China Sunsine Chemicals Holdings

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(04-11-2014, 11:29 AM)portuser Wrote: Earlier, it was disconcerting to see Sunsine taking new loans successively, sending outstanding borrowings, in 10 months, from RMB 230m (as at 31 Dec 2013) to RMB 369m (as at 23 Sep 14).

We now know, from the two recent business updates, that higher borrowings paid, partly, the aggregate RMB 234m for three completed projects, namely steam/electricity plant (RMB 150m), 15,000-tonne 6PPD capacity (RMB 80m) and 4,000-tonne MBTS capacity (RMB 3.5m).

Current borrowings should be RMB 329m as two loans amounting to RMB 40m maturing last month were paid off without replacements.

Sunsine has stated that the 4,000-tonne MBTS project at the Weifang base was completed with a mere RMB 3.5m.

Before constructing the Weifang base, Sunsine announced in 2010 (?) that the base, ultimately housing 50,000 tonnes of accelerator capacity, would start off with only 10,000 tonnes with subsequent capacity addition dependent on demand. The initial RMB 100m capital cost back then covered infrastructure that would benefit future new capacities.

MBTS now sells for more than RMB 20,000/tonne. Revenue from 4,000 tonnes will be RMB 80m. Net margin of the RMB 80m should be higher than Sunsine’s 2Q overall net margin of 11%, as fixed costs will not be incurred for the incremental production. Even at 11%, net profit arising from selling the 4,000 tonnes of MBTS will be RMB 8.8m, more than twice the RMB 3.5m capital cost.

Weifang base now has an accelerator capacity of 24,000 tonnes. There is room for another 26,000 tonnes. If incremental capital cost continues to stay low, payoff will be big.

The same goes for the 8,000-tonne DCBS capacity under construction to be completed before year end. As Sunsine has shared, the company ceased producing DCBS earlier because the conventional process adopted then was pollutive. It is reintroducing this product after acquiring cleaner process.

DCBS therefore can fetch good price now. Even if it is just RMB 20,000/tonne, the RMB 9m capital cost is dwarfed by an estimated RMB 17.6m profit (based on 11% net margin of RMB 160m revenue).

More importantly, Sunsine’s share of global accelerator output will be close to 20%, from 17% before the addition of the 12,000 tonnes.

I don't like company to take on loan unless it is justify and clearly accounted for. In Sunsine case, in my view, I am glad they passed! Their loans based on 3Q report stand at 366m and if you read it in conjunction with their rules 704 and 728 SGX announcements, you would realise that their actual loan could be as low as 328m NOW. This is because 2 loans that matured in Oct 14 were paid off. How do we know? Because they are no new 704/728 announcement on new loan taken.

Going forward, with strong 2Q and 3Q results, plus expected on par 4Q results, coupled with reduced capex, the company should pay off more loans. They could reduce the loans by another 69m if 3 more loans that mature in Dec is paid off without replacement of new loans. Do they have to take on new loans? I'd be surprised if they do, as the company just completed several expansion projects.

The full FY14 EPS is expected to be SGD 10 cents. The NAV as of FY 3Q is already SGD 43.5 cents. If FY15 results are as good or even declined slightly, the company is still in strong position to generate high profits. What would they do with the increased cash? dividends?

Having said the above, this is s-chip. A lot of people are wary of s-chip, so am I so I will take no chances. By my reckoning, the company should not chalk up any more debt and I will be watching it closely. They are doing a great job with the receivable as they managed to obtain promissory note from banks for some of their receivable (206m?).If they can pare down debt it would be fantastic and I see increase in dividend as a result.

Another thing I noticed is that company did not paint rosy picture for future prospects. They simply pointed out in matter of fact manner what are the challenges ahead, i.e., curbing of tire import by US, softening of ASP, etc. They also pointed out they are well equip to face the challenges as the company should increase it market shares with expanded capacity.

