Equity Analysis /

SG : China Sunsine Chemical Holdings - A record half despite a challenging backdrop

    Khangchuen Ong
    Khangchuen Ong

    Research Analyst

    15 August 2022
    Published byCGS-CIMB

    1H22 core net profit of Rmb391m (+48% yoy) a record high, driven by higher ASPs, favourable gross profit spread and concessionary tax rates. While Sunsine’s profit spread should remain healthy in the near term, we think China’s Covid woes may pose downside risk to its 2H sales volumes. Reiterate Add given undemanding valuations at 1.9x FY23F P/E (ex-cash).