Broker Name: CGS International Securities
Date of Report: November 27, 2025
Excerpt from CGS International Securities report.
Report Summary
- China Sunsine Chemical Holdings (CSSC) is a leading global producer of specialty rubber chemicals, supplying over 75% of the world’s top 75 tire makers and holding about 23% of the global rubber accelerator market.
- CSSC’s competitive edge comes from high entry barriers, deep customer relationships, cost efficiency through automation, and robust environmental compliance.
- The company expects stronger performance in 2026 as new capacities at Shanxian and Weifang come online, with further support from China’s growing EV and replacement tire markets.
- Despite ongoing price competition in the industry, CSSC’s integrated operations and automation allow it to operate efficiently and potentially benefit from industry consolidation as weaker competitors exit.
- CSSC has formalized a dividend policy committing to pay at least 40% of net profit as dividends for FY25F and FY26F, supported by a strong net cash position.
- Recent expansions include new MBT and insoluble sulphur production lines, further driving internal cost savings and capacity growth.
- 3Q25 results were hurt by lower average selling prices, but management remains optimistic due to flexible pricing strategies and anticipated volume growth from government stimulus and industry trends.
Above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International Securities website: https://www.cgs-cimb.com/