In summary, if there is no more new loans and those loans that mature in Dec 14 are paid off, maybe it is time to buy more shares.
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Messages In This Thread
China Sunsine Chemicals Holdings - by potatolover - 23-04-2012, 09:27 AM
RE: China Sunsine Chemicals Holdings - by touzi - 23-04-2012, 10:36 PM
RE: China Sunsine Chemicals Holdings - by dydx - 10-05-2012, 08:13 PM
RE: China Sunsine Chemicals Holdings - by Nick - 10-05-2012, 11:40 PM
China Sunsine Chemicals Holdings - by godjira1 - 27-08-2012, 09:27 AM
China Sunsine Chemicals Holdings - by godjira1 - 27-08-2012, 03:42 PM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 29-08-2012, 02:29 PM
RE: China Sunsine Chemicals Holdings - by CY09 - 17-04-2013, 11:51 PM
RE: China Sunsine Chemicals Holdings - by touzi - 18-08-2013, 12:17 AM
RE: China Sunsine Chemicals Holdings - by touzi - 07-01-2014, 10:58 PM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 14-01-2014, 10:36 AM
RE: China Sunsine Chemicals Holdings - by touzi - 18-01-2014, 10:43 PM
RE: China Sunsine Chemicals Holdings - by dydx - 19-01-2014, 11:37 AM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 20-01-2014, 03:14 PM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 11-02-2014, 11:25 AM
RE: China Sunsine Chemicals Holdings - by cfa - 25-03-2014, 11:16 PM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 01-05-2014, 04:42 PM
RE: China Sunsine Chemicals Holdings - by SLC81 - 07-05-2014, 10:25 PM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 08-05-2014, 11:41 AM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 08-05-2014, 02:15 PM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 24-06-2014, 10:35 PM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 16-07-2014, 05:14 PM
RE: China Sunsine Chemicals Holdings - by pianist - 05-07-2014, 06:36 AM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 07-07-2014, 11:52 AM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 15-07-2014, 06:34 PM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 16-07-2014, 09:12 AM
RE: China Sunsine Chemicals Holdings - by GPD - 10-08-2014, 07:21 PM
RE: China Sunsine Chemicals Holdings - by xlandjy - 10-08-2014, 10:54 PM
RE: China Sunsine Chemicals Holdings - by GPD - 11-08-2014, 02:41 PM
RE: China Sunsine Chemicals Holdings - by Adagio - 12-08-2014, 08:12 AM
RE: China Sunsine Chemicals Holdings - by GPD - 12-08-2014, 10:37 PM
RE: China Sunsine Chemicals Holdings - by Adagio - 13-08-2014, 10:39 AM
RE: China Sunsine Chemicals Holdings - by Damien - 20-08-2014, 09:17 PM
RE: China Sunsine Chemicals Holdings - by Damien - 20-08-2014, 09:32 PM
RE: China Sunsine Chemicals Holdings - by GPD - 21-08-2014, 09:00 AM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 05-09-2014, 11:13 AM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 08-09-2014, 07:21 PM
RE: China Sunsine Chemicals Holdings - by sunview - 16-09-2014, 10:22 AM
RE: China Sunsine Chemicals Holdings - by Lugi71 - 16-09-2014, 11:34 AM
RE: China Sunsine Chemicals Holdings - by Adagio - 19-09-2014, 04:54 PM
RE: China Sunsine Chemicals Holdings - by sunview - 22-09-2014, 11:10 AM
RE: China Sunsine Chemicals Holdings - by sunview - 23-09-2014, 12:19 PM
RE: China Sunsine Chemicals Holdings - by Jacmar - 22-09-2014, 11:19 AM
RE: China Sunsine Chemicals Holdings - by Damien - 23-09-2014, 08:47 AM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 23-09-2014, 02:14 PM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 23-09-2014, 04:11 PM
RE: China Sunsine Chemicals Holdings - by sunview - 17-10-2014, 09:53 AM
RE: China Sunsine Chemicals Holdings - by Bluechipfan - 16-11-2014, 04:15 PM
RE: China Sunsine Chemicals Holdings - by Newman - 05-11-2014, 07:11 AM
RE: China Sunsine Chemicals Holdings - by weijian - 09-11-2014, 02:51 PM
RE: China Sunsine Chemicals Holdings - by weijian - 09-11-2014, 09:29 PM
