China Sunsine Chemical Holdings Ltd. · SGX:QES
China Sunsine Chemical — H1 2024 Earnings Presentation
46 slides from China Sunsine Chemical's earnings presentation, Aug 14, 2024
Slide 1: 1H2024 Results Briefing
1H2024 Results Briefing 14 August 2024 CHINA SUNSINE CHEMICAL HOLDINGS LTD. 中国尚舜化工控股有限公司 1
Slide 2: Disclaimer
Disclaimer 2 The information included in this presentation is being provided for information purposes only and does not constitute an offer to sell, or a solicitation of an offer to purchase, securities of CHINA SUNSINE CHEMICAL HOLDINGS LTD. (“CHINA SUNSINE”). This presentation contains certain for
Slide 3: Presentation Outline
3 PRESENTATION OUTLINE Our Company Financial Overview Key Developments Industry Info and Outlook
Slide 4: Our Company
4 Our Company
Slide 5: About CHINA SUNSINE
About CHINA SUNSINE 5 ✔ China’s largest rubber chemicals producer ✔ World’s largest producer of Rubber Accelerators ✔ One of China’s largest producers of Insoluble Sulphur ✔ A sizable anti-oxidants producer ✔ Superior product quality and comprehensive product range ✔ Accredited by a strong customer
Slide 6: Our Products: Rubber Chemicals
Our Products: Rubber Chemicals 6 Rubber Chemicals are Essential Additives in the production of rubber products
Slide 7: Our Products - Rubber Chemicals
Our Products - Rubber Chemicals 7 Rubber Accelerators Insoluble Sulphur Anti-Oxidants MBT/MBTS/CBS/TBBS/TMTD (IS) TMQ /HTMQ DPG/DCBS …. 6PPD 4010NA
Slide 8: Rubber/ Rubber Chemicals Consumption
Rubber/ Rubber Chemicals Consumption 8 Global Rubber Consumption by Applications Anti-oxidants Industrial Others 2% 2.2% 8% Vulcanizing Footwear agents 2.0% 7% Accelerators 1.7% Non-tire automotive 13% Tyre Rubber 70% www.fortunebusinessinsights.com • By volume, rubber chemicals compose around 6% of
Slide 9: Our Strong Customer Base
Our Strong Customer Base 9 (2006) (1997) (2003) (2006) • Over 1,000 customers globally • Serves more than 3/4 of the global top 75 tyre makers (including prominent players : Bridgestone, Goodyear, Michelin etc.) • Over 40% output exported
Slide 10: Global Largest Accelerators Producer
Global Largest Accelerators Producer 10 Group’s market share of accelerators 40% 36% 35% 33%33% 33% 34% 33% 35% 29%30% 30% 31% PRC * 30% 28% 24% 24% 25% 24% 22% 23% 25% 22% 19% 20%20%20% Global* (Est.) 20% 16% 17% 17% 18% 14% 15% 11% 12% 12% 10% 7% 5% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 11: Our Market Leadership Position
Our Market Leadership Position 11 GLOBAL TOP 3 PRC TOP 3 ACCELERATOR PRODUCERS INSOLUBLE SULPHUR PRODUCERS Annual Annual Company Company Capacity 2024 Capacity 2024 China Sunsine 117,000 tonnes Yanggu Huatai 80,000 tonnes 中国尚舜 阳谷华泰 Tianjin Kemai 70,000 tonnes China Sunsine 60,000 tonnes 天津科迈 中国尚舜 Ya
Slide 12: Our Production Bases
Our Production Bases 12 5 production bases in 3 cities Weifang Plant Shanxian • RA: 27,500-tonne • HQ base: - RA: 59,500-tonne - IS: 10,000-tonne - AO: 45,000-tonne • Hengshun New Materials: - IS: Phase I 30,000-tonne Phase II 30,000-tonne (by end of 2024) - MBT: Phase I 20,000-tonne (by 2H2024) • Y
Slide 13: Financial Overview
13 Financial Overview
Slide 14: Financial Highlights
