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Sunvic Chemical Holdings Limited Singapore AS7

Woraphop Viriyaroj, Corporate Account Executive Heffernan Capital Management


Symbol Exchange SGX Current Price 52 Week High/ Low Shares Outstanding Market Cap (in $ mn) P/E Ratio

SVC 0.62SGD 0.7 – 0.12 SGD 546.49 330.62M$ 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 petrorelated 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

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

29.01

9.51

7.01

47.18

--

--

--

--

P/E Ratio (TTM)

Price to Free Cash Flow (TTM)

% Owned Institutions


DIVIDENDS Company

Industry

Sector

S&P 500

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

0.00

26.94

10.18

40.29

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

-6.24

-3.55

21.02

4.97

Dividend Yield

Payout Ratio(TTM) GROWTH RATES

Capital Spending - 5 Yr. Growth Rate


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

29.97

43.00

23.51

117.84

122.07

57.87

40.54

171.26

--

0.19

0.07

19.17

LT Debt to Equity (MRQ)

Total Debt to Equity (MRQ)

Interest Coverage (TTM)


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

--

7.74

6.75

13.83

16.26

15.03

7.36

7.66

15.05

6.11

6.61

13.60

15.86

11.02

5.29

4.75

11.18

5.82

4.20

9.56

11.64

26.71

25.89

16.31

49.44

4.80

44.03

28.23

25.30

Operating Margin - 5 Yr. Avg.

Pre-Tax Margin (TTM)

Pre-Tax Margin - 5 Yr. Avg.

Net Profit Margin (TTM)

Net Profit Margin - 5 Yr. Avg.

Effective Tax Rate (TTM)

Effecitve Tax Rate - 5 Yr. Avg.


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

1.35

0.82

0.35

0.56

Company

Industry

Sector

S&P 500

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

Asset Turnover (TTM) MANAGEMENT EFFECTIVENESS

Return on Assets (TTM)


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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Analysts Report SunVic Chemical Holdings Limited Singapore AS7