China Sunsine Chemicals Holdings

[CityFarmer]

China Sunsine Chem serves over 55%of the world's top 75 tyre-makers. How is it able to maintain its competitive advantage over its rivals?

It cited challenging operating environment such as falling demand from key export markets, over-capacity, increased raw material and operating costs and pricing pressures. What are the entry barriers for this type of industries? 1st-mover advantage? Marketing strategies?

Its latest FY2011 result seems to suggest that its margins have been eroded?

Any views?

This is one of the S-Chip i am monitoring.

The eroded margin is mainly due to one-time re-location expense (Facility 1 to Facility 2). Another factor is due to additional expense of installing new production line in Facility 3

IMO, Overall nothing seem deteriorating.