On Nov 11, China Sunsine reported a core net profit of RMB128 million ($24.5 million) for 3QFY2022, which was 28% higher y-o-y but 45% lower q-o-q. The quarterly net profit brought China Sunsine’s 9MFY2022 net profit to about 88% of the analysts’ FY2022 forecast despite the challenging macro environment.
CGS-CIMB Research analysts Ong Khang Chuen and Kenneth Tan are keeping their “add” call on China Sunsine Chemical Holdings after the company’s results for the 3QFY2022 ended Sept 30 came in above expectations.
The positive recommendation also comes as the company’s valuations are deemed as “attractive” to the analysts, at an FY2023 P/E ratio (ex-cash) of 1.9x. China Sunsine’s strong free cash flow generation track record is also seen as a plus.
