The company supplies accelerators, insoluble sulphur and anti-oxidants used in compounding and vulcanisation. Rubber chemicals are a small share of tyre cost, but they affect cure speed, durability and production reliability; qualified suppliers therefore have stronger retention than a generic commodity label implies, says Chong.
Chong Ting Shuo of KGF Securities has initiated coverage on China Sunsine Chemical Holdings with an "outperform" call and target price of $1.145.
China Sunsine is described by Chong as a company whose products are "embedded in a mission-critical tyre input chain".
