China Sunsine Chemical Holdings Ltd. (QES) AI Stock Analysis

• Market Cap: S$708.46M
• Dividend Yield: 4.4%
• Average Volume (3M): 838.81K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.55
• Revenue Growth: -3.11%
• EPS Growth: 28.89%
• Country: SG
• Employees: 2,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.05
• Shares Outstanding: 983,388,000
• 10 Day Avg. Volume: 533,940
• 30 Day Avg. Volume: 838,808
• PEG Ratio: 0.42
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 4.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: S$0.90 ▲(10.12% Upside)

The score is driven primarily by strong financial performance—especially the very strong balance sheet and 2024 operating rebound—tempered by earnings and cash-flow cyclicality. Valuation is a clear positive (low P/E and solid dividend yield), while technicals are supportive but largely neutral in momentum.

Positive Factors

Balance Sheet Strength

A strong balance sheet with minimal debt enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Cash Generation

Improved cash generation indicates efficient operations and provides the company with resources to fund expansion, pay dividends, or reduce debt, supporting long-term stability.

Capacity Expansion

Capacity expansion positions the company to meet future demand and capture market share, potentially driving revenue growth and enhancing competitive positioning.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in maintaining market share or pricing power, which could pressure margins and profitability if not addressed.

Cyclicality

Cyclicality in margins and cash flow can lead to unpredictable earnings, complicating long-term planning and potentially affecting investor confidence.

Geopolitical and Competitive Challenges

Geopolitical tensions and competition may impact market dynamics and pricing, potentially hindering growth and profitability in key markets.

China Sunsine Chemical Holdings Ltd. Business Overview & Revenue Model

Company Description

China Sunsine Chemical Holdings Ltd., an investment holding company, manufactures and sells specialty chemicals in the People's Republic of China, rest of Asia, the United States, Europe, and internationally. The company operates through three segments: Manufacturing and Sale of Rubber Chemicals; Production and Supply of Heating Power; and Waste Treatment. It offers rubber accelerators, anti-oxidant agents, anti-scorching agents, and insoluble sulphur used for the production of tires, and other rubber related products, such as tubes, belts, shoes, rollers, cables, seals, latex products, and other light-color rubber products. The company provides its products under the Sunsine brand name. It is also involved in the production and supply of heating power; and hotel and restaurant business. The company primarily serves the tire companies. China Sunsine Chemical Holdings Ltd. was incorporated in 2006 and is based in Singapore. China Sunsine Chemical Holdings Ltd. is a subsidiary of Success More Group Limited.

How the Company Makes Money

China Sunsine Chemical Holdings Ltd. generates revenue primarily through the production and sale of rubber chemicals. The company's key revenue streams include the sale of rubber accelerators, which are used to speed up the vulcanization process in tire manufacturing. Additionally, they sell anti-scorching agents and antioxidants, which enhance the quality and durability of rubber products. The company benefits from strategic partnerships with leading tire manufacturers and a strong distribution network, which help maintain a steady demand for their products. Their earnings are also supported by their ability to scale production efficiently and maintain competitive pricing in the global market.

China Sunsine Chemical Holdings Ltd. Financial Statement Overview

Summary

Strong overall financial profile led by an exceptionally strong, low-leverage balance sheet (minimal to no reported debt; steadily rising equity) and a clear 2024 rebound in revenue and profitability. Key risk is cyclicality: margins and cash conversion have been notably volatile and remain below 2021–2022 peak levels, with ROE down to ~10% in 2024.

Income Statement

Profitability is solid with 2024 net margin around 12% and EBITDA margin near 16%, and revenue rebounded strongly in 2024 (up ~33%). However, margins and earnings are still below the 2021–2022 peak levels (when net margin was materially higher), showing the business can be more cyclical than it appears in the latest year.

Balance Sheet

Balance sheet strength stands out: reported debt is effectively minimal to none in recent years and equity has steadily grown, supporting financial flexibility. The main watch-out is that returns on equity have come down from the 2022 high (mid-to-high teens) to roughly ~10% in 2024, implying profitability has not fully kept pace with the expanding equity base.

