China Sunsine Chemical - CGS-CIMB Research 2023-11-16: Record High Sales Volumes In 3Q23 But Hit By Weaker Margins

• China Sunsine Chemical (SGX:QES)’s 3Q23 net profit of RMB65m (-49% q-o-q/ y-o-y) was below our expectations, with 9M23 net profit forming 64% of our FY23F forecast. The miss was likely due to a weaker-than-expected gross profit margin (undisclosed), which we estimate at 19% (-8% points y-o-y), as intense industry competition weighed on profitability.
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ASP uptick could point to slight q-o-q improvement in 4Q23F spread

• According to commodity information service provider sci99.com, rubber accelerator prices rose strongly in September/October, with average prices rising 17%/18% (vs. end-August prices), before tapering in November.
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FY24F: healthy volume growth, competition to remain intense

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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/.

Previous report by CGS-CIMB:
2023-09-21 China Sunsine Chemical - Strong ASPs Could Point To A Better 2H23.

Price targets by other brokers at China Sunsine Target Prices.

Listing of research reports at China Sunsine Analyst Reports.

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