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China BlueChemical

SEHK:3983
Snowflake Description

Undervalued with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3983
SEHK
HK$10B
Market Cap
  1. Home
  2. HK
  3. Materials
Company description

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 last earnings update was 86 days ago. More info.


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3983 Share Price and Events
7 Day Returns
0.9%
SEHK:3983
-1.3%
HK Chemicals
-0.2%
HK Market
1 Year Returns
-15.2%
SEHK:3983
-27.7%
HK Chemicals
-4.5%
HK Market
3983 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China BlueChemical (3983) 0.9% 6.5% -18.3% -15.2% 45.2% -44%
HK Chemicals -1.3% -4.9% -17.8% -27.7% -7.1% -10.2%
HK Market -0.2% 2.7% -8.3% -4.5% 16.5% 1%
1 Year Return vs Industry and Market
  • 3983 outperformed the Chemicals industry which returned -27.7% over the past year.
  • 3983 underperformed the Market in Hong Kong which returned -4.5% over the past year.
Price Volatility
3983
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for China BlueChemical's competitors could be found in our database.

Value

 Is China BlueChemical undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China BlueChemical to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China BlueChemical.

SEHK:3983 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:3983
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.887 (1 + (1- 25%) (23.13%))
1.028
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.028 * 5.96%)
8.13%

Discounted Cash Flow Calculation for SEHK:3983 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China BlueChemical is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:3983 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 8.13%)
2020 1,123.00 Analyst x1 1,038.58
2021 1,279.00 Analyst x1 1,093.93
2022 1,207.52 Est @ -5.59% 955.15
2023 1,167.53 Est @ -3.31% 854.10
2024 1,147.49 Est @ -1.72% 776.33
2025 1,140.59 Est @ -0.6% 713.66
2026 1,142.64 Est @ 0.18% 661.20
2027 1,150.95 Est @ 0.73% 615.94
2028 1,163.72 Est @ 1.11% 575.96
2029 1,179.76 Est @ 1.38% 540.00
Present value of next 10 years cash flows CN¥7,824.84
SEHK:3983 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥1,179.76 × (1 + 2%) ÷ (8.13% – 2%)
CN¥19,645.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥19,645.62 ÷ (1 + 8.13%)10
CN¥8,992.17
SEHK:3983 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥7,824.84 + CN¥8,992.17
CN¥16,817.01
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥16,817.01 / 4,610.00
CN¥3.65
SEHK:3983 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:3983)
1.136
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥3.65 x 1.136
HK$4.14
Value per share (HKD) From above. HK$4.14
Current discount Discount to share price of HK$2.28
= -1 x (HK$2.28 - HK$4.14) / HK$4.14
45%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price China BlueChemical is available for.
Intrinsic value
45%
Share price is HK$2.28 vs Future cash flow value of HK$4.14
Current Discount Checks
For China BlueChemical to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China BlueChemical's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • China BlueChemical's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China BlueChemical's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China BlueChemical's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:3983 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.30
SEHK:3983 Share Price ** SEHK (2019-07-19) in HKD HK$2.28
SEHK:3983 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥2.01
Hong Kong Chemicals Industry PE Ratio Median Figure of 28 Publicly-Listed Chemicals Companies 7.43x
Hong Kong Market PE Ratio Median Figure of 1,510 Publicly-Listed Companies 10.72x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China BlueChemical.

SEHK:3983 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:3983 Share Price ÷ EPS (both in CNY)

= 2.01 ÷ 0.30

6.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China BlueChemical is good value based on earnings compared to the HK Chemicals industry average.
  • China BlueChemical is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China BlueChemical's expected growth come at a high price?
Raw Data
SEHK:3983 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.71x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
-12.9%per year
Hong Kong Chemicals Industry PEG Ratio Median Figure of 5 Publicly-Listed Chemicals Companies -0.52x
Hong Kong Market PEG Ratio Median Figure of 479 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

SEHK:3983 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.71x ÷ -12.9%

-0.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China BlueChemical earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on China BlueChemical's assets?
Raw Data
SEHK:3983 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥3.08
SEHK:3983 Share Price * SEHK (2019-07-19) in HKD HK$2.28
SEHK:3983 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.88 CN¥2.01
Hong Kong Chemicals Industry PB Ratio Median Figure of 35 Publicly-Listed Chemicals Companies 0.84x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:3983 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:3983 Share Price ÷ Book Value per Share (both in CNY)

