China Sunsine Chemical - Ending The Year On A High Note
- China Sunsine (SGX:QES)'s 2H21 net profit grew 77% y-o-y to RMB241m, above expectations, driven by stronger gross profit/ton (+26% y-o-y) and higher sales volumes (+9% y-o-y).
- Capacity expansion to support further volume growth in FY22F, but we caution on near-term volatility in view of escalating international oil prices.
- Reiterate ADD call on China Sunsine with target price of S$0.78, still pegged to 1.05x FY22F P/BV (0.5 standard deviation above its 10- year historical mean). China Sunsine's valuation remains attractive at 2x FY23F P/E (ex-cash).
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
ONG Khang Chuen CFA CGS-CIMB Research | https://www.cgs-cimb.com 2022-02-24 2022-02-24
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