China Sunsine Chemical - UOB Kay Hian 2023-12-14: Compressed Margins Amid Intensified Competition

• China Sunsine provided a 3Q23 update, reporting a record-high quarterly sales volume (+16.3% y-o-y). However, lower ASPs and a flexible pricing strategy led to lower 3Q23 sales (-5% y-o-y). 3Q23 net profit fell 49% y-o-y, taking 9M23 net profit to RMB259.6m and missing our forecast.
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Margins below expectations.

• China Sunsine Chemical (SGX:QES) reported 3Q23 revenue of RMB875m (-5% y-o-y), mainly due to lower average selling prices of rubber accelerators and its newly-adopted flexible pricing strategy. This was partially mitigated by record-high quarterly sales volume of 56,114 tonnes (+16.3% y-o-y), from the more flexible pricing strategy implemented to remain competitive in the Chinese rubber chemicals industry.
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Potential near-term benefit from higher ASPs of rubber accelerators.

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Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2025-05-28 China Sunsine Chemical - Holding Steady Amid Pricing Pressure.

Previous report by UOB:
2025-03-26 China Sunsine Chemical - Expect Volumes & Overseas Sales To Drive Growth; Raise Target Price By 9%.

Price targets by other brokers at China Sunsine Target Prices.

Listing of research reports at China Sunsine Analyst Reports.

Relevant links:
China Sunsine Share Price History,
China Sunsine Announcements,
China Sunsine Dividend Payout Dates & Corporate Actions,
China Sunsine News