Referring to China Sunsine’s business update for the 3QFY2023 ended Sept 30, the analysts note that the lower quarterly revenue was due to lower average selling prices (ASPs) of rubber accelerators and the company’s newly-adopted flexible pricing strategy. This was partly mitigated by a record-high quarterly sales volume, which grew by 16.3% y-o-y to 56,114 tonnes.
UOB Kay Hian analysts Heidi Mo and John Cheong have kept their “buy” call on China Sunsine Chemical although they have lowered their target price to 46 cents from 57.5 previously.
The target price is pegged to a multiple of 6 times the company’s FY2024 P/E, which is its long-term average mean.
