China Sunsine Chemical Holdings: Strong Q3 Performance and Expansion Plans Ignite Investor Interest
China Sunsine Chemical Holdings Ltd. has released its business updates for the first three quarters of 2024, showcasing a robust economic performance and strategic growth plans that could impact share values significantly.
Key Financial Highlights
- China’s GDP grew 4.8% year-on-year in the first three quarters of 2024, with a 4.6% growth in the third quarter alone.
- Total tyre production in China increased by 9.1%, reaching 833.55 million units.
- Automakers in China sold 21.57 million units, a 2.4% increase year-on-year, with New Energy Vehicles (NEVs) sales up by 32.5%, totaling 8.32 million units.
Group Performance
In the third quarter of 2024, China Sunsine Chemical Holdings sold 54,091 tonnes of products, resulting in a slight 1% increase in sales revenue to RMB 884.1 million. The average selling price (ASP) rose by approximately 5% to RMB 16,147 per tonne due to increased raw material costs. Notably, net profit surged by 43% to RMB 92.9 million compared to RMB 65.0 million in the same period in 2023.
For the year-to-date (YTD) period ending in the third quarter of 2024, the Group sold 159,555 tonnes of products, and sales revenue grew by 1% year-on-year to RMB 2,633.2 million. Net profit for this period increased by 9% to RMB 281.7 million.
Strategic Updates and Capacity Expansion
Despite global economic challenges such as high interest rates, geopolitical tensions, and local competition, China Sunsine remains optimistic due to China’s stimulus policies aimed at boosting economic activity.
The Group is on track with its capacity expansion plans:
- Phase 1: 20,000-tonne per annum Continuous Production of High-Quality MBT project – Trial runs are nearly complete, with commercial production expected to commence by the end of 2024.
- Phase 2: 30,000-tonne per annum IS project – Machinery installation is underway, and completion is anticipated by the end of 2024.
Estimated Annual Capacity
| Tonnes |
FY2019 |
FY2020 |
FY2021 |
FY2022 |
FY2023 |
FY2024 |
FY2025e |
| Accelerators |
97,000 |
117,000 |
117,000 |
117,000 |
117,000 |
117,000 |
117,000 |
| Insoluble Sulphur |
30,000 |
30,000 |
30,000 |
60,000 |
60,000 |
60,000 |
60,000 |
| Anti-oxidant |
45,000 |
45,000 |
45,000 |
77,000 |
77,000 |
77,000 |
77,000 |
| Total |
172,000 |
192,000 |
192,000 |
254,000 |
254,000 |
254,000 |
254,000 |
Shareholder Information
With the commercial commencement of the new production lines by the end of 2024 and the increased demand for the Group’s products driven by China’s economic stimulus measures, shareholders can anticipate potential growth in revenue and profitability. The strategic expansion and market leadership position reinforce China Sunsine’s competitive edge in the rubber chemicals industry.
China Sunsine Chemical Holdings remains committed to maintaining its “sales production equilibrium” strategy while enhancing its market leadership.
For further inquiries, shareholders can contact:
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to conduct their own research or consult a financial advisor before making any investment decisions.
