China Sunsine Chemical Holdings rated 'hold' by Phillip Securities

Phillip Securities Research in an Apr 30 research report says: "China Sunsine reported a decent set of results for 1Q12. The company achieved record revenue on the back of record sales volume. 1Q12 revenue was RMB324 million, an improvement of 27.1% over the same period a year ago.

"Net income doubled to RMB26.9 million. However on an adjusted basis, net income actually fell 14.1%. The strong growth in revenue was propelled by a marketing strategy that involves ASP reduction.

"Going down to the bottom line, this explains the drop in net income on an adjusted basis, which also highlights the competitiveness of the industry. We are now looking out for two issues. Customers’ response to 6PPD and positive accretion of “price reduction” strategy. Target price of 25 cents. MAINTAIN HOLD

China Sunsine Chemical Holdings rated 'buy' by Phillip Securities

Phillip Securities Research in an Apr 27 research report says: "1Q11 revenue came in at RMB254.8 million (+25.7% y-o-y, -6.8% q-o-q) and net profit was RMB13.0 million (-57.2% y-o-y, -43.0% q-o-q). Sequentially, 1st quarter would be weaker than the 4th quarter due to the Chinese new year holiday period. Overall, the financial results did not veer too far off from our estimates.

"Management had pre-warned of the impairment write-down as well as the reversion of tax rate, so even though bottom-line might have shown a jaw dropping 60% decrease, shareholders and analyst alike weren't too bothered. To us, we are holding on for another year to savour the fruits of labour in the next year.

"To us, industry prospect is still optimistic and we believe the company is well managed. Target price of 36 cents, representing a forward earnings peg of 7.5x. MAINTAIN BUY."