Rubber accelerator prices in China have been escalating.
What is China.Sunsine's own experience? Any financial significance?
I think price factored in the above news already. In my view, only the EPS level and the resulting dividend rate will provide the next catalyst. For FY17's EPS, prior to the treasury shares sales it should have no problem hitting close to sgd 15 cents. Now I project FY17's EPS to be between sgd 13 cents and 13.5 cents the most. I am happy with the 1/2 cent interim dividend and I reckon there should be another 2 cents of dividend when FY17 comes to an end. 3Q17's results should provide a clear indication with regard to full year's EPS.
Rubber accelerator prices in China have been escalating.
What is China.Sunsine's own experience? Any financial significance?
I think price factored in the above news already. In my view, only the EPS level and the resulting dividend rate will provide the next catalyst. For FY17's EPS, prior to the treasury shares sales it should have no problem hitting close to sgd 15 cents. Now I project FY17's EPS to be between sgd 13 cents and 13.5 cents the most. I am happy with the 1/2 cent interim dividend and I reckon there should be another 2 cents of dividend when FY17 comes to an end. 3Q17's results should provide a clear indication with regard to full year's EPS.
I was not referring to the share price.
Supply of rubber accelerators is tight ("供货紧张"), prices are increasing, how can we tell from China Sunsine's financial information?
Tiongkokgor wrote: "Supply of rubber accelerators is tight ("供货紧张"), prices are increasing, how can we tell from China Sunsine's financial information?"
When supply of rubber chemicals is tight, tyre makers pay promptly. Rubber chemical producers also sell more to clients who pay fast. The proportion of invoiced amounts that are unpaid declines.
This trend has shown up -- in 1Q 2016, a customer invoice was outstanding for 86 days before it is paid; but in 2Q 2017, it was down to 70 days:
* Invoices to local customers include the 17% output VAT.
** Trade receivable days is the number of days that a customer invoice is outstanding before it is paid. It is Number of days in the quarter x (Unpaid amounts / Invoiced amounts).
(29-09-2017, 03:46 PM)portuser Wrote: Tiongkokgor wrote: "Supply of rubber accelerators is tight ("供货紧张"), prices are increasing, how can we tell from China Sunsine's financial information?"
When supply of rubber chemicals is tight, tyre makers pay promptly. Rubber chemical producers also sell more to clients who pay fast. The proportion of invoiced amounts that are unpaid declines.
This trend has shown up -- in 1Q 2016, a customer invoice was outstanding for 86 days before it is paid; but in 2Q 2017, it was down to 70 days:
* Invoices to local customers include the 17% output VAT.
** Trade receivable days is the number of days that a customer invoice is outstanding before it is paid. It is Number of days in the quarter x (Unpaid amounts / Invoiced amounts).
Thanks Portuser.
I suppose the same would apply from Sunsine's suppliers that provide the raw materials like Anilene, which is also short in supply. Looking at Sunsine's strong cash position, Sunsine should be able to pay its suppliers promptly to secure ithe raw materials.
I just got this report (attached herein) from my broker yesterday. May be this partially explained why Sunsine's share price crept up last week.
The report mentioned that the average selling price (ASP) of CBS (CZ) has increased by 40% since the start of the year to RMB 28K to 29K per ton in Sept 2017.
I understand that CBS is only one of the many types of rubber accelerators that Sunsine produces. Its price is probably only in the middle of Sunsine's accelerators price range.
CBS, referred to in the KGI's report for its price surge in September, is just one of the many types of rubber accelerators.
China Sunsine does not disclose the prices of its individual products. We only have RMB 17,750 as its average rubber accelerator price in 2016.
Selling prices of individual rubber accelerators can be found in the draft IPO prospectus of Tianjin Kemai, Sunsine's main competitor, however:
.............Average price in 2016 (RMB / tonne) TBBS............22,169 DPG..............21,468 DCBS............20,281 CBS..............18,059 MBTS............15,883 Sunsine's rubber accelerator ASP in 2016 (RMB 17,750) was close to CBS's RMB 18,059.
Sunsine's average accelerator price (RMB / tonne) has been creeping up:
Prices reported by Sunsine / Kemai and CBS price (referred to in KGI's report) are not comparable. This is because the CBS price includes value added tax. The RMB 28,000 CBS price in September translate into RMB 24,000 without the 17% tax.
The price chart in the KGI's report shows that CBS was dearer in 3Q17 than 2Q17 by about RMB 1,000 on average. (The CBS price surge happened only in September.) If price parity between Sunsine' ASP and CBS market price maintains, 3Q17 likely has outdone 2Q17 unless sales volume disappoints.
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