Financial Highlights 14 RMB ’mln First Half Year Ended 30/06/24 30/06/23 Change Group Revenue 1,749.1 1,729.1 1% Gross Profit 433.6 412.0 5% Gross Profit Margin 24.8% 23.8% 1 pt Profit Before Tax 268.1 236.1 14% Profit After Tax 188.8 194.6 (3%) EPS 19.71/ 20.17/ (2%) (RMB cents/SGD cents*) 3.73 3.8
Slide 15: Revenue Growth
Revenue Growth 15 RMB ’mln 4,000.0 3,725.2 3,825.0 3,490.4 3,500.0 3,283.3 3,000.0 2,738.4 2,691.7 2,500.0 2,333.7 2,077.3 2,036.9 2,000.0 1,859.1 1,749.1 1,695.9 1,500.0 1,000.0 500.0 0.0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 1H24
Slide 16: Revenue (half-yearly)
Revenue (half-yearly) 16 RMB ’mln 2,500.0 1967.7 2,022.5 1761.3 2,000.0 1802.5 1,737.5 1,757.5 1,729.1 1,749.1 1507.7 1545.7 1,500.0 1,413.6 1H24 vs 1H23: +1% 1,230.7 1278.0 1291.1 1H24 vs 2H23: -1 % 1100.7 1,042.6 1,000.0 936.2 500.0 0.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 • 1H24 vs 1H23 r
Slide 17: Rubber Chemical Sales By Region
Rubber Chemical Sales By Region 17 Region 1H2024 FY2023 FY2022 China Rest of Asia China 56% 60% 62% 56% 34% Rest of Asia 34% 29% 27% 27% Europe 5% 6% 8% US 3% 2% 2% 2% Europe 5% Others 8% 2% 3% 1% US 3% Total 100% 100% 100% Others 2% • Domestic sales decreased while international sales increased, du
Slide 18: Rubber Chemical Sales By Products
Rubber Chemical Sales By Products 18 IS 8% Product 1H2024 FY2023 FY2022 Accelerators Accelerators 60% 57% 54% 57% IS 7% 8% 8% 27% Anti- oxidants Anti-oxidants 32% 35% 37% 35% Others 2% 1% 1% 1% 8% Others 1% Total 100% 100% 100%
Slide 19: Overall Average Selling Price (ASP)
Overall Average Selling Price (ASP) 19 RMB/Tonne 25,000 21.5K 20.2K 20,000 19.3K 19.1K 19.4K 18.8K 17.4K 16.7K 16.4K 16.2K 16.0K 17.2K 15,000 15.0K 13.6K 10,000 5,000 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 1H24
Slide 20: ASP vs Major Raw Material Price (half-yearly)
ASP vs Major Raw Material Price (half-yearly) 20 RMB/Tonne 25,000 23.3K 22.0K 20.5K 20,000 19.9K 18.6K 18.8K 18.5K 18.1K 17.1K 15.4K 17.2K 16.2K16.4K ASP 14.3K 14.9K 1H24 vs 1H23: - 4% 15,000 13.6K13.6K ASP 1H24 vs 2H23: + 1% 10.2K 10.2K 9.7K 9.9K 9.9K10.1K 10.1K 10,000 8.4K 9.0K 7.1K Aniline 6.2K 6
Slide 21: Sales Volume
Sales Volume 21 Historical Tonnes high 240,000 206,996 200,000 195,405 186,153 167,455 169,876 160,000 151,486 135,791 140,476 120,000 108,973 114,572 105,464 98,345 80,000 40,000 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 1H24
Slide 22: Sales Volume (half-yearly)
Sales Volume (half-yearly) 22 Tonnes 115,000 107,248 110,000 105,464 105,000 102,243 99,748 100,000 95,731 95,000 93,556 93,162 90,422 90,000 85,377 85,000 82,078 1H24 vs 1H23 : +6% 80,000 77,123 76,320 1H24 vs 2H23 : - 2% 72,872 74,364 75,000 71,257 70,000 67,604 64,534 65,000 60,000 55,000 50,000
Slide 23: Sales Volume by Products
Sales Volume by Products 23 Tonnes 60,000 52,636 46,789 32,457 40,000 32,755 19,906 19,247 20,000 0 1H23 1H24 Accelerators Insoluble Sulphure Anti-oxidants Others 1H2023 1H023 1H2024 1H2024 Effective Capacity Utilisation Rate Effective Capacity Utilisation Rate Accelerators 58,500 80% 58,500 90% Ins
Slide 24: Gross Profit
Gross Profit 24 RMB ’mln 1400.0 1200.0 1125.9 1163.9 1046.5 1000.0 788.1 780.8 798.9 800.0 567.4 600.3 600.0 547.1 492.0 433.6 400.0 308.0 200.0 0.0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 1H24
