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China BlueChemical Class H (HK:3983)
:3983

China BlueChemical (3983) AI Stock Analysis

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HK

China BlueChemical

(OTC:3983)

Rating:73Outperform
Price Target:
HK$2.50
▲(20.19%Upside)
China BlueChemical shows a mixed outlook with strong valuation metrics and positive technical momentum, but faces challenges in financial performance due to declining revenue and profitability. Its robust balance sheet provides some stability, though liquidity concerns persist.

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 manufacturer in China, specializing in the production and distribution of chemical fertilizers, methanol, and related chemical products. The company operates in the chemical manufacturing sector and is committed to providing high-quality products that support agricultural productivity and industrial needs.
How the Company Makes MoneyChina BlueChemical generates revenue primarily through the sale of its chemical fertilizer products, which are essential for agricultural purposes, and methanol, which is widely used as a feedstock in industrial applications. The company's revenue streams are diversified across its core product lines, including urea, phosphate fertilizers, and methanol. Significant factors contributing to its earnings include its strategic positioning in the Chinese market, where demand for agricultural and industrial inputs is high, as well as its established supply chain and distribution networks. Additionally, the company may engage in partnerships or joint ventures to enhance its production capabilities 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
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
Positive
Last Price2.08
Price Trends
50DMA
1.90
Positive
100DMA
1.90
Positive
200DMA
1.91
Positive
Market Momentum
MACD
0.06
Negative
RSI
64.37
Neutral
STOCH
83.99
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 2.08 is above the 20-day moving average (MA) of 2.01, above the 50-day MA of 1.90, and above the 200-day MA of 1.91, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 64.37 is Neutral, neither overbought nor oversold. The STOCH value of 83.99 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$9.13B7.9410.52%4.36%-4.50%58.32%
79
Outperform
HK$7.11B4.2617.58%4.82%-3.45%20.63%
73
Outperform
HK$9.59B8.255.83%6.33%-9.71%-56.34%
58
Neutral
HK$17.12B4.56-6.43%5.15%-3.18%-62.89%
51
Neutral
HK$1.92B96.740.59%-21.05%-87.68%
42
Neutral
€13.25B-16.73%-29.52%-73.10%
39
Underperform
HK$853.76M-81.86%-4.88%-34.75%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3983
China BlueChemical
2.08
-0.12
-5.33%
HK:8189
Tianjin TEDA Biomedical Engineering Co. Ltd. Class H
0.41
0.34
485.71%
HK:1053
Chongqing Iron & Steel Co., Ltd. Class H
1.29
0.69
115.00%
HK:1866
China XLX Fertiliser Ltd.
5.54
2.02
57.39%
HK:3318
China Boton Group Co., Ltd.
1.78
-0.23
-11.44%
HK:0297
Sinofert Holdings
1.31
0.33
34.08%

China BlueChemical Corporate Events

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.

China BlueChemical Announces Final Dividend for 2024
Apr 14, 2025

China BlueChemical Ltd. has announced a final cash dividend of RMB 0.1208 per share for the financial year ending December 31, 2024. The announcement includes key dates for shareholders, such as the ex-dividend date on June 2, 2025, and the payment date on June 30, 2025. The company will withhold a 10% enterprise income tax for dividends distributed to non-resident enterprises. This announcement reflects the company’s commitment to returning value to its shareholders and may impact its financial positioning and attractiveness to investors.

China BlueChemical Announces Key Resolutions for Upcoming AGM
Apr 14, 2025

China BlueChemical Ltd. has announced its upcoming annual general meeting scheduled for May 29, 2025, where several key resolutions will be considered. These include the approval of the board and supervisory committee reports, audited financial statements, profit distribution, and budget proposals for 2025. Additionally, the re-appointment of auditors and the appointment of new directors will be discussed. A special resolution will also be considered to grant the board a mandate to issue domestic and overseas shares, subject to regulatory approvals. This meeting is significant for stakeholders as it outlines the company’s strategic direction and governance for the upcoming year.

China BlueChemical Proposes H Shares Repurchase Plan
Apr 14, 2025

China BlueChemical Ltd. has announced a special resolution to be considered at its upcoming H Shareholders’ Class Meeting, which involves granting the board of directors a mandate to repurchase up to 10% of its overseas listed foreign shares, known as H Shares. This move is aimed at optimizing the company’s capital structure and potentially enhancing shareholder value, reflecting a strategic focus on market conditions and operational needs.

China BlueChemical to Consider H Shares Repurchase Mandate
Apr 14, 2025

China BlueChemical Ltd. has announced a Domestic Shareholders’ Class Meeting to discuss and potentially approve a special resolution granting the board of directors the authority to repurchase up to 10% of its overseas listed foreign shares (H Shares). This move is aimed at aligning with market conditions and the company’s needs, potentially impacting its capital structure and shareholder value. The resolution will empower the board to manage the repurchase details, including pricing and timing, and make necessary amendments to the company’s articles of association to reflect any changes in registered capital.

China BlueChemical Announces Closure of H Share Register for 2024 AGM
Apr 10, 2025

China BlueChemical Ltd. has announced the closure of its register of members for H shares in preparation for its 2024 annual general meeting and class meetings scheduled for May 29, 2025. This move is aimed at determining the list of H shareholders eligible to attend and vote at these meetings, which are significant for the company’s governance and stakeholder engagement.

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: Jun 24, 2025