SEHK:3983

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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 established dividend payer.

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: 3983 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.8%

3983

0.09%

HK Chemicals

1.2%

HK Market


1 Year Return

-44.8%

3983

-11.6%

HK Chemicals

5.4%

HK Market

Return vs Industry: 3983 underperformed the Hong Kong Chemicals industry which returned -11.6% over the past year.

Return vs Market: 3983 underperformed the Hong Kong Market which returned 5.4% over the past year.


Shareholder returns

3983IndustryMarket
7 Day1.8%0.09%1.2%
30 Day-4.1%-3.6%-4.4%
90 Day-1.7%9.2%7.6%
1 Year-41.0%-44.8%-6.4%-11.6%9.7%5.4%
3 Year-40.8%-49.8%-25.8%-38.2%3.5%-7.6%
5 Year-43.9%-56.4%-12.5%-31.1%12.0%-6.8%

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

Valuation

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

6.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3983 (HK$1.16) is trading above our estimate of fair value (HK$1.07)

Significantly Below Fair Value: 3983 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3983 is poor value based on its PE Ratio (6.8x) compared to the HK Chemicals industry average (6.4x).

PE vs Market: 3983 is good value based on its PE Ratio (6.8x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 3983 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 3983 is good value based on its PB Ratio (0.3x) compared to the HK Chemicals industry average (0.6x).


Next Steps

Future Growth

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

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3983's forecast earnings growth (10.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 3983's earnings (10.7% per year) are forecast to grow slower than the Hong Kong market (19% per year).

High Growth Earnings: 3983's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3983's revenue (2.1% per year) is forecast to grow slower than the Hong Kong market (11.6% per year).

High Growth Revenue: 3983's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3983's Return on Equity is forecast to be low in 3 years time (4.7%).


Next Steps

  • Explore growth companies in the Materials industry.

Past Performance

How has China BlueChemical performed over the past 5 years?

37.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3983 has high quality earnings.

Growing Profit Margin: 3983's current net profit margins (6.5%) are lower than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: 3983's earnings have grown significantly by 37.2% per year over the past 5 years.

Accelerating Growth: 3983's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3983 had negative earnings growth (-49%) over the past year, making it difficult to compare to the Chemicals industry average (-9.6%).


Return on Equity

High ROE: 3983'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: 3983's short term assets (CN¥10.9B) exceed its short term liabilities (CN¥3.6B).

Long Term Liabilities: 3983's short term assets (CN¥10.9B) exceed its long term liabilities (CN¥666.0M).


Debt to Equity History and Analysis

Debt Level: 3983's debt to equity ratio (13.3%) is considered satisfactory.

Reducing Debt: 3983's debt to equity ratio has reduced from 14.2% to 13.3% over the past 5 years.

Debt Coverage: 3983's debt is well covered by operating cash flow (56.9%).

Interest Coverage: 3983 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

7.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3983's dividend (7.29%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 3983's dividend (7.29%) is in the top 25% of dividend payers in the Hong Kong market (6.86%)


Stability and Growth of Payments

Stable Dividend: 3983's dividend payments have been volatile in the past 10 years.

Growing Dividend: 3983's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.8%), 3983's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3983's dividends in 3 years are forecast to be covered by earnings (51.8% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Weimin Wang (55 yo)

2.42yrs

Tenure

CN¥1,504,000

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 and its Chairman since December 4, 2019. M ...


CEO Compensation Analysis

Compensation vs Market: Weimin's total compensation ($USD215.85K) is below average for companies of similar size in the Hong Kong market ($USD495.20K).

Compensation vs Earnings: Weimin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Weimin Wang
Acting Chairman2.42yrsCN¥1.50mno data
Xiaoxia Wu
CFO, VP & Joint Company Secretary3.17yrsno datano data
Jian Song
General Manager of Sales Department and Assistant to General Managerno datano datano data
Qian Miao
Vice President14.33yrsno 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 President8yrsno datano data
Jun Yao
Vice President0.42yrno datano data

3.2yrs

Average Tenure

57yo

Average Age

Experienced Management: 3983's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Weimin Wang
Acting Chairman2.42yrsCN¥1.50mno data
Kit Ying Lee
Independent Non-Executive Director8.17yrsCN¥260.00kno data
Kwan Hung Lee
Independent Non-Executive Director8.17yrsCN¥260.00kno data
Jun Meng
Non-Executive Director2.83yrsno datano data
Lijie Liu
Supervisor7.92yrsCN¥266.00kno data
Xinjun Guo
Non-Executive Director4.25yrsno datano data
Changchun Yu
Independent Non-Executive Director4.25yrsCN¥130.00kno data
Xiaoyu Li
Independent Supervisor5.25yrsno datano data
Jianyao Liu
Member of Supervisory Board0.25yrno datano data

4.3yrs

Average Tenure

55yo

Average Age

Experienced Board: 3983's board of directors are considered experienced (4.3 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: 3983
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: HK$5.348b
  • Shares outstanding: 4.61b
  • Website: https://www.chinabluechem.com.cn

Number of Employees


Location

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 12:52
End of Day Share Price2020/08/07 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.