= 2.01 ÷ 3.08

0.65x

* Primary Listing of China BlueChemical.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China BlueChemical is good value based on assets compared to the HK Chemicals industry average.
X
Value checks
We assess China BlueChemical's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. China BlueChemical has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-12.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China BlueChemical expected to grow at an attractive rate?
  • China BlueChemical's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
  • China BlueChemical's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • China BlueChemical's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:3983 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:3983 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts -12.9%
SEHK:3983 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 0.3%
Hong Kong Chemicals Industry Earnings Growth Rate Market Cap Weighted Average -4.9%
Hong Kong Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 2.2%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:3983 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:3983 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 11,409 2,067 925 3
2020-12-31 11,029 2,265 1,076 4
2019-12-31 11,049 446 1,135 4
SEHK:3983 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 11,260 2,004 1,379
2018-09-30 10,710 2,054 946
2018-06-30 10,161 2,104 512
2018-03-31 9,980 1,902 281
2017-12-31 9,800 1,699 50
2017-09-30 9,781 1,600 124
2017-06-30 9,763 1,500 199
2017-03-31 9,134 1,308 -8
2016-12-31 8,504 1,115 -216
2016-09-30 9,154 1,059 -7
2016-06-30 9,804 1,003 201
2016-03-31 10,238 1,179 515

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China BlueChemical's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • China BlueChemical's revenue is expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:3983 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from China BlueChemical Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3983 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.23 0.29 0.19 4.00
2020-12-31 0.24 0.29 0.19 5.00
2019-12-31 0.24 0.29 0.16 5.00
SEHK:3983 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.30
2018-09-30 0.21
2018-06-30 0.11
2018-03-31 0.06
2017-12-31 0.01
2017-09-30 0.03
2017-06-30 0.04
2017-03-31 0.00
2016-12-31 -0.05
2016-09-30 0.00
2016-06-30 0.04
2016-03-31 0.11

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • China BlueChemical is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China BlueChemical's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China BlueChemical has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has China BlueChemical performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China BlueChemical's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China BlueChemical's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • China BlueChemical's 1-year earnings growth exceeds its 5-year average (2645% vs -18.3%)
  • China BlueChemical's earnings growth has exceeded the HK Chemicals industry average in the past year (2645% vs 24.1%).
Earnings and Revenue History
China BlueChemical's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China BlueChemical Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3983 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 11,259.59 1,378.89 874.06
2018-09-30 10,710.20 945.66 864.55
2018-06-30 10,160.81 512.43 855.03
2018-03-31 9,980.24 281.33 846.88
2017-12-31 9,799.68 50.23 838.74
2017-09-30 9,781.50 124.48 823.55
2017-06-30 9,763.32 198.73 808.36
2017-03-31 9,133.56 -8.39 801.48
2016-12-31 8,503.79 -215.50 794.60
2016-09-30 9,153.93 -7.45 802.05
2016-06-30 9,804.07 200.60 809.50
2016-03-31 10,237.95 515.13 813.63
2015-12-31 10,671.84 829.66 817.76
2015-09-30 10,475.17 496.20 871.57
2015-06-30 10,278.50 162.75 925.39
2015-03-31 10,537.69 134.02 934.40
2014-12-31 10,796.89 105.29 943.41
2014-09-30 10,781.12 620.98 932.43
2014-06-30 10,765.35 1,136.66 921.46
2014-03-31 10,744.49 1,391.87 872.41
2013-12-31 10,723.64 1,647.08 823.36
2013-09-30 10,841.78 1,753.52 747.33
2013-06-30 10,959.93 1,859.96 671.30
2013-03-31 10,849.57 1,835.21 660.35
2012-12-31 10,739.21 1,810.46 649.41
2012-09-30 10,370.13 1,837.20 620.14

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China BlueChemical has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China BlueChemical used its assets more efficiently than the HK Chemicals industry average last year based on Return on Assets.
  • China BlueChemical has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess China BlueChemical's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China BlueChemical has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is China BlueChemical's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up China BlueChemical's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China BlueChemical is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • China BlueChemical's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China BlueChemical's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China BlueChemical Company Filings, last reported 6 months ago.

