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

• Market Cap: S$538.62M
• Dividend Yield: 3.74%
• Average Volume (3M): 389.76K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.39
• Revenue Growth: -1.37%
• EPS Growth: 12.13%
• Country: SG
• Employees: 2,000
• Sector: Industrials
• Sector Strength: 87
• Industry: Chemicals - Specialty
• EPS (TTM): 0.04
• Shares Outstanding: 983,388,000
• 10 Day Avg. Volume: 240,190
• 30 Day Avg. Volume: 389,756
• PEG Ratio: 0.12
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 43.32
• 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

• Rating: 79 Outperform
• Price Target: ―

China Sunsine Chemical Holdings Ltd. presents a strong investment opportunity with robust financial health, marked by solid profitability and a debt-free balance sheet. The stock's technical indicators show a positive trend, albeit with limited data for comprehensive analysis. The valuation is attractive, with a low P/E ratio and steady dividend yield. However, investors should remain vigilant regarding the slight declines in revenue growth and operating cash flow.

China Sunsine Chemical Holdings Ltd. Business Overview & Revenue Model

Company Description

China Sunsine Chemical Holdings Ltd. is a leading specialty chemical company primarily engaged in the manufacturing and sale of rubber chemicals. It operates in the chemical manufacturing sector, focusing on products such as rubber accelerators, anti-scorching agents, and antioxidants. These chemicals are crucial in the production of tires and other rubber products, serving a global clientele that includes major tire manufacturers.

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

China Sunsine Chemical Holdings Ltd. exhibits a strong financial standing with consistent revenue growth, solid profitability margins, and an impressive debt-free balance sheet. While cash flow management remains sound, slight declines in revenue growth and operating cash flow warrant attention. The firm's high equity ratio and return on equity highlight prudent financial management, positioning it well within the specialty chemicals industry.

Income Statement

The company demonstrated a solid performance with a consistent revenue growth pattern over the years, increasing from 2020 to 2024. The gross profit margin and net profit margin in 2024 are 24.2% and 12.1%, respectively, indicating strong profitability. The EBIT margin of 12.6% and EBITDA margin of 16.4% show efficient operational management. However, the revenue growth rate from 2023 to 2024 was modest at 0.7%, suggesting a potential saturation in growth.

Balance Sheet

The balance sheet reflects a robust financial position with a debt-free status, enhancing financial flexibility. The equity ratio is high at 89.9% for 2024, signifying strong equity backing. The return on equity stands at 10.1%, reflecting efficient use of shareholders' funds. With no debt, the company minimizes financial risk, but the equity growth has been moderate.

Cash Flow

The company shows strong cash generation capabilities, with a free cash flow growth rate of 9.5% from 2023 to 2024. The operating cash flow to net income ratio is healthy, indicating effective cash management. The free cash flow to net income ratio is robust, maintaining efficient cash conversion. However, the decrease in operating cash flow from 2023 to 2024 could pose a challenge if continued.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.52B	3.49B	3.83B	3.73B	2.33B
	Gross Profit
850.00M	798.92M	1.16B	1.05B	600.30M
	EBIT
442.40M	368.96M	690.41M	699.12M	301.50M
	EBITDA
575.30M	519.70M	853.72M	829.35M	423.88M
	Net Income Common Stockholders
423.90M	372.46M	642.44M	506.33M	218.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.07B	1.69B	1.36B	1.38B	1.33B
	Total Assets
4.68B	4.39B	4.22B	3.92B	3.17B
	Total Debt
0.00	0.00	0.00	0.00	0.00
	Net Debt
-2.07B	-1.69B	-1.36B	-1.38B	-1.33B
	Total Liabilities
470.30M	459.26M	532.66M	747.22M	451.37M
	Stockholders Equity
4.21B	3.93B	3.69B	3.18B	2.72B
Cash Flow		Free Cash Flow
459.50M	419.50M	48.97M	79.75M	151.58M
	Operating Cash Flow
573.30M	593.42M	207.49M	371.30M	426.88M
	Investing Cash Flow
-55.30M	-137.47M	-140.92M	-262.52M	-235.50M
	Financing Cash Flow
-137.40M	-141.07M	-121.59M	-52.64M	-103.61M

China Sunsine Chemical Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:QES, the sentiment is Neutral. The current price of 0.56 is above the 20-day moving average (MA) of 0.55, above the 50-day MA of 0.52, and above the 200-day MA of 0.45, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 65.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	79 Outperform	S$538.62M	6.50	10.37%	3.74%	-1.37%	12.13%
AP4	66 Neutral	S$1.06B	12.62	16.16%	4.61%	19.23%	13.36%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%

China Sunsine Chemical Holdings Ltd. Corporate Events

China Sunsine Chemical Holdings Reports Q1 2025 Business Update Amidst Market Challenges

In the first quarter of 2025, China Sunsine Chemical Holdings Ltd. reported a slight increase in sales volume but a marginal decrease in sales revenue due to lower average selling prices, despite a 27% rise in net profit. The company faces intense competition in the Chinese rubber chemicals industry and challenges from global economic uncertainties, yet it remains committed to its strategy of ‘Sales and Production Equilibrium’ and enhancing internal efficiency. The company is also progressing with its capacity expansion plans, with a trial run of its Phase 2 IS project underway, expected to commence commercial production by the end of 2025.