China Sunsine Chemicals Holdings

[Bluechipfan]

How enduring is Sunsine competitive edge, given China's extremely competitive landscape?
(economies of scale, attention to environmental protection, accreditation, rate of vehicle growth, great leadership?)


Some questions to ponder over:-
a. How far is it ahead of its nearest competitors?
b. Is there no way for its competitors to catch up?
c. To what extent will vehicle control in large cities impact on the demand for sunsine's product?
d. Is there any succession issue when chairman retires? (e.g. tussle for power, etc)

Lots of example from other S-chip to learn from...
a. many investors once thought China Essence was at the Top of the World when its share price was more than $1. It is now trading at less than 1 cent.
b. As we have seen in Sinograndness case, there is no way for share price to keep shooting to the moon every week.
c. Dukang - it is trading at 13 cents now. Its peak was 90 cents.

If the company is so good, why didn't the company do more share buyback?
Is it because they cannot afford the cash or is it because they have better use for their cash else where?
Or the company thinks the share price is already "too expensive" to do share buy-back?

No matter how good a counter it might be, fundamentally, it is an S chip, and all the usual cautionary notes/rules for S-chip counters would apply.
tks.

In 2011 Nestle bought 60% of Hsu Fu Chi, a Guangdong based co., at 26 times earnings.

The reference is pretty irrelevant. Hsu Fu Chi is in food industrial, while the company is in chemical processing??

If co turns into one of the common poison "S Chips" then may be PER zero...

Not Vested
GG

Here we go again despite forumers here providing objective information to show Sunsine is a sound company. Even city farmer is cautiously optimistic.

What's the point of highlighting failed China companies? I can also give you a list of failed Singapore companies, MNC, American companies, etc if you so wishes. Might as well just say history prove you right that every great empire, dynasty and business entity will all fall and ruin one day regardless of how successful they once were. Go tell Wall Street investors to divest from Alibaba because its an A chip (America listed China stock) just like S chip here.

I dont know your intention but your action is really disgusting. You have once benefited from it now you have divested and you can't wait to see it fail?