Slide 25: Gross Profit (half-yearly)
Gross Profit (half-yearly) 25 RMB ’mln 800.0 694.0 700.0 622.4 600.0 552.3 503.4 488.0 494.2 1H24 vs 1H23: + 5% 500.0 461 469.9 412.0 433.6 1H24 vs 2H23: + 12% 400.0 358.4 386.9 305.1 327.1 292.8 300.0 242.0 241.9 200.0 100.0 0.0 2016 2017 2018 219 2020 2021 2022 2023 2024
Slide 26: Net Profit
Net Profit 26 RMB ’mln 700 641.3 642.4 600 506.3 500 388.9 372.4 400 341.3 300 220.2 221.7 218.8 195.2 188.8 200 100 76.7 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 1H24
Slide 27: Net Profit (half-yearly)
Net Profit (half-yearly) 27 RMB ’mln 450.0 427.5 400.0 341.2 Profit Before Tax 350.0 (PBT) 300.0 266.0 268.1 265.2 252 241.1 Net Profit (PAT) 250.0 236.1 209.6 214.9 217.1 1H24 vs 1H23: - 3% 200.0 1H24 vs 2H23: + 6% 139.1 131.7 136.4 188.8 150.0 123 194.6 177.8 100.0 82.6 82.4 50.0 0.0 2016 2017 201
Slide 28: Margins Analysis
Margins Analysis 28 40.0% 34.3% 35.0% 30.4% 30.0% 28.8% 29.0% 28.1% 27.3% 26.5% 26.9% 25.0% 25.7% 24.8% Gross Profit Margin 25.0% 22.9% (GPM) 18.2% 19.5% Net Profit Margin 20.0% 17.2% 16.8% (NPM) 15.0% 12.5% 14.4% 13.6% 10.9% 10.6% 10.5% 9.4% 10.7% 10.8% 10.0% 8.5% 4.5% 5.0% 2.3% 0.0% FY11 FY12 FY13
Slide 29: Margins Analysis (half-yearly)
Margins Analysis (half-yearly) 29 40.0% 35.8% 34.5% 34.3% 35.0% 32.6% 30.6% 31.4% 30.0% 27.7%26.6% 27.8% 25.8% 25.1% 26.1% 23.8% 24.8% 25.0% 22.4% 23.2% 22.9% 22.0% Gross Profit Margin 21.1% (GPM) 20.0% 18.8% 16.3% 15.1% Net Profit Margin 13.9% (NPM) 15.0% 12.6% 12.3% 10.7% 10.6% 11.9% 11.3% 10.8% 8
Slide 30: Balance Sheet Highlight
Balance Sheet Highlight 30 30/6/2024 31/12/2023 31/12/2022 Current Assets (RMB’mln) * 3,326.6 3,314.8 3,149.8 Current Liabilities (RMB’mln) 415.7 459.2 532.7 Current Ratio 8.00 7.22 5.91 Shareholders’ Equity (RMB’mln) 3,978.5 3,926.6 3,691.8 D/E ratio 0 0 0 ROE 5%(half year) 9% 17% NAV per share (RM
Slide 31: Key Developments
31 Key Developments
Slide 32: Expansion Projects in Progress
Expansion Projects in Progress 32 Project Schedule CapEx Notes 60,000-tonne Insoluble Sulphur • Adopts continuous production method, the highest standard of production technology, which To be was developed in-house Phase 2 of 30,000-tonne capacity • Awarded “First Prize of completed by RMB 100 mln e
Slide 33: Annual Capacity
Annual Capacity 33 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Rubber Accelerators 87,000 97,000 117,000 117,000 117,000 117,000 117,000 Insoluble Sulphur 30,000 30,000 30,000 30,000 60,000 60,000 60,000 Anti-oxidants (TMQ & 6PPD) 45,000 45,000 45,000 45,000 77,000 77,000 77,000 Total 162,000 172,000 192,000
Slide 34: Industry Info and Outlook
34 Industry Info and Outlook
Slide 35: PRC New Car Sales
PRC New Car Sales 35 in million units 35 20.0% 30.1 30 28.9 28.1 28 15.0% 26.3 26.9 25.8 25.3 24.6 25 23.5 22 10.0% 20 5.0% Total Car Sales 15 14.1 NEV Sales 0.0% Car Sales yoy growth 10 5 -5.0% 0 -10.0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1H2024 Source: China Association of Autom
Slide 36: PRC Vehicle Population
PRC Vehicle Population 36 PRC Motor Vehicle & Car Population In mln units 500 450 417 435 395 400 372 348 336 350 310 327 319 290 302 300 264 279 281 250 260 240 250 217 194 200 154 172 137 150 100 50 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Car Population Motor Vehicle Poluation Sou
