If you have confidence still in S-Chips, I understand that China Sunsine Chemical is on track for strong profit growth. Let's track it. Today 23.5 cents, despite reporting net profit growth of 95% to RMB 22.8 million for the first quarter ended 31 March 2014.
market always has surprises. Today's surprise is the selling of 853,000 shares of China Sunsine. Who are throwing in the towel? And who are buying at 23.5 cents -- there is a resistance and ability to absorb the selling. The accelerator market in China is turning very favourable to Sunsine with ASPs gone up and local analysts noting all these in their reports -- and the 1 SZ-listed stock in this industry has shot thru the roof, I m told.
XMH's net profit for FY2014 was about flattish (after excluding provision for claim by customer). The outlook -- not so great in the Indon coal sector.
Marco Polo's first half results reflected the same situation, as greed&fear said at Valuebuddies.com: "Gross profit margin plunged from 40% to 28% and this was ascribed mainly to lower utilisation of the companies barges and tugs. The barges are primarily used for coal transportation in Indonesia. There seems to be continued weakness in the Indonesian coal sector and this should continue to negatively impact XMH's sale of ship engines to Indonesia."
5 weeks ago, I posted above on China Sunsine. it has zoomed from 23.5 cents to 28 cents. The fundamentals are stronger than ever, so the story goes regarding increases in ASP for rubber accelerators amid shortage of supply of an intermediate product. The 1st target price would be, imho, 50 cents.
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