DB:H1Q

Stock Analysis Report

China BlueChemical

Executive Summary

China BlueChemical Ltd., together with its subsidiaries, develops, manufactures, and sells mineral fertilisers and chemical products in the People’s Republic of China and internationally.


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.

Share Price & News

How has China BlueChemical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: H1Q's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.2%

H1Q

10.9%

DE Chemicals

9.1%

DE Market


1 Year Return

-56.7%

H1Q

-27.7%

DE Chemicals

-13.1%

DE Market

Return vs Industry: H1Q underperformed the German Chemicals industry which returned -35.1% over the past year.

Return vs Market: H1Q underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

H1QIndustryMarket
7 Day8.2%10.9%9.1%
30 Day-7.0%2.2%-1.0%
90 Day-35.3%-24.5%-20.7%
1 Year-53.7%-56.7%-24.9%-27.7%-10.6%-13.1%
3 Year-42.8%-49.8%-35.1%-41.2%-10.7%-18.1%
5 Year-57.9%-66.8%-29.3%-40.1%-10.7%-22.8%

Price Volatility Vs. Market

How volatile is China BlueChemical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China BlueChemical undervalued compared to its fair value and its price relative to the market?

7.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: H1Q (€0.12) is trading below our estimate of fair value (€0.14)

Significantly Below Fair Value: H1Q is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: H1Q is good value based on its PE Ratio (6.7x) compared to the Chemicals industry average (13.3x).

PE vs Market: H1Q is good value based on its PE Ratio (6.7x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: H1Q is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: H1Q is good value based on its PB Ratio (0.3x) compared to the DE Chemicals industry average (1.2x).


Next Steps

Future Growth

How is China BlueChemical forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: H1Q's forecast earnings growth (8.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: H1Q's earnings (8.4% per year) are forecast to grow slower than the German market (14.1% per year).

High Growth Earnings: H1Q's earnings are forecast to grow, but not significantly.

Revenue vs Market: H1Q's revenue (0.6% per year) is forecast to grow slower than the German market (3.9% per year).

High Growth Revenue: H1Q's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: H1Q's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

How has China BlueChemical performed over the past 5 years?

37.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: H1Q has high quality earnings.

Growing Profit Margin: H1Q's current net profit margins (6.5%) are lower than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: H1Q's earnings have grown significantly by 37.2% per year over the past 5 years.

Accelerating Growth: H1Q's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: H1Q had negative earnings growth (-49%) over the past year, making it difficult to compare to the Chemicals industry average (-8.9%).


Return on Equity

High ROE: H1Q's Return on Equity (5%) is considered low.


Next Steps

Financial Health

How is China BlueChemical's financial position?


Financial Position Analysis

Short Term Liabilities: H1Q's short term assets (CN¥10.9B) exceed its short term liabilities (CN¥3.6B).

Long Term Liabilities: H1Q's short term assets (CN¥10.9B) exceed its long term liabilities (CN¥666.0M).


Debt to Equity History and Analysis

Debt Level: H1Q's debt to equity ratio (13.3%) is considered satisfactory.

Reducing Debt: H1Q's debt to equity ratio has reduced from 14.2% to 13.3% over the past 5 years.

Debt Coverage: H1Q's debt is well covered by operating cash flow (75.8%).

Interest Coverage: H1Q earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is China BlueChemical's current dividend yield, its reliability and sustainability?

6.91%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: H1Q's dividend (7.42%) is higher than the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: H1Q's dividend (7.42%) is in the top 25% of dividend payers in the German market (4.86%)


Stability and Growth of Payments

Stable Dividend: H1Q's dividend payments have been volatile in the past 10 years.

Growing Dividend: H1Q's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.8%), H1Q's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: H1Q's dividends in 3 years are forecast to be well covered by earnings (49.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Weimin Wang (54yo)

2.08s

Tenure

CN¥1,454,508

Compensation

Mr. Wang Weimin is the Chief Executive Officer and President of China BlueChemical Ltd since March 28, 2018 and has been its Executive Director since May 31, 2018. Mr. Wang was a Vice President of China Bl ...


CEO Compensation Analysis

Compensation vs Market: Weimin's total compensation ($USD205.13K) is below average for companies of similar size in the German market ($USD1.36M).

Compensation vs Earnings: Insufficient data to compare Weimin's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Weimin Wang
CEO, President & Executive Director2.08yrsCN¥1.45mno data
Xiaoxia Wu
CFO, VP & Joint Company Secretary2.83yrsno datano data
Jian Song
General Manager of Sales Department and Assistant to General Managerno datano datano data
Qian Miao
Vice President14yrsno datano data
Xishuan Yan
Chief Mechanical Supervisor and General Manager of Facilities Maintenance Departmentno datano datano data
Liang Zhao
Chief Safety Officer & VPno datano datano data
Renlin Zhou
Vice President7.67yrsno datano data

5.3yrs

Average Tenure

56yo

Average Age

Experienced Management: H1Q's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Weimin Wang
CEO, President & Executive Director2.08yrsCN¥1.45mno data
Kit Ying Lee
Independent Non-Executive Director7.83yrsCN¥252.00kno data
Kwan Hung Lee
Independent Non-Executive Director7.83yrsCN¥252.00kno data
Jun Meng
Non-Executive Director2.5yrsno datano data
Lijie Liu
Supervisor7.58yrsCN¥266.00k0.0046% CN¥30.0k
Quanrong Tang
Chairman of Supervisor2.42yrsno datano data
Xinjun Guo
Non-Executive Director3.92yrsno datano data
Changchun Yu
Independent Non-Executive Director3.92yrsCN¥126.00kno data
Xiaoyu Li
Independent Supervisor4.92yrsno datano data

3.9yrs

Average Tenure

54yo

Average Age

Experienced Board: H1Q's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

China BlueChemical Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China BlueChemical Ltd.
  • Ticker: H1Q
  • Exchange: DB
  • Founded: 2000
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: HK$5.578b
  • Listing Market Cap: HK$657.954m
  • Shares outstanding: 4.61b
  • Website: https://www.chinabluechem.com.cn

Number of Employees


Location

  • China BlueChemical Ltd.
  • Kaikang CNOOC Mansion
  • No. 15, Sanqu
  • Beijing
  • 100029
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3983SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDSep 2006
H1QDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURSep 2006
CBLU.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDSep 2006
CBLU.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDDec 2008

Biography

China BlueChemical Ltd., together with its subsidiaries, develops, manufactures, and sells mineral fertilisers 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 woven plastic bags. It is also involved in the trading of fertilizers and chemicals; mining, processing, manufacturing, and sale of phosphate; port operations; and provision of preparatory work for methanol and dimethyl-ether projects. In addition, the company offers transportation services; and overseas shipping services, as well as produces and supplies food-class carbon dioxide. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 02:16
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.