SunVic - Sunvic Chemical restarted at Buy by Phillip Securities

Stock Name: SunVic
Company Name: SUNVIC CHEMICAL HOLDINGS LTD
Research House: Phillip Securities

Phillip Securities restarts Sunvic Chemical (A7S.SG) at Buy with $0.60 target price, pegged at 5.5x FY10 P/E, according to Dow Jones.



Phillip Securities says FY10 will be record year for China-based chemical maker in terms of revenue and profit, backed by strong recovery in selling prices, resilient demand.

“There is enough visibility to extend this view by a further two years to FY 2012,” says broker.



Phillip Securities notes Sunvic setting up plants to produce own raw materials for making chemicals, resulting in cost savings, better margins. Says 1H 2010 RMB156.2 million ($30.9 million) net profit has already surpassed last three years’ respective full-year earnings.



Forecasts FY10 net profit of RMB300.9 million. Shares +6.5% at $0.410.