RE: China Sunsine Chemicals Holdings - by wahkao - 14-11-2014, 09:44 PM
RE: China Sunsine Chemicals Holdings - by pianist - 15-11-2014, 09:53 AM
RE: China Sunsine Chemicals Holdings - by weii - 17-11-2014, 08:53 AM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 22-11-2014, 12:42 PM
RE: China Sunsine Chemicals Holdings - by Newman - 27-12-2014, 06:52 PM
RE: China Sunsine Chemicals Holdings - by DCF - 22-01-2015, 05:19 PM
RE: China Sunsine Chemicals Holdings - by DCF - 26-01-2015, 07:08 PM
RE: China Sunsine Chemicals Holdings - by DCF - 26-01-2015, 07:34 PM
RE: China Sunsine Chemicals Holdings - by DCF - 12-02-2015, 09:03 AM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 18-04-2015, 10:41 PM
RE: China Sunsine Chemicals Holdings - by DCF - 23-10-2015, 08:45 PM
RE: China Sunsine Chemicals Holdings - by DCF - 24-10-2015, 11:35 AM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 02-11-2015, 11:31 AM
RE: China Sunsine Chemicals Holdings - by touzi - 15-11-2015, 02:50 PM
RE: China Sunsine Chemicals Holdings - by touzi - 17-11-2015, 03:44 PM
RE: China Sunsine Chemicals Holdings - by DCF - 26-12-2015, 10:16 AM
RE: China Sunsine Chemicals Holdings - by ash902 - 06-02-2016, 02:37 PM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 29-04-2016, 09:38 AM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 29-04-2016, 12:32 PM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 29-04-2016, 05:46 PM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 30-04-2016, 02:53 PM
RE: China Sunsine Chemicals Holdings - by weijian - 27-09-2016, 08:03 AM
RE: China Sunsine Chemicals Holdings - by weijian - 27-09-2016, 02:58 PM
RE: China Sunsine Chemicals Holdings - by gongkia - 05-04-2017, 04:13 PM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 12-04-2017, 10:02 AM
RE: China Sunsine Chemicals Holdings - by YMPL - 23-04-2017, 09:04 PM
RE: China Sunsine Chemicals Holdings - by YMPL - 24-04-2017, 09:23 AM
RE: China Sunsine Chemicals Holdings - by YMPL - 24-04-2017, 11:29 AM
RE: China Sunsine Chemicals Holdings - by weijian - 24-04-2017, 02:32 PM
RE: China Sunsine Chemicals Holdings - by weijian - 24-04-2017, 06:21 PM
RE: China Sunsine Chemicals Holdings - by gongkia - 27-04-2017, 06:36 PM
RE: China Sunsine Chemicals Holdings - by cyclone - 09-05-2017, 04:51 PM
RE: China Sunsine Chemicals Holdings - by weijian - 09-05-2017, 06:41 PM
RE: China Sunsine Chemicals Holdings - by weijian - 09-05-2017, 09:37 PM
RE: China Sunsine Chemicals Holdings - by zz... - 10-05-2017, 09:45 PM
RE: China Sunsine Chemicals Holdings - by YMPL - 11-05-2017, 09:31 AM
RE: China Sunsine Chemicals Holdings - by yeokiwi - 11-05-2017, 09:49 AM
RE: China Sunsine Chemicals Holdings - by Jacmar - 11-05-2017, 09:59 AM
RE: China Sunsine Chemicals Holdings - by weijian - 11-05-2017, 11:21 AM
RE: China Sunsine Chemicals Holdings - by gongkia - 14-05-2017, 10:37 PM
RE: China Sunsine Chemicals Holdings - by gongkia - 17-05-2017, 10:47 PM
RE: China Sunsine Chemicals Holdings - by gongkia - 18-05-2017, 08:30 AM
RE: China Sunsine Chemicals Holdings - by gongkia - 21-05-2017, 10:37 AM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 29-05-2017, 07:16 AM
RE: China Sunsine Chemicals Holdings - by DCF - 30-05-2017, 09:56 AM
RE: China Sunsine Chemicals Holdings - by weijian - 30-05-2017, 08:43 PM
RE: China Sunsine Chemicals Holdings - by crubs - 30-05-2017, 05:54 PM
RE: China Sunsine Chemicals Holdings - by gongkia - 12-06-2017, 10:35 PM
RE: China Sunsine Chemicals Holdings - by gongkia - 19-06-2017, 08:43 AM
RE: China Sunsine Chemicals Holdings - by weijian - 19-06-2017, 09:23 AM
RE: China Sunsine Chemicals Holdings - by weijian - 19-06-2017, 01:16 PM
RE: China Sunsine Chemicals Holdings - by crubs - 19-06-2017, 07:06 PM
RE: China Sunsine Chemicals Holdings - by crubs - 24-06-2017, 05:47 PM
RE: China Sunsine Chemicals Holdings - by PkNanas - 29-06-2017, 09:40 AM
