Singapore-listed China Sunsine Chemical, a major producer of rubber chemicals, is holding its ground amidst pricing pressures due to declining feedstock costs. The company, which specialises in rubber accelerators, is benefiting from China’s resilient automotive market, with vehicle sales in the first quarter of 2025 up 11% year-on-year. Despite a reduction in average selling prices (ASPs) driven by lower aniline prices, Sunsine’s market leadership and production capacity provide it with a competitive edge.
The China Association of Automobile Manufacturers reported that new energy vehicle sales surged by 47% year-on-year, contributing to the overall demand for rubber accelerators, essential in tyre manufacturing. Sunsine’s strong market position is further bolstered by its significant production capacity of 117,000 tonnes annually, surpassing its closest competitors.
Whilst the ASPs for rubber accelerators have decreased by approximately 18% year-on-year, Sunsine’s flexible pricing strategy and cost efficiency have helped mitigate the impact. The company’s earnings for the first quarter of 2025 reached Rmb108 million, a 27% increase year-on-year, although revenue slightly missed expectations due to lower ASPs.
Sunsine’s financial health remains robust, with a net cash position and a dividend yield of 5.2%. The company continues to focus on maintaining a balance between sales and production to drive competitiveness. Despite revising its 2025-2027 revenue forecasts downward due to pricing pressures, Sunsine maintains a “buy” recommendation with a target price of S$0.63, reflecting confidence in its market strategy and financial stability.
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