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

• As China Sunsine has an attractive 6% yield and is trading at only 1.4x ex-cash 2025F P/E, we maintain BUY with a 9% higher target price of S$0.63.
• China Sunsine’s sales volumes are expected to maintain an upward trend, driven by China’s stimulus measures and rising tyre exports. While average ASPs may decline on lower raw material prices, we anticipate stable gross margins thanks to its market leadership and added MBT production. Also, the recent 20% dividend increase for 2024 is a strong signal of confidence.

Expect volumes to maintain an upward trajectory.

• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -

Chinese tyre makers continue to offshore production for better access to natural rubber, cost savings, and trade advantages.

• Read more at SGinvestors.io.

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/.

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

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