Cash Flow

Cash generation improved meaningfully in 2023–2024, with operating cash flow exceeding net income (about 1.2x in 2024) and healthy free cash flow (roughly 80% of net income in 2024). The weakness is volatility: 2021–2022 showed much weaker cash conversion and low free cash flow relative to earnings, indicating working-capital swings or higher reinvestment needs in down-cycle periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.57B	3.52B	3.49B	3.83B	3.73B	2.33B
Gross Profit	624.00M	850.00M	798.92M	1.16B	1.05B	600.30M
EBITDA	517.55M	575.30M	519.70M	813.11M	738.45M	416.90M
Net Income	360.25M	423.90M	372.46M	642.44M	506.33M	218.78M
Balance Sheet
Total Assets	4.78B	4.68B	4.39B	4.22B	3.92B	3.17B
Cash, Cash Equivalents and Short-Term Investments	2.23B	2.07B	1.69B	1.36B	1.38B	1.33B
Total Debt	0.00	0.00	0.00	0.00	225.32M	0.00
Total Liabilities	479.60M	470.30M	459.26M	532.66M	747.22M	451.37M
Stockholders Equity	4.30B	4.21B	3.93B	3.69B	3.18B	2.72B
Cash Flow
Free Cash Flow	290.70M	459.50M	419.50M	48.97M	79.75M	151.58M
Operating Cash Flow	388.65M	573.30M	593.42M	207.49M	371.30M	426.88M
Investing Cash Flow	-69.60M	-55.30M	-137.47M	-140.92M	-262.52M	-235.50M
Financing Cash Flow	-81.90M	-137.40M	-141.07M	-121.59M	-52.64M	-103.61M

China Sunsine Chemical Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:QES, the sentiment is Negative. The current price of 0.82 is above the 20-day moving average (MA) of 0.78, above the 50-day MA of 0.78, and above the 200-day MA of 0.69, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 39.31 is Neutral, neither overbought nor oversold. The STOCH value of 12.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:QES.

China Sunsine Chemical Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QES	80 Outperform	S$708.46M	7.94	11.64%	4.40%	-3.11%	28.89%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5VJ	38 Underperform	S$653.95M	-8.65	―	―	23.21%	-3.27%

China Sunsine Chemical Holdings Ltd. Corporate Events

China Sunsine Reports Q3 Revenue Dip Amid Industry Challenges

China Sunsine Chemical Holdings Ltd. reported a decrease in sales revenue and net profit for the third quarter of 2025 due to lower average selling prices, despite a slight increase in sales volume. The company is facing challenges from geopolitical tensions and strong local competition but remains optimistic about future growth, supported by China’s economic stimulus measures. The company is also progressing with its capacity expansion plans, expecting commercial production from its new project by the end of 2025.

China Sunsine Chemical Unveils New Dividend Policy for 2025-2026

China Sunsine Chemical Holdings Ltd. has announced a new dividend policy aimed at enhancing long-term shareholder value. The company plans to distribute annual dividends of at least 40% of its consolidated net profit after tax for the financial years ending in 2025 and 2026, contingent on various financial and strategic factors. This policy reflects the company’s commitment to consistent shareholder returns and aligns with its historical dividend practices, which have included both ordinary and special dividends.

China Sunsine Wins Fourth Transparency Award at SIAS 2025

China Sunsine Chemical Holdings Ltd. has been awarded the ‘Most Transparent Company Award’ in the Mid Cap Category at the SIAS Investors’ Choice Awards 2025. This marks the fourth time the company has received this recognition, highlighting its commitment to corporate governance, sustainability, and effective investor communication.

China Sunsine’s Majority Shareholder Divests 42 Million Shares

China Sunsine Chemical Holdings Ltd. announced that its majority shareholder, Success More Group Limited, sold 42 million ordinary shares to 86 investors, including institutional and high-net-worth individuals, for S$27.72 million. This sale marks Success More’s first divestment since the company’s IPO in 2007, driven by the Executive Chairman’s intent to fund philanthropic activities and reward past employees, with a commitment to a six-month moratorium on further sales.