Stock Name: ChinaSsine
Company Name: CHINA SUNSINE CHEM HLDGS LTD.
Research House: Phillip Securities
Phillip Securities Research in an Apr 27 research report says: "1Q11 revenue came in at RMB254.8 million (+25.7% y-o-y, -6.8% q-o-q) and net profit was RMB13.0 million (-57.2% y-o-y, -43.0% q-o-q). Sequentially, 1st quarter would be weaker than the 4th quarter due to the Chinese new year holiday period. Overall, the financial results did not veer too far off from our estimates.
"Management had pre-warned of the impairment write-down as well as the reversion of tax rate, so even though bottom-line might have shown a jaw dropping 60% decrease, shareholders and analyst alike weren't too bothered. To us, we are holding on for another year to savour the fruits of labour in the next year.
"To us, industry prospect is still optimistic and we believe the company is well managed. Target price of 36 cents, representing a forward earnings peg of 7.5x. MAINTAIN BUY."
Company Name: CHINA SUNSINE CHEM HLDGS LTD.
Research House: Phillip Securities
Phillip Securities Research in an Apr 27 research report says: "1Q11 revenue came in at RMB254.8 million (+25.7% y-o-y, -6.8% q-o-q) and net profit was RMB13.0 million (-57.2% y-o-y, -43.0% q-o-q). Sequentially, 1st quarter would be weaker than the 4th quarter due to the Chinese new year holiday period. Overall, the financial results did not veer too far off from our estimates.
"Management had pre-warned of the impairment write-down as well as the reversion of tax rate, so even though bottom-line might have shown a jaw dropping 60% decrease, shareholders and analyst alike weren't too bothered. To us, we are holding on for another year to savour the fruits of labour in the next year.
"To us, industry prospect is still optimistic and we believe the company is well managed. Target price of 36 cents, representing a forward earnings peg of 7.5x. MAINTAIN BUY."
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