Slide 37: Global Car Population
Global Car Population 37 Car ownership per 1000 people in global major auto markets in 2022 In units 900 837 800 759 731 684 700 639637 612 600 500 472 461 400 363 329 300 269 226 223 219 200 101 100 29 0 Automotive Tire Market - Size & Share - Automobile Industry Report Source: www.163.com (mordori
Slide 38: Tyre Industry Info
Tyre Industry Info 38 PRC Vehicle Tyre Production in million units % The global tyre market reached a total of 2,388 1200 1,114 20 965 925 947 926 988 million units in 2023. Looking ahead, it is 1000 832 892 899 856 15 816 842 818 expected to grow further, reaching 800 10 600 526 5 approximately 3,0
Slide 39: Operating Environment & Industry Outlook
Operating Environment & Industry Outlook 39 • Greater challenges and uncertainties in the macro-economic environment, such as high interest rate, the Ukraine-Russia conflict, conflict in Gaza and rising geopolitical tensions between the US and China etc. • Intensified market competition, resulting f
Slide 40: Group’s Strategy
Group’s Strategy 40 Production and Sales Equilibrium Higher production leads to higher sales volume, which in turn stimulates even higher production • Our goal - Increase market share and strengthen our market leadership position • Expanding capacity to meet the increased demand for our products • I
Slide 41: Competitive Strengths
Competitive Strengths 41 - World largest accelerators and one of the China’s biggest IS producers Market Leadership - Our accelerator products capture 35% of PRC market and 23% of global market - Listed in the first batch of “National Champion Manufacturing Enterprise” - Full range of essential rubb
Slide 42: Listed On SGX Mainboard
Listed On SGX Mainboard 42 SHARE PERFORMANCE • Since IPO, no new share placement and rights issue
Slide 43: Dividend Payment History
Dividend Payment History 43 1: 2 share Net Profit split in Nov Dividend (in RMB ’mln) 2019 (in SGD cents) 700 641.3 642.4 6 5.5 5.5 600 5 506.3 500 4.5 4 388.9 372.4 3.5 400 341.3 3 3 3 Net Profit 300 2.52.5 Dividend 220.2 221.7 218.8 195.2 2 2 200 76.1 106.7 88.3 115.3 99.4 1.5 76.7 1.5 1.5 1.5 100
Slide 44: Investment Merits
Investment Merits 44 ✔ Leading market position with largest share in rubber accelerators ✔ Strong customer base ✔ Strong corporate governance & transparency ✔ Capable and reliable management team ✔ Ongoing capacity expansion aimed to grow sales volume and market share ✔ Solid cash position (cash per
Slide 45: Chairman’s Message
Chairman’s Message 45 “I am glad that the Group achieved a satisfactory set of results for 1H2024 in such a challenging and uncertain market. The global economy continues to face challenges and uncertainties, while locally raw material prices are moderating, production utilisation rates of tyre manu
Slide 46: Q&A Media/Investor Contact
46 Q&A MEDIA/INVESTOR CONTACT Tong Yiping, CFO, tongyiping@ChinaSunsine.com Jennie Liu, IR Manager, jennie@ChinaSunsine.com 16 Raffles Quay #15-08 Hong Leong Building, Singapore 048581 Tel:(65) 6220 6686 www.ChinaSunsine.com
China Sunsine Chemical Holdings — H1 2024 Earnings Presentation on 6ix