Sunvic

Sunvic: Despite the downbeat results and outlook posted on Friday, Sunvic's share price surged 6% higher on Friday to $0.535, but still well below its NAV/share of Rmb4.30 ($0.86). Although management did not provide any fresh update on its proposed sale of its Taixing production facilities to French chemical group Arkema for Rmb3.9b, the positive share price action could be indicative that the deal may be sealed soon. The proposed sale, if it materialises, would translate to an estimated gain of Rmb1.69b or Rmb3.16 ($0.63) per share. At the current share price of $0.535, the stock is trading at a deep value to its implied post deal valuation of $1.49 per share.