The key near-term trigger for Sumitomo Chemical is the manufacturing of technical grade active ingredients for its parent company
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
After a one-way market rally for one-and-a-half years, market participants are turning cautious in view of the macro risk factors related to the reversal of liquidity, inflation, and the threat of another COVID wave. A time like this warrants separating the wheat from the chaff in the equity world, in terms of differentiated business models, product range and management quality. In the field of chemicals/agrochem, other differentiating factors are the focus on new products, which are functionally improved and environmentally less…