SEHK:3983 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 15,127.64 785.00 8,818.04
2018-09-30 15,127.64 785.00 8,818.04
2018-06-30 14,462.16 1,360.00 8,361.89
2018-03-31 14,462.16 1,360.00 8,361.89
2017-12-31 14,247.93 810.00 7,016.42
2017-09-30 14,247.93 810.00 7,016.42
2017-06-30 14,411.76 1,618.90 6,791.40
2017-03-31 14,411.76 1,618.90 6,791.40
2016-12-31 14,313.86 878.90 5,776.19
2016-09-30 14,313.86 878.90 5,776.19
2016-06-30 14,409.40 2,518.40 6,667.94
2016-03-31 14,409.40 2,518.40 6,667.94
2015-12-31 14,881.57 967.28 5,438.29
2015-09-30 14,881.57 967.28 5,438.29
2015-06-30 14,586.96 2,483.85 5,640.01
2015-03-31 14,586.96 2,483.85 5,640.01
2014-12-31 14,749.29 2,090.26 5,667.02
2014-09-30 14,749.29 2,090.26 5,667.02
2014-06-30 15,199.07 857.54 3,124.01
2014-03-31 15,199.07 857.54 3,124.01
2013-12-31 15,501.23 31.00 3,103.53
2013-09-30 15,501.23 31.00 3,103.53
2013-06-30 14,755.05 5.00 2,066.51
2013-03-31 14,755.05 5.00 2,066.51
2012-12-31 14,626.67 0.00 2,683.47
2012-09-30 14,626.67 0.00 2,723.99
  • China BlueChemical's level of debt (14%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.3% vs 14% today).
  • Debt is well covered by operating cash flow (94.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 18.4x coverage).
X
Financial health checks
We assess China BlueChemical's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China BlueChemical has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.47%
Current annual income from China BlueChemical dividends. Estimated to be 5.94% next year.
If you bought HK$2,000 of China BlueChemical shares you are expected to receive HK$149 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • China BlueChemical's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.09%).
  • China BlueChemical's dividend is above the markets top 25% of dividend payers in Hong Kong (5.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:3983 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Hong Kong Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 7.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:3983 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.12 4.00
2020-12-31 0.12 5.00
2019-12-31 0.12 5.00
SEHK:3983 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-27 0.150 6.947
2018-04-26 0.070 3.110
2018-03-28 0.070 4.130
2017-09-22 0.000 0.000
2017-08-29 0.000 0.000
2017-03-28 0.000 0.000
2016-04-22 0.080 5.176
2016-03-30 0.080 5.093
2015-05-28 0.010 0.559
2014-05-26 0.140 5.387
2013-05-31 0.150 4.322
2012-03-29 0.160 3.974
2011-06-03 0.090 1.834
2010-06-04 0.070 1.417
2009-04-24 0.095 2.390
2009-03-27 0.095 2.543

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of China BlueChemical's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.8x coverage).
X
Income/ dividend checks
We assess China BlueChemical's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China BlueChemical afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China BlueChemical has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of China BlueChemical's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Weimin Wang
COMPENSATION CN¥1,454,508
AGE 54
TENURE AS CEO 1.3 years
CEO Bio

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 BlueChemical Ltd since August 2012 until March 28, 2018. Mr. Wang was a Technician at Qinhuangdao Sino-Arab Chemical Fertilizer Corp. from July 1989 to January 1990; shift leader of process workshop, section leader of finished product workshop and head of finished product workshop of Sino-Arab Chemical Fertilizers Co. Ltd. from January 1990 to June 1994. He served as Assistant To General Manager of Sino-Arab Chemical Fertilizers Co. Ltd. from June 1994 to December 1995; Production Plant Manager of Sino-Arab Chemical Fertilizers Co. Ltd. from December 1995 to June 1998 and Deputy General Manager of Sino-Arab Chemical Fertilizers Co. Ltd. from June 1998 to August 2005; He served as Leader of the on-site initiation team of the mineral-fertiliser integration project at Dayukou, Hubei from November 2002 to August 2005; General Manager and CCP Committee secretary of Hubei Dayukou Chemical Co., Ltd. from August 2005 to July 2008; Assistant To President of the China BlueChemical Ltd; and general manager of Hubei Dayukou Chemical Co., Ltd. from July 2008 to July 2012. He has been chairman of Hubei Dayukou Chemical Co., Ltd. since November 2012. He was appointed as an executive director of China BlueChemical (Hong Kong) Ltd. in October 2014; and a director of CNOOC Kingboard Chemical Limited in January 2015. He was awarded the title of senior engineer (professor grade). He graduated from the Department of Chemical Engineering of Hebei Polytechnic Institute in 1989 majoring in organic chemistry with a bachelor’s degree. He obtained an MBA degree from the School of Management of Tianjin University in March 2001 and an EMBA degree from China Europe International Business School in July 2001.

