Company Coverage
China Sunsine Chemical (CSSC SP): 1H26: Lacklustre Environment Offset By Decent 5% Yield
HOLD (Maintained)
Current price:
Target price:
Upside:
Previous TP :
S$0.66
S$0.71
+7.6%
S$0.70
Analyst
Analyst
Highlights
- Sunsine’s 1H26 revenue of Rmb2.01b (+19% yoy) and PATMI of Rmb254.3m (+5% yoy) were ahead of expectations.
- Record volumes (+9% yoy), driven by strong growth in accelerators and insoluble sulphur as well as increase in international volumes (+17% yoy).
- Operating environment is expected to remain challenging from intense competition. Maintain HOLD with a 1.4% higher target price of S$0.71.
Analysis
1H26 revenue and earnings ahead of expectations. China Sunsine Chemical (Sunsine) reported 1H26 revenue of Rm2.01b (+19% yoy) and PATMI of 254.3m (+5% yoy), forming 59% and 63% of our full-year forecasts respectively. On a hoh basis, revenue rose 26% while PATMI increased 57%, supported by higher ASPs and record sales volume. Gross margin improved to 25.2% (1H25: 24.6%), although profitability was partly weighed down by a Rmb48.6m forex loss and higher R&D expenses.
Sales volume at record high. 1H26 sales volume rose 9% yoy to a record 119,959 tonnes, reaching 54% of 2025’s full-year volume and putting Sunsine on track to surpass last year’s record. Growth was led by accelerators (+12% yoy) and insoluble sulphur (+17% yoy), while antioxidant volumes were broadly stable. International volumes grew a stronger 17% yoy, supported by higher orders from Chinese tyre manufacturers with overseas operations and global tyre makers, compared with 4% growth in domestic volumes.
Higher interim dividend; final payout to support 2026 policy. Sunsine declared a S$0.01/share special interim dividend for 1H26, double that in 1H25. This implies an interim payout ratio of approximately 20% of 1H26 earnings. With its 40% payout commitment for 2025-26, we expect the final dividend to make up the balance based on full-year earnings.
Highlights
- Sunsine’s 1H26 revenue of Rmb2.01b (+19% yoy) and PATMI of Rmb254.3m (+5% yoy) were ahead of expectations.
- Record volumes (+9% yoy), driven by strong growth in accelerators and insoluble sulphur as well as increase in international volumes (+17% yoy).
- Operating environment is expected to remain challenging from intense competition. Maintain HOLD with a 1.4% higher target price of S$0.71.
Analysis
1H26 revenue and earnings ahead of expectations. China Sunsine Chemical (Sunsine) reported 1H26 revenue of Rm2.01b (+19% yoy) and PATMI of 254.3m (+5% yoy), forming 59% and 63% of our full-year forecasts respectively. On a hoh basis, revenue rose 26% while PATMI increased 57%, supported by higher ASPs and record sales volume. Gross margin improved to 25.2% (1H25: 24.6%), although profitability was partly weighed down by a Rmb48.6m forex loss and higher R&D expenses.
Sales volume at record high. 1H26 sales volume rose 9% yoy to a record 119,959 tonnes, reaching 54% of 2025’s full-year volume and putting Sunsine on track to surpass last year’s record. Growth was led by accelerators (+12% yoy) and insoluble sulphur (+17% yoy), while antioxidant volumes were broadly stable. International volumes grew a stronger 17% yoy, supported by higher orders from Chinese tyre manufacturers with overseas operations and global tyre makers, compared with 4% growth in domestic volumes.
Higher interim dividend; final payout to support 2026 policy. Sunsine declared a S$0.01/share special interim dividend for 1H26, double that in 1H25. This implies an interim payout ratio of approximately 20% of 1H26 earnings. With its 40% payout commitment for 2025-26, we expect the final dividend to make up the balance based on full-year earnings.
HOLD (Maintained)
Current price:
Target price:
Upside:
Previous TP :
S$0.66
S$0.71
+7.6%
S$0.70
Analyst
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at the following link: this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
Related articles
12 Aug 2026
Beng Kuang Marine (BKM SP): 1H26: Results In Line; Expect Higher Service Demand In 2H26
26 Aug 2026
Huationg Global (HUAGL SP): 1H26: Margin Pressure Expected To Ease; Recovery Ahead
7 Sept 2026
Soon Hock Enterprise (SHOCK SP): 1H26: Robust Development Pipeline Supports Growth
Our latest research
7 Sept 2026
Soon Hock Enterprise (SHOCK SP): 1H26: Robust Development Pipeline Supports Growth
3 Sept 2026
Keppel DC REIT (KDCREIT SP): Building Scale In Hyperscale DCs
2 Sept 2026