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

Disclaimer

Ebeling Heffernan (EH) distributes research and other information purchased and compiled from outside sources and analysts. This

report/release/advertisement is a commercial advertisement and is for general information purposes only. Do not base any investment decision

on information in this report/release/advertisement. EH is not a registered Investment Advisor or a member of any association for other

research providers. Under no circumstances is this report/release/advertisement to be used or considered as an offer to sell or a solicitation of

any offer to buy any security or other debt instruments, or any options, futures or other derivatives related to such securities herein. All

information herein is not intended to be used for investment advice. Price Targets are academic theory and should not be relied upon. The

majority of these profiled companies are highly risky OTC Bulletin Board or Pink Sheet companies. All readers of this information indemnify EH

from any liability for all accessed information. EH will not be responsible for updating any of its information in its report/release/advertisements.

EH advises recipients of all such data to be validated from the issuing company including all statistical information derived from SEC filings, from

data sources or financial information and data from the issuing company contained herein. The reader should seek professional financial advice,

verify all claims and do his/her own research and due diligence before investing in any securities mentioned. EH will not be liable to any person

or entity for the quality, accuracy, completeness, reliability or timeliness of information in this report/release/advertisement, or for any

direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information, products or services from any

person or entity including but not limited to lost profits, loss of opportunities, trading losses, and damages that may result from any

incompleteness or inaccuracy in any of EH’s profiled companies. When paid in stock, EH its affiliates, directors, officers, outside sources, investor

awareness groups and employees may liquidate shares at any time or hold for investment purposes. Readers are advised to review SEC periodic

reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D, www.sec.gov.nasd.com, www.pinksheets.com, www.sec.gov

and www.finra.com. SPC is compliant with the Can Spam Act of 2003. Investing in micro cap and small cap securities is speculative and carries a

high degree of risk. Investors can lose their entire investment. The Private Securities Litigation Reform Act of 1995 provides investors a 'safe

harbor' in regard to forward-looking statements. EH cautions all investors that such forward-looking statements in this

report/release/advertisement are not guarantees of future performance. Investors should understand that statements regarding future

prospects may not be realized. This report/release/advertisement does not have regard to the specific investment objective, financial situation,

suitability, and the particular need of any specific person who may receive this report/release/advertisement. Investors should note that income

from such securities, if any, may fluctuate and that each security's price or value may rise or fall substantially. Accordingly, investors may receive

back less than originally invested, or lose their entire investment. Past performance is not indicative of future performance. The Company has

not paid compensation for this commercial advertisement. HCM. has written this commercial advertisement for EH.