China Sunsine

China Sunsine: CIMB visited the group's facilities over 15-18 Sep. Notes while the operations of some key competitors have been suspended due to environmental issues, Sunsine has expanded its market share and profitability, thanks to its continuous implementation of adequate environmental standards. Since IPO in 2007, Sunsine 's capacity has expanded by almost threefold , and the group is now the global leader in rubber accelerators. It boasts a diversified customer base and serves more than 60% of the top 75 global tyre makers, including Bridgestone, Michelin, Goodyear, Sumitomo, etc. As the rubber chemical industry continues to undergo structural reform, this will provide Sunsine with the opportunity to further consolidate its market share through potential M&A. CIMB believes Sunsine's recent improved profitability may warrant a relook at the stock. Says in a blue sky scenario, Sunsine could be worth up to $0.65 if pegged to the peer average of 8.9x CY15 P/E. CIMB does not have a rating on the counter.