RE: China Sunsine Chemicals Holdings - by PkNanas - 01-07-2017, 10:34 AM
RE: China Sunsine Chemicals Holdings - by PkNanas - 06-07-2017, 05:28 PM
RE: China Sunsine Chemicals Holdings - by crubs - 01-07-2017, 05:26 PM
RE: China Sunsine Chemicals Holdings - by PkNanas - 05-07-2017, 01:17 PM
RE: China Sunsine Chemicals Holdings - by crubs - 06-07-2017, 05:44 PM
RE: China Sunsine Chemicals Holdings - by PkNanas - 06-07-2017, 05:36 PM
RE: China Sunsine Chemicals Holdings - by PkNanas - 19-07-2017, 11:42 AM
RE: China Sunsine Chemicals Holdings - by crubs - 13-07-2017, 06:54 PM
RE: China Sunsine Chemicals Holdings - by DCF - 19-07-2017, 03:53 PM
RE: China Sunsine Chemicals Holdings - by weijian - 24-07-2017, 11:55 AM
RE: China Sunsine Chemicals Holdings - by weijian - 24-07-2017, 09:14 PM
RE: China Sunsine Chemicals Holdings - by YMPL - 25-07-2017, 09:29 AM
RE: China Sunsine Chemicals Holdings - by weijian - 26-07-2017, 03:35 PM
RE: China Sunsine Chemicals Holdings - by weijian - 24-07-2017, 09:10 PM
RE: China Sunsine Chemicals Holdings - by weijian - 26-07-2017, 03:51 PM
RE: China Sunsine Chemicals Holdings - by PkNanas - 27-07-2017, 10:22 AM
RE: China Sunsine Chemicals Holdings - by weijian - 01-08-2017, 11:08 AM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 31-07-2017, 10:39 AM
RE: China Sunsine Chemicals Holdings - by weijian - 01-08-2017, 12:09 PM
RE: China Sunsine Chemicals Holdings - by weijian - 02-08-2017, 07:52 AM
RE: China Sunsine Chemicals Holdings - by YMPL - 02-08-2017, 09:28 AM
RE: China Sunsine Chemicals Holdings - by weijian - 02-08-2017, 11:57 AM
RE: China Sunsine Chemicals Holdings - by weijian - 09-08-2017, 11:52 AM
RE: China Sunsine Chemicals Holdings - by brattzz - 09-08-2017, 01:41 PM
RE: China Sunsine Chemicals Holdings - by FA+TA - 09-08-2017, 06:03 PM
RE: China Sunsine Chemicals Holdings - by YMPL - 09-08-2017, 06:03 PM
RE: China Sunsine Chemicals Holdings - by weijian - 09-08-2017, 09:48 PM
RE: China Sunsine Chemicals Holdings - by banker - 17-08-2017, 08:49 PM
RE: China Sunsine Chemicals Holdings - by weijian - 17-08-2017, 09:33 PM
RE: China Sunsine Chemicals Holdings - by YMPL - 15-08-2017, 01:56 PM
RE: China Sunsine Chemicals Holdings - by YMPL - 15-08-2017, 08:40 PM
RE: China Sunsine Chemicals Holdings - by Sfsh12 - 24-08-2017, 09:46 PM
RE: China Sunsine Chemicals Holdings - by crubs - 08-10-2017, 09:43 PM
RE: China Sunsine Chemicals Holdings - by crubs - 09-10-2017, 05:37 PM
China Sunsine Chemicals Holdings - by kyle - 16-11-2017, 02:11 PM
RE: China Sunsine Chemicals Holdings - by DCF - 05-12-2017, 05:23 PM
RE: China Sunsine Chemicals Holdings - by DCF - 28-12-2017, 09:34 AM
RE: China Sunsine Chemicals Holdings - by DCF - 02-01-2018, 04:42 PM
RE: China Sunsine Chemicals Holdings - by cyclone - 19-04-2018, 07:45 PM
RE: China Sunsine Chemicals Holdings - by Terry - 20-04-2018, 06:10 PM
RE: China Sunsine Chemicals Holdings - by DCF - 11-06-2018, 04:48 PM
RE: China Sunsine Chemicals Holdings - by DCF - 22-06-2018, 03:32 PM
RE: China Sunsine Chemicals Holdings - by cyclone - 09-07-2018, 02:19 PM
RE: China Sunsine Chemicals Holdings - by cyclone - 09-07-2018, 06:02 PM
RE: China Sunsine Chemicals Holdings - by touzi - 15-08-2018, 09:39 PM
RE: China Sunsine Chemicals Holdings - by cyclone - 20-09-2019, 06:58 PM
RE: China Sunsine Chemicals Holdings - by touzi - 27-05-2020, 10:28 AM
RE: China Sunsine Chemicals Holdings - by weijian - 27-05-2020, 02:52 PM
RE: China Sunsine Chemicals Holdings - by touzi - 27-05-2020, 11:31 PM
RE: China Sunsine Chemicals Holdings - by d.o.g. - 25-08-2023, 06:09 PM
RE: China Sunsine Chemicals Holdings - by weijian - 24-04-2024, 11:07 AM
RE: China Sunsine Chemicals Holdings - by dzwm87 - 16-09-2024, 10:28 AM
RE: China Sunsine Chemicals Holdings - by weijian - 17-09-2024, 04:42 PM

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