Tear Sheet: Chang Chun Group

and Chang Chun Plastics Co. Ltd. face subdued demand and sluggish price growth in 2024 amid muted macro growth. Regional capacity additions will constrain product spreads for chemical sector over 2023-2024. The weaker operating environment in the first nine months of 2023 could slash the group?s 2023 revenue by 28%, compared with our previous forecast of 20%, with only a more moderate sales recovery of 5%-10% in 2024. Weak product prices will continue to subdue profitability for crude oil-based chemical companies. However, Chang Chun group's improving portfolio mix could sustain its margins and reduce exposure to high price volatility for commodity chemicals. Significant expansion in specialty chemicals for auto, industrial, medical, electronics, and semiconductor manufacturing underpins the group's improving portfolio

...Foreign currency issuer credit rating ###+/Stable/-- Local currency issuer credit rating ###+/Stable/-- Business risk Satisfactory Country risk Moderately High Industry risk Intermediate Competitive position Satisfactory Financial risk Modest Cash flow/leverage Modest Anchor ###+ Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Neutral (no impact) Liquidity Strong (no impact) Management and governance Satisfactory (no impact) Comparable rating analysis Positive (+1 notch) Stand-alone credit profile a-...

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