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Analysts Report SunVic Chemical Holdings Limited Singapore AS7. Woraphop Viriyaroj has initiated a strong buy on SunVic and Shayne Heffernan has placed a $1.50 price target on the stock for 2011. SunVic Chemical Holdings Limited is an investment holding company. The principal activities of the Company and its subsidiaries are those relating to the manufacture and sale of chemical products.
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Sunvic Chemical Holdings Limited
Singapore AS7
Woraphop Viriyaroj, Corporate Account Executive
Heffernan Capital Management
Symbol SVC
Exchange SGX
Current Price 0.62SGD
52 Week High/ Low 0.7 – 0.12 SGD
Shares Outstanding 546.49
Market Cap (in $ mn) 330.62M$
P/E Ratio 5.21
Recommendation:
Sunvic rates a very strong buy in this market
Price Target $1.50 in 2011
Low P/E and Book Value
Key Developments:
• Expand to upstream and downstream
products
• Explore opportunities in strategic
investment, strategic alliances, joint
ventures and acquisitions
About the Company
SunVic Chemical Holdings Limited is an investment holding company. The principal
activities of the Company and its subsidiaries are those relating to the manufacture and sale of
chemical products.
Sunvic Chemical is a manufacturer of intermediate chemical products, such as Acrylic
Acid, Arylate Esters, as well as N-phosphonomethyl lminodiacetic Acid (PMIDA), which are
ingredients used in the production of industrial, consumer and agricultural products, such as
coatings, adhesives, diapers, textiles, detergents, water treatment materials and herbicide (weed
killer).
The Company has two segments: manufacture and sale of Acrylic Acid and Acrylate
Esters, and manufacture and sale of PMIDA. The immediate and ultimate holding company
during the year ended December 31, 2009, is Whitefield Capital INC. In May 2010, the
Company’s wholly owned subsidiaries, Yixing Yinyan Import & Export Co., Ltd. and Jiangsu
Jurong Chemical Co., Ltd., incorporated a subsidiary, Yinyan Produtos Quimicos Ltda.
Company’s Website: http://www.sunvic-chem.com
Business Overview
PRODUCTION CAPACITIES:
AA (Purified AA and glacial AA): 205,000 tonnes AE (butyl acrylate, methyl acrylate, ethyl acrylate and 2-ethylhexyl acrylate): 250,000 tonnes PMIDA (N-phosphonomethyl lminodiacetic Acid): 40,000 tonnes
News
SunVic Chemical Holdings Limited's Subsidiary Announces Incorporation Of New
Subsidiary In Argentina
Friday, 4 Jun 2010 05:45am EDT
SunVic Chemical Holdings Limited announced that the Company's wholly-owned subsidiaries, namely, Yixing Yinyan Import & Export Co., Ltd. (YYIE) and Jiangsu Jurong Chemical Co., Ltd. (JJC) (collectively, the Group), have incorporated a new wholly-owned subsidiary in the Argentine Republic (Argentina), known as Yinyan Argentina SA (the Subsidiary). The Subsidiary was duly incorporated as a limited liability company in accordance with applicable Argentina laws on May 6, 2010, with an authorised and paid up capital of ARS$50,000. The share capital will be contributed by YYIE and JJC in equal proportions, which will be funded from the Group's internal resources. The principal activities engaged by the Subsidiary are that of trading of chemical products. The incorporation of the Subsidiary is meant to expand the sales and marketing network of the Group and to facilitate its sales of products in South America.
Daily Chart
Outlook
Expand to upstream and downstream products
Our ongoing projects are:
• Invest 10% equity stake in SunVic Asia Pacific Investment Pte Ltd which owns 100% of Jiangsu Jurong Petrochemical Co., Ltd ("Jurong Petrochemical").
Jurong Petrochemical is located next to our plant. It produces propylene and other petro-related chemical products derivated from heavy oil. Propylene is our essential raw material. This investment helps us to enjoy a free-freight cost of raw material compared with buying from other suppliers. On top of that, we may also enjoy a certain discount on purchasing from a related party.
• The application for the production license of Glyphosate is on progress.
Glyphosate is a downstream product of PMIDA. We possess the technology and network advantages. Glyphosate normally commands higher margin than PMIDA.
Explore opportunities in strategic investment, strategic alliances, joint ventures and
acquisitions
Where opportunities arise, we intend to enter into strategic investments, strategic alliances, joint ventures and acquisitions that would allow us to expand our production capabilities, production range or enhance our market position.
