China BlueChemical (3983) AI Stock Analysis

• Market Cap: HK$11.89B
• Dividend Yield: 5.44%
• Average Volume (3M): 5.27M
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.57
• Revenue Growth: -8.24%
• EPS Growth: -24.53%
• Country: HK
• Employees: 3,653
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 0.15
• Shares Outstanding: 1,796,000,100
• 10 Day Avg. Volume: 5,961,174
• 30 Day Avg. Volume: 5,270,130
• PEG Ratio: -0.16
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 10.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.76
• Revenue Forecast (FY): HK$93.13B

• Rating: 69 Neutral
• Price Target: HK$3.00 ▲(20.00% Upside)

The overall stock score of 69 reflects a balance between the company's strong technical indicators and reasonable valuation, offset by financial performance challenges. The stock's bullish momentum and attractive dividend yield are significant positives, while declining profitability and cash flow concerns weigh on the score.

China BlueChemical Business Overview & Revenue Model

Company Description

China BlueChemical Ltd., together with its subsidiaries, develops, manufactures, and sells mineral fertilizers and chemical products in the People's Republic of China and internationally. The company operates through Urea, Phosphorus and Compound Fertiliser, Methanol, and Others segments. It offers urea; mono-ammonium phosphate, di-ammonium phosphate, and compound fertilizers; methanol; and bulk blending fertilizers, and polyformaldehyde and woven plastic bags. The company is also involved in the trading of fertilizers and chemicals; mining, processing, manufacturing, and selling of phosphate; port operations; and provision of preparatory work for methanol and dimethyl-ether projects. In addition, it offers transportation and overseas shipping services; and manufactures and sells acrylonitrile and methyl methacrylate. The company was formerly known as CNOOC Chemical Limited and changed its name to China BlueChemical Ltd. in April 2006. The company was founded in 2000 and is headquartered in Beijing, the People's Republic of China. China BlueChemical Ltd. is a subsidiary of China National Offshore Oil Corporation.

How the Company Makes Money

China BlueChemical generates revenue primarily through the sale of its chemical products, especially urea and other fertilizers, which are essential for agricultural productivity. The company's revenue model is based on both domestic and international sales, leveraging China's significant agricultural market and exporting to various countries. Key revenue streams include direct sales to agricultural distributors, contracts with large agricultural enterprises, and partnerships with government initiatives aimed at boosting agricultural output. Additionally, fluctuations in raw material costs, such as natural gas and coal, play a crucial role in the company's profitability, as they directly impact production costs. The company also benefits from strategic partnerships with agricultural organizations and research institutions that enhance its product offerings and market reach.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.79B	11.95B	12.99B	14.28B	13.40B	10.42B
Gross Profit	1.55B	1.70B	2.06B	2.54B	2.94B	1.33B
EBITDA	1.33B	1.55B	3.33B	2.35B	2.76B	1.32B
Net Income	1.03B	1.07B	2.38B	1.64B	1.50B	745.49M
Balance Sheet
Total Assets	24.57B	24.08B	24.32B	23.50B	21.43B	20.75B
Cash, Cash Equivalents and Short-Term Investments	13.69B	13.51B	13.74B	12.55B	11.23B	10.17B
Total Debt	2.34B	2.12B	2.02B	2.08B	1.05B	1.98B
Total Liabilities	5.00B	4.57B	4.91B	5.72B	4.52B	5.12B
Stockholders Equity	18.49B	18.41B	18.30B	16.75B	15.83B	14.70B
Cash Flow
Free Cash Flow	238.05M	918.02M	800.48M	806.70M	1.88B	890.36M
Operating Cash Flow	638.95M	1.52B	1.54B	2.14B	2.94B	1.26B
Investing Cash Flow	-505.34M	-379.00M	-691.13M	-2.35B	-3.66B	1.11B
Financing Cash Flow	-172.77M	-1.06B	-784.06M	56.35M	-1.37B	-415.86M

China BlueChemical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3983, the sentiment is Positive. The current price of 2.5 is above the 20-day moving average (MA) of 2.45, above the 50-day MA of 2.48, and above the 200-day MA of 2.20, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 62.43 is Neutral, neither overbought nor oversold. The STOCH value of 83.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3983.

China BlueChemical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1866	76 Outperform	HK$12.90B	8.25	15.41%	3.23%	0.82%	2.99%
0297	71 Outperform	HK$10.68B	8.91	10.34%	3.66%	-0.34%	64.10%
3983	69 Neutral	HK$11.89B	10.76	5.60%	5.44%	-8.24%	-24.53%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3318	49 Neutral	HK$1.79B	-48.68	-1.08%	―	-23.46%	-126.64%
1053	47 Neutral	HK$13.94B	-4.64	-12.42%	―	-14.20%	8.19%
8189	37 Underperform	HK$672.18M	-18.53	-44.61%	―	-5.79%	-129.73%