China Sunsine Chemical Holdings - A Hidden Gem

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MilkTeaBro
03-16

My initial research overlooked China Sunsine Chemical Holdings (CSCH)$ChinaSunsine(QES.SI)$  , primarily due to the volatile nature of the oil and chemical sectors. However, a recent article prompted a closer look, revealing a compelling story.

CSCH is the world's leading producer of rubber accelerators, crucial components in all rubber products. Impressively, 75% of global tire manufacturers count CSCH among their suppliers. This dominant market position, arguably unique among Singapore-listed companies in this sector, makes CSCH worthy of attention.

Further bolstering the case for CSCH is its strong financial performance. Six-month net profits surged by 32%, suggesting the company is currently in an upward cycle. The company boasts RMB 2 billion in net cash, representing 84% of its market capitalization (S$457.6 million). This translates to approximately 40 SGD cents per share, compared to a current share price of 48 cents.

This significant cash position, coupled with impressive market share and robust profit growth, paints a picture of a potentially undervalued company. Further investigation is warranted to assess the long-term prospects and risks associated with an investment in CSCH.

[Event] How To Pick Quality Companies When It Is In The Dip?
Since the beginning of the year, the market has been continuously declining, with the S&P 500 losing $5 trillion in value over 16 days. The price-to-earnings ratios of several star stocks have dropped to lower levels. While Nvidia's forward PE remains around 25, its PEG is only 0.73, indicating it is undervalued. For companies that are not yet profitable, one can look at P/S or P/B ratios. Additionally, ROA and ROE can be used to filter undervalued, high-quality companies. Do you have any tips or indicators for selecting good companies during a market downturn?
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Comments

  • FIRE45
    03-18
    FIRE45
    what will be ur target price for this? it has been at such price for very long time.
    • MilkTeaBro: 
      I don't have the target price , the net cash pile is 80% of the stock price, and net cash level ascending regardless of macro economy. just buy and hold, dream big.
  • SummerNight
    03-17
    SummerNight
    Great analysis
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