Stock Name: SunVic
Company Name: SUNVIC CHEMICAL HOLDINGS LTD
Research House: Phillip Securities
Phillip Securities Research in a May 16 research report says: "Revenue and net profit are 15% and 38% of our own full year forecast respectively. However we were not surprise, because we had been keeping our fingers crossed.
"Revenue for 1Q11 was RMB990.1 million (+52.0% y-o-y, +8.7% q-o-q), net profit was RMB221.1 million (+319.4% y-o-y, -26.4% q-o-q). Stripping out the tax rebate recognized in 4Q10, 1Q11 net profit would be on par with 4Q10. The high ASP led to a 20%pt improvement in gross profit margin (GPM) to 35%. We are keeping our forecast numbers unchanged for the moment.
"While 1Q11 results had been impressive, the moderation in GPM is an indication of rising raw material cost, the main one being propylene, a derivative of heavy oil. Target price of $1.20, which implies a forward earnings peg of 6x. MAINTAIN BUY."
Company Name: SUNVIC CHEMICAL HOLDINGS LTD
Research House: Phillip Securities
Phillip Securities Research in a May 16 research report says: "Revenue and net profit are 15% and 38% of our own full year forecast respectively. However we were not surprise, because we had been keeping our fingers crossed.
"Revenue for 1Q11 was RMB990.1 million (+52.0% y-o-y, +8.7% q-o-q), net profit was RMB221.1 million (+319.4% y-o-y, -26.4% q-o-q). Stripping out the tax rebate recognized in 4Q10, 1Q11 net profit would be on par with 4Q10. The high ASP led to a 20%pt improvement in gross profit margin (GPM) to 35%. We are keeping our forecast numbers unchanged for the moment.
"While 1Q11 results had been impressive, the moderation in GPM is an indication of rising raw material cost, the main one being propylene, a derivative of heavy oil. Target price of $1.20, which implies a forward earnings peg of 6x. MAINTAIN BUY."
