Singapore Stock Market News

China Sunsine Chemical Holdings - Plunge in raw material costs

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Publish date: Mon, 02 Jul 2018, 01:16 PM
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■ Shutdown of several chemical factories in downstream industry in May has impacted demand for aniline, leading to 25% plunge in price to Rmb7,400/ton as at 28 Jun 18.

■ If ASPs for rubber accelerators remain unchanged, Sunsine could possibly see betterthan-expected gross margins in 3Q18F.

■ A rising US$ against renminbi would benefit Sunsine as the group has a net asset exposure of Rmb424m in US$ as at end-FY17.

■ Anticipate Sunsine to extend record profit streak to 2Q18F following its closest peer's strong profit guidance amid favourable market conditions.

Maintain Add with unchanged EPS and TP of S$1.87.
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