To The Moon

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.