- We believe Sunsine is a safe proxy to China’s recovery play as it is deeply undervalued at 2x ex-cash 2024F P/E, trading at a 40% discount to its book value.
- As the Chinese economy recovers with the recent stimulus rollout and higher oil prices brought about by the Middle East conflict, Sunsine’s demand and ASPs may benefit.
- - Read this at SGinvestors.io -
Potential improvement in demand and ASPs from stronger Chinese economy and oil prices.
- China’s latest stimulus measures have improved investor sentiment and may boost consumer confidence. In addition, oil prices have risen due to the Middle East conflict. In turn, China Sunsine Chemical (SGX:QES)’s demand could see an uptick in the coming months on the back of stronger demand for vehicles as well as better ASPs as Sunsine’s product is a derivative of petroleum products.
- - Read this at SGinvestors.io -
Good dividend yield of around 5% backed by strong balance sheet.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Singapore Research UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-10-07
Previous report by UOB:
2023-12-14 China Sunsine Chemical - Compressed Margins Amid Intensified Competition.
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 Dividends & Corporate Actions,
China Sunsine News Articles