Financial Statement
VALUATION RATIOS
Company Industry Sector S&P 500
P/E Ratio (TTM) 5.21 11.62 27.53 17.75
P/E High - Last 5 Yrs. -- 0.22 0.56 19.13
P/E Low - Last 5 Yrs. -- 0.08 0.06 4.87
Beta 1.69 1.12 1.39 1.27
Price to Sales (TTM) 0.56 0.59 2.21 2.06
Price to Book (MRQ) 1.57 1.09 2.86 2.83
Price to Tangible Book (MRQ) 1.58 1.29 3.30 7.87
Price to Cash Flow (TTM) 3.56 5.27 27.63 10.34
Price to Free Cash Flow (TTM) 29.01 9.51 7.01 47.18
% Owned Institutions -- -- -- --
DIVIDENDS
Company Industry Sector S&P 500
Dividend Yield NA 2.04 1.08 1.72
Dividend Yield - 5 Year Avg. -- 1.53 1.70 2.45
Dividend 5 Year Growth Rate -- 6.11 11.76 -6.11
Payout Ratio(TTM) 0.00 26.94 10.18 40.29
GROWTH RATES
Company Industry Sector S&P 500
Sales (MRQ) vs Qtr. 1 Yr. Ago 123.92 24.44 54.85 9.49
Sales (TTM) vs TTM 1 Yr. Ago 70.76 18.11 10.64 9.07
Sales - 5 Yr. Growth Rate 48.27 1.95 13.95 9.87
EPS (MRQ) vs Qtr. 1 Yr. Ago 3,428.45 190.22 78.96 6.53
EPS (TTM) vs TTM 1 Yr. Ago 918.69 -- -- --
EPS - 5 Yr. Growth Rate -37.61 -3.19 13.61 7.10
Capital Spending - 5 Yr. Growth Rate -6.24 -3.55 21.02 4.97
FINANCIAL STRENGTH
Company Industry Sector S&P 500
Quick Ratio (MRQ) 0.95 1.62 1.70 0.67
Current Ratio (MRQ) 1.06 2.10 2.13 1.00
LT Debt to Equity (MRQ) 29.97 43.00 23.51 117.84
Total Debt to Equity (MRQ) 122.07 57.87 40.54 171.26
Interest Coverage (TTM) -- 0.19 0.07 19.17
PROFITABILITY RATIOS
Company Industry Sector S&P 500
Gross Margin (TTM) 21.57 22.29 20.35 33.06
Gross Margin - 5 Yr. Avg. 12.80 23.33 25.68 29.43
EBITD Margin (TTM) 20.56 -- -- --
EBITD - 5 Yr. Avg 12.02 11.79 19.63 18.69
Operating Margin (TTM) 15.90 7.55 7.67 --
Operating Margin - 5 Yr. Avg. 7.74 6.75 13.83 16.26
Pre-Tax Margin (TTM) 15.03 7.36 7.66 15.05
Pre-Tax Margin - 5 Yr. Avg. 6.11 6.61 13.60 15.86
Net Profit Margin (TTM) 11.02 5.29 4.75 11.18
Net Profit Margin - 5 Yr. Avg. 5.82 4.20 9.56 11.64
Effective Tax Rate (TTM) 26.71 25.89 16.31 49.44
Effecitve Tax Rate - 5 Yr. Avg. 4.80 44.03 28.23 25.30
EFFICIENCY
Company Industry Sector S&P 500
Revenue/Employee (TTM) -- 28,750,736 49,893,793 681,363
Net Income/Employee (TTM) -- 1,476,220 -50,044,640 86,230
Receivable Turnover (TTM) 7.39 4.38 9.94 10.68
Inventory Turnover (TTM) 16.16 5.65 2.44 6.84
Asset Turnover (TTM) 1.35 0.82 0.35 0.56
MANAGEMENT EFFECTIVENESS
Company Industry Sector S&P 500
Return on Assets (TTM) 14.85 5.63 4.32 6.08
Return on Assets - 5 Yr. Avg. 9.21 3.82 9.87 5.83
Return on Investment (TTM) 30.70 7.74 5.37 7.81
Return on Investment - 5 Yr. Avg. 17.17 5.39 14.24 7.54
Return on Equity (TTM) 36.51 13.85 7.14 18.28
Return on Equity - 5 Yr. Avg. 18.65 6.93 19.02 9.46
CONTACT:
Mr. Woraphop Viriyaroj
Corporate Account Executive
Heffernan Capital Management
Email: woraphop@heffernan-inc.com
Mr Woraphop Viriyaroj passed Level 1 of the Chartered Financial Analyst (CFA) in the year 2010 and Certified Investment and Securities Analyst (CISA) Level 2 in 2010 and holds a degree in Industrial Engineering.
Price Estimate by Shayne Heffernan PhD
Shayne Heffernan of Ebeling Heffernan holds a PhD in Economics serves as CEO of Heffernan Holdings Inc and Co Founder of Ebeling Heffernan www.ebeling-heffernan.com and oversees trading at Heffernan Capital Management www.heffcap.com
Bangkok
Suite 53 Athenee Tower 63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 THAILAND
Tel: +66 2 126 8000 Fax: +66 2 126 8080
New York
347 5th Avenue, Suite 1402-508 Ny, NY 10016
Tel: +1 646-403-9881 Fax: +1 646-403-8014
Singapore
3 Raffles Place #07-01 Bharat Building Singapore 048617
Tel: +65 6329 6408Fax: +65 6329 9699
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