China BlueChemical (3983) AI Stock Analysis

• Market Cap: HK$11.02B
• Dividend Yield: 5.44%
• Average Volume (3M): 4.66M
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.49
• 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: 6,400,845
• 30 Day Avg. Volume: 4,658,365
• 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

• Rating: 66 Neutral
• Price Target: HK$2.50 ▲(4.60% Upside)

China BlueChemical's stock score is primarily influenced by its financial performance and valuation. The company faces challenges with declining revenue and cash flow, but maintains a strong balance sheet. The stock's valuation is attractive with a reasonable P/E ratio and a high dividend yield. Technical analysis shows a positive short-term trend, though momentum indicators are mixed.

China BlueChemical Business Overview & Revenue Model

Company Description

China BlueChemical (3983) is a leading producer of fertilizers and chemical products in China, primarily engaged in the production and sale of urea, ammonia, and compound fertilizers. The company operates in the agricultural sector, focusing on enhancing crop yields and providing essential nutrients to farmers. With a commitment to sustainable agriculture, China BlueChemical leverages advanced technologies in its manufacturing processes and maintains a portfolio that includes both traditional and innovative fertilizer solutions.

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: 2.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2.39 is above the 20-day moving average (MA) of 2.37, above the 50-day MA of 2.38, and above the 200-day MA of 2.07, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 54.47 is Neutral, neither overbought nor oversold. The STOCH value of 64.10 is Neutral, 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	―	HK$9.34B	5.97	15.41%	3.74%	0.82%	2.99%
0297	―	HK$10.47B	8.74	10.34%	3.76%	-0.34%	64.10%
3983	―	HK$11.02B	9.97	5.60%	5.44%	-8.24%	-24.53%
Sector *	―	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3318	―	HK$1.97B	―	-1.08%	―	-23.46%	-126.64%
1053	―	HK$14.55B	―	-15.48%	―	-24.64%	-51.76%
8189	―	HK$810.88M	―	-44.61%	―	-5.79%	-129.73%

China BlueChemical Corporate Events

China BlueChemical Forms Audit Committee to Enhance Oversight

China BlueChemical Ltd. has established an Audit Committee under its Board of Directors to safeguard shareholder interests and regulate audit procedures. The committee is responsible for overseeing the company’s financial reporting, internal controls, and annual production and operation proposals. It is composed of non-executive directors, with a majority being independent, and meets quarterly to ensure compliance with relevant laws and regulations.

The most recent analyst rating on (HK:3983) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on China BlueChemical stock, see the HK:3983 Stock Forecast page.

China BlueChemical Enhances Governance with New Nomination Committee

China BlueChemical Ltd. has announced the establishment of a Nomination Committee under its Board of Directors to enhance corporate governance and safeguard shareholder interests. This committee is tasked with making recommendations on the appointment of directors and senior management, assessing board composition, and selecting candidates for directorship. The formation of this committee is expected to strengthen the company’s governance structure and ensure compliance with relevant laws and regulations, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (HK:3983) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on China BlueChemical stock, see the HK:3983 Stock Forecast page.

China BlueChemical Reports Stable Interim Financial Results for 2025

China BlueChemical reported its interim financial results for the first half of 2025, highlighting a revenue of RMB5,850 million and a gross profit of RMB848 million. The company’s profit attributable to owners was RMB641 million, with basic earnings per share at RMB0.14. Despite a slight decrease in revenue compared to the previous year, the company maintained a solid profit margin, indicating stable operational performance. The results reflect the company’s resilience in a challenging market environment, with implications for continued stakeholder confidence.

The most recent analyst rating on (HK:3983) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on China BlueChemical stock, see the HK:3983 Stock Forecast page.

China BlueChemical Enhances Governance with New Remuneration Committee

China BlueChemical Ltd. has established a Remuneration Committee under its Board of Directors to safeguard shareholder interests and enhance corporate governance. This committee is responsible for reviewing and formulating remuneration policies for directors and senior management, ensuring effective monitoring and incentive mechanisms. The committee’s structure and procedures are designed to comply with relevant laws and regulations, aiming to strengthen the company’s governance framework.

The most recent analyst rating on (HK:3983) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on China BlueChemical stock, see the HK:3983 Stock Forecast page.

China BlueChemical Restructures Governance with EGM Approval

China BlueChemical Ltd. successfully held its first extraordinary general meeting of 2025, where shareholders approved significant amendments to the company’s articles of association, including the cancellation of its supervisory committee. This decision, supported by a substantial majority of votes, reflects the company’s strategic move to streamline its governance structure, potentially enhancing operational efficiency and aligning with broader corporate governance trends.

China BlueChemical Schedules Board Meeting to Review Interim Results

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.