China Sunsine Chemical Holdings: EPS Surges, Dividend Holds Steady

China Sunsine Chemical Holdings Ltd. (SGX:QES) has reported its full-year 2024 earnings, with earnings per share (EPS) beating analyst expectations. Despite a decline in net profit, the company maintained its dividend payout, indicating a commitment to shareholder returns. Let's dive into the key takeaways from the earnings report.



EPS Surges Despite Net Profit Decline

China Sunsine Chemical Holdings reported EPS of CNY 0.39 for the full year 2024, surpassing analyst estimates by 17%. Although the company's net profit declined by 42% year-over-year (YoY) to CNY 372.4 million, the strong EPS performance suggests that the company has been able to manage its expenses and maintain profitability.

Dividend Payout Holds Steady

Despite the decline in net profit, China Sunsine Chemical Holdings maintained its dividend payout, proposing a final dividend of 1.5 SG cents and a special dividend of 1.0 SG cent. This brings the total dividend payout for the year to 2.5 SG cents, which is in line with the company's commitment to shareholder returns.



Looking Ahead: Revenue Growth and Gross Profit Margin Pressure

Analysts at CGS-CIMB expect China Sunsine Chemical Holdings' revenue to grow at an average of 4.9% p.a. during the next 2 years, compared to a 11% growth forecast for the Chemicals industry in Asia. However, they also anticipate that the company's gross profit margin may remain under pressure due to intense domestic competition.

In conclusion, China Sunsine Chemical Holdings' EPS surged in the full year 2024, driven by strong expense management and profitability. The company maintained its dividend payout, demonstrating a commitment to shareholder returns. However, analysts expect revenue growth to be offset by pressure on the company's gross profit margin due to intense competition. As investors, we should monitor the company's progress in managing its expenses and maintaining its profitability in the face of competitive pressures.