China Sunsine Chemical - UOB Kay Hian 2024-10-07: Safe Proxy To China & Oil Price Recovery With Good Yield; Raise Target Price By 26%

• 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.
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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.

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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:
2025-03-26 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