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China BlueChemical Ltd Class H (HK:3983)
:3983
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China BlueChemical (3983) AI Stock Analysis

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HK:3983

China BlueChemical

(OTC:3983)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
HK$3.00
▲(29.31% Upside)
The stock's overall score is driven primarily by its strong technical indicators and attractive valuation. Despite financial performance challenges, particularly in revenue and cash flow, the company's robust balance sheet and low leverage provide a solid foundation. The stock's upward momentum and undervaluation relative to peers make it appealing, although overbought conditions suggest caution in the short term.

China BlueChemical (3983) vs. iShares MSCI Hong Kong ETF (EWH)

China BlueChemical Business Overview & Revenue Model

Company DescriptionChina BlueChemical Ltd. (3983) is a leading chemical company based in China, specializing in the production and sale of urea, methanol, and other chemical fertilizers. It operates primarily in the chemical fertilizer and methanol sectors, providing essential agricultural products and industrial chemicals that support both farming and industrial activities. The company is known for its robust production capacity and commitment to sustainability in its operations.
How the Company Makes MoneyChina BlueChemical makes money through the manufacturing and sales of chemical fertilizers and methanol. Its primary revenue streams include the sale of urea and methanol, which are essential for agricultural productivity and industrial processes, respectively. The company leverages its extensive production facilities and distribution networks to supply these products domestically and internationally. Additionally, China BlueChemical benefits from strategic partnerships and collaborations that enhance its market presence and operational efficiency, contributing to its overall earnings.

China BlueChemical Financial Statement Overview

Summary
China BlueChemical faces challenges with declining revenue and profitability margins, despite maintaining a strong balance sheet with low leverage. The cash flow situation highlights potential liquidity concerns and operational challenges. Overall, the company shows resilience in its capital structure but needs to address profitability and cash flow generation.
Income Statement
65
Positive
The company has shown a declining revenue trend with a revenue decrease of approximately 8% from 2022 to 2023 and a further decrease in 2024. Gross profit margin and net profit margin have decreased, indicating pressure on profitability. The EBIT and EBITDA margins have also declined, reflecting challenges in maintaining operational efficiency.
Balance Sheet
75
Positive
The company's balance sheet is robust with a low debt-to-equity ratio, indicating conservative leverage. The equity ratio remains strong, showcasing a solid capital structure. However, the return on equity has decreased, pointing to challenges in generating returns for shareholders.
Cash Flow
55
Neutral
Cash flow from operations has seen a decline, impacting free cash flow. The absence of operating cash flow in 2024 raises concerns. The free cash flow to net income ratio is unavailable due to missing data, but prior trends indicate challenges in cash generation relative to net income.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.95B12.99B14.28B13.40B10.42B
Gross Profit1.70B2.06B2.54B2.94B1.33B
EBITDA1.55B3.33B2.35B2.76B1.32B
Net Income1.07B2.38B1.64B1.50B745.49M
Balance Sheet
Total Assets24.08B24.32B23.50B21.43B20.75B
Cash, Cash Equivalents and Short-Term Investments13.51B13.74B13.03B11.46B10.17B
Total Debt2.12B2.02B2.08B1.05B1.98B
Total Liabilities4.57B4.91B5.72B4.52B5.12B
Stockholders Equity18.41B18.30B16.75B15.83B14.70B
Cash Flow
Free Cash Flow918.02M800.48M806.70M1.88B890.36M
Operating Cash Flow1.52B1.54B2.14B2.94B1.26B
Investing Cash Flow-379.00M-691.13M-2.35B-3.66B1.11B
Financing Cash Flow-1.06B-784.06M65.37M-1.37B-415.86M

China BlueChemical Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.32
Price Trends
50DMA
2.30
Positive
100DMA
2.13
Positive
200DMA
2.02
Positive
Market Momentum
MACD
0.02
Positive
RSI
43.49
Neutral
STOCH
18.75
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3983, the sentiment is Neutral. The current price of 2.32 is below the 20-day moving average (MA) of 2.40, above the 50-day MA of 2.30, and above the 200-day MA of 2.02, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 43.49 is Neutral, neither overbought nor oversold. The STOCH value of 18.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3983.

China BlueChemical Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$9.37B5.9916.29%3.76%0.82%2.99%
73
Outperform
HK$9.48B7.9210.19%4.15%-0.34%64.10%
73
Outperform
$10.70B9.685.60%5.67%-8.24%-24.53%
53
Neutral
HK$2.13B-57.770.59%-23.46%-126.64%
42
Neutral
HK$13.85B-4.06-24.68%-51.76%
38
Underperform
HK$896.24M-24.71-125.52%-5.79%-129.73%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3983
China BlueChemical
2.32
0.35
17.59%
HK:0297
Sinofert Holdings
1.35
0.25
22.84%
HK:1866
China XLX Fertiliser Ltd.
7.30
3.43
88.63%
HK:3318
China Boton Group Co., Ltd.
1.97
-0.03
-1.50%
HK:1053
Chongqing Iron & Steel Co., Ltd. Class H
1.31
0.49
59.76%
HK:8189
Tianjin TEDA Biomedical Engineering Co. Ltd. Class H
0.42
0.25
147.06%

China BlueChemical Corporate Events

China BlueChemical Schedules Board Meeting to Review Interim Results
Aug 4, 2025

China BlueChemical Ltd. has announced a board meeting scheduled for August 18-19, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the upcoming months.

China BlueChemical Announces EGM to Amend Governance Structure
Jul 3, 2025

China BlueChemical Ltd. has announced an extraordinary general meeting (EGM) scheduled for August 18, 2025, to discuss significant changes in its corporate governance structure. The meeting will focus on amending the company’s articles of association and the cancellation of its supervisory committee, which may impact the company’s operational framework and governance.

China BlueChemical Engages in Significant Structured Deposit Transactions
Jun 10, 2025

China BlueChemical has entered into a series of structured deposit agreements with the Bank of China (BOC) Hainan Branch, totaling RMB850 million. These transactions, which involve self-owned funds, are classified as discloseable under Hong Kong Listing Rules due to their aggregated transaction amounts exceeding 5% of applicable percentage ratios. This strategic financial maneuver is expected to enhance the company’s liquidity management while adhering to regulatory requirements.

China BlueChemical Engages in Discloseable Structured Deposit Transactions
Jun 3, 2025

China BlueChemical, a joint stock limited company incorporated in China, has entered into two structured deposit agreements with ICBC Hainan Branch, subscribing to products worth RMB400 million and RMB300 million respectively. These transactions, which involve self-owned funds, are classified as discloseable under Hong Kong Listing Rules due to the aggregated transaction amounts exceeding certain percentage thresholds, necessitating notification and announcement but not shareholder approval.

China BlueChemical Announces AGM Results and Leadership Changes
May 29, 2025

China BlueChemical Ltd. held its 2024 Annual General Meeting (AGM) along with class meetings for H Shareholders and Domestic Shareholders, where key resolutions were approved, including the distribution of final dividends and the appointment of new directors. The AGM saw a significant turnout with 74.73% of shares represented, highlighting strong shareholder engagement. The approval of budget proposals and re-appointment of auditors indicates a stable financial strategy moving forward, while the appointment of new directors suggests a strategic shift in leadership to enhance the company’s governance and operational efficiency.

China BlueChemical Announces Board of Directors and Committee Roles
May 29, 2025

China BlueChemical Ltd. has announced the composition of its Board of Directors, highlighting the roles and functions of each member. The board consists of executive, non-executive, and independent non-executive directors, with four committees established to oversee various aspects of the company’s governance. This announcement underscores the company’s commitment to structured governance and transparency, potentially impacting stakeholder confidence and operational oversight.

China BlueChemical Announces Final Dividend for 2024
May 29, 2025

China BlueChemical Ltd. has announced a final cash dividend of RMB 0.1208 per share for the financial year ending December 31, 2024, with the payment to be made in Hong Kong dollars at a rate of HKD 0.1316 per share. This announcement reflects the company’s stable financial performance and commitment to delivering shareholder value, while also detailing the withholding tax implications for non-resident enterprise shareholders.

China BlueChemical Proposes Governance Enhancements
May 29, 2025

China BlueChemical Ltd. has announced proposed amendments to its Articles of Association, aiming to enhance corporate governance and streamline operations. The key change involves the cancellation of the supervisory committee, with its functions being transferred to the audit committee of the Board. This move aligns with recent regulatory updates and reflects the company’s commitment to improving its governance structure, potentially impacting its operational efficiency and stakeholder relations.

China BlueChemical Engages in Significant Structured Deposit Transactions
May 27, 2025

China BlueChemical, through its subsidiary CNOOC Jiantao, has entered into agreements with the Bank of China Hainan Branch to subscribe to structured deposit products totaling RMB450 million. These transactions, classified as discloseable under Hong Kong Listing Rules, do not require shareholder approval but necessitate notification and announcement due to the aggregated transaction amounts exceeding 5% of applicable percentage ratios.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 26, 2025