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QuestionsCategory: Stock ScreeningChina Sunsine
Raymond Lee asked 3 years ago

Hi,
What are your opinions on China Sunsine? It seems the company is in a cyclical industry. However, I find that the company is in a niche area of producing rubber accelerators which I observed that the revenue seems to be recurring in nature. The yoy growth seems to be good as well. 
P.s. Thank you for the IQ workshop yesterday. I find it quite helpful in reinforcing my conviction that the market seems to be attractive now.

1 Answers
Victor Chng answered 3 years ago

Hi Raymond,

 

I have not analyse this company before hence I don’t have much information about it. My concern about this company is that it is a chinese listed company in Singapore. Most of these chinese listed company have beautiful numbers but after sometime fradulent account started to surface. That is also why you can see them trading at a very low PE multiple because most investors in Singapore will avoid them.

Raymond Lee replied 3 years ago

Hi Victor,

Thanks for your inputs.

Mun seng Lee replied 3 years ago

Hi, just to share my inputs. I have been/am a shareholder of China Sunsine. IMO, They are one of the better run S chips companies. Victor is right abt S chips..if you are new to investing, its better to be safe and skip. China Sunsine has been paying dividends since 2007, year of listing. Recent years divdends payout has increased and they hv adopted a dividend policy. Management has been relatively prudent with small dividend as they pared down debts. Company is now debt free. IMO, Management also is too not bad in capital allocation too. They had in fact bought back shares previously at a low price and kept as Treasury shares. And then they did a share placement at a higher price. Be careful and good luck.

Raymond Lee replied 3 years ago

Thanks for your helpful insights.

Victor Chng replied 3 years ago

Great sharing Mun Seng