMO.
The recent impairments on PPE, was mainly due to shifting from old plants to new ones, which is normal IMO.
(not vested)
I think we really need to ask these fundamental questions:
a. "Is there a really a REAL fundamental demand for Sunsine's 6PPD"?
b. "Why is the accreditation taking such a long time?"
If the fundamental demand is still there, then it should be fine. Who is the nearest competitor to Sunsine?
If there is no Real fundamental demand (i.e. just a few requests from its existing clients), then no point going into 6PPD production. it is the wrong strategic decision and company will eventually pay for it...
Good reason to dump and short China Sunsine?
*******
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China Orders Production Cuts in Some Industries
(BEIJING) — China‘s government has ordered companies to close factories in 19 industries where overproduction has led to price-cutting wars, affirming its determination to push ahead with a painful economic restructuring despite slowing growth.
The industry ministry issued orders late Thursday to more than 1,400 companies to cut excess capacity that has led to financial trouble for manufacturers. It also applies to producers of copper and glass and requires some companies to close outright.
Communist leaders are trying to reduce reliance on investment and trade. But a slowdown that pushed China’s economic growth to a two-decade low of 7.5 percent in the latest quarter prompted suggestions they might have to reverse course and stimulate the economy with more investment to reduce the threat of job losses and unrest.
“This detailed list shows the government is serious in its efforts to restructure the economy and is prepared to tolerate the necessary pain,” said Nomura economist Zhiwei Zhang in a report. “This reinforces our view that aggressive policy stimulus is unlikely in 2012 and that growth should trend down.”
An investment boom and government subsidies to industries such as solar panel manufacturing prompted producers to expand rapidly until supply exceeded demand. Companies have been forced to slash prices, often to below production cost.
The government’s overall measure of prices charged by producers has fallen for the past 16 months, threatening a growing number with financial ruin. A major solar panel maker, Suntech, was forced into bankruptcy this year.
Forecasters have repeatedly trimmed their growth outlook for China amid a drumbeat of data showing weakening growth in retail sales, factory output and other economic segments.
This month, the International Monetary Fund last week cut its 2013 forecast to 7.8 percent from an 8.1 percent outlook announced just three months earlier. The Fund’s chief economist, Olivier Blanchard, said China was the country at the greatest risk of a “large decrease in growth.”
Private sector forecasters say growth could dip below 7 percent in coming quarters.
The country’s top economic official, Premier Li Keqiang, was quoted Tuesday by Chinese newspapers affirming the Communist Party’s growth target of 7.5 percent this year. He said the “bottom line” for growth was 7 percent, prompting hopes among investors for at least a limited stimulus.
Also Tuesday, the Cabinet announced a tax cut for small businesses, indicating Beijing is trying to target specific parts of the economy without a costly, across-the-board stimulus.
Thursday’s order by the Ministry of Industry and Information Technology said it aims to eliminate “backward production capacity,” indicating it also is meant to improve efficiency in energy and resource use.
Other industries targeted include coke, calcium carbide, aluminum, smelting of lead and zinc, paper, alcohol, monosodium glutamate, citric acid, leather, printing and dyeing, chemical fiber and batteries.
The production glut is in part a lingering cost of the multibillion-dollar stimulus that helped China rebound quickly from the 2008 global crisis.
Beijing pumped money into the economy with a wave of spending, much of it financed by state banks, on building new subways, bridges and other public works. Higher revenues for state-owned construction companies and suppliers of steel and other building materials propped up inefficient producers and encouraged some to expand.
In the cement industry, Thursday’s order calls on companies to shut down facilities with annual production capacity of more than 92 million tons. Steel producers were ordered to eliminate 7 million tons of production capacity.