CEO Compensation
  • Insufficient data for Weimin to compare compensation growth.
  • Weimin's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the China BlueChemical management team in years:

2
Average Tenure
55
Average Age
  • The tenure for the China BlueChemical management team is about average.
Management Team

Qinglong Xia

TITLE
Chairman of the Board
COMPENSATION
CN¥1M
AGE
55

Weimin Wang

TITLE
CEO, President & Executive Director
COMPENSATION
CN¥1M
AGE
54
TENURE
1.3 yrs

Xiaoxia Wu

TITLE
CFO, VP & Joint Company Secretary
AGE
46
TENURE
2.1 yrs

Jian Song

TITLE
General Manager of Sales Department and Assistant to General Manager
AGE
63

Xishuan Yan

TITLE
Chief Mechanical Supervisor and General Manager of Facilities Maintenance Department
AGE
59

Liang Zhao

TITLE
Chief Safety Officer & VP
AGE
56

Sau Mei Ng

TITLE
Joint Company Secretary
AGE
42
TENURE
2 yrs
Board of Directors Tenure

Average tenure and age of the China BlueChemical board of directors in years:

3.2
Average Tenure
54.5
Average Age
  • The tenure for the China BlueChemical board of directors is about average.
Board of Directors

Weimin Wang

TITLE
CEO, President & Executive Director
COMPENSATION
CN¥1M
AGE
54
TENURE
1.2 yrs

Karen Lee

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥252K
AGE
71
TENURE
7.1 yrs

Qinglong Xia

TITLE
Chairman of the Board
COMPENSATION
CN¥1M
AGE
55
TENURE
1.3 yrs

Eddie Lee

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥252K
AGE
54
TENURE
7.1 yrs

Quanrong Tang

TITLE
Chairman of Supervisor
AGE
54
TENURE
1.7 yrs

Jun Meng

TITLE
Non-Executive Director
AGE
59
TENURE
1.8 yrs

Xinjun Guo

TITLE
Non-Executive Director
AGE
55
TENURE
3.2 yrs

Changchun Yu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥126K
AGE
50
TENURE
3.2 yrs

Lijie Liu

TITLE
Supervisor
COMPENSATION
CN¥266K
AGE
49
TENURE
6.8 yrs

Xiaoyu Li

TITLE
Independent Supervisor
AGE
61
TENURE
4.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
19. Jun 19 Buy Edgbaston Investment Partners LLP Company 19. Jun 19 19. Jun 19 4,508,000 HK$2.16 HK$9,749,894
04. Jun 19 Sell Colonial First State Asset Management (Australia) Limited Company 03. Jun 19 03. Jun 19 -1,750,000 HK$2.78 HK$-4,864,994
23. May 19 Buy Invesco Ltd. Company 20. May 19 20. May 19 6,532,000 HK$2.69 HK$17,598,505
16. May 19 Sell Colonial First State Asset Management (Australia) Limited Company 14. May 19 14. May 19 -15,072,000 HK$2.68 HK$-40,392,916
22. Aug 18 Sell Edgbaston Investment Partners LLP Company 21. Aug 18 21. Aug 18 -2,236,000 HK$2.60 HK$-5,805,771
17. Jan 19 Buy Colonial First State Asset Management (Australia) Limited Company 16. Jan 19 16. Jan 19 2,004,000 HK$2.49 HK$4,989,959
20. Dec 18 Buy Hermes Investment Management Limited Company 19. Dec 18 19. Dec 18 3,484,000 HK$2.58 HK$8,989,066
01. Aug 18 Buy Hermes Investment Management Limited Company 01. Aug 18 01. Aug 18 514,000 HK$2.91 HK$1,498,259
23. Oct 18 Sell Edgbaston Investment Partners LLP Company 22. Oct 18 22. Oct 18 -1,640,000 HK$2.89 HK$-4,741,406
15. Oct 18 Sell Colonial First State Asset Management (Australia) Limited Company 12. Oct 18 12. Oct 18 -2,732,000 HK$2.92 HK$-7,977,445
10. Oct 18 Sell Colonial First State Asset Management (Australia) Limited Company 08. Oct 18 08. Oct 18 -12,570,000 HK$3.19 HK$-40,098,290
24. Sep 18 Sell Colonial First State Asset Management (Australia) Limited Company 21. Sep 18 21. Sep 18 -4,920,000 HK$2.82 HK$-13,874,395
17. Sep 18 Sell Colonial First State Asset Management (Australia) Limited Company 14. Sep 18 14. Sep 18 -7,436,000 HK$2.78 HK$-20,672,105
13. Sep 18 Sell Edgbaston Investment Partners LLP Company 12. Sep 18 12. Sep 18 -1,260,000 HK$2.78 HK$-3,505,449
11. Sep 18 Sell Colonial First State Asset Management (Australia) Limited Company 10. Sep 18 10. Sep 18 -2,024,000 HK$2.81 HK$-5,687,437
07. Sep 18 Sell Colonial First State Asset Management (Australia) Limited Company 05. Sep 18 05. Sep 18 -16,114,000 HK$2.79 HK$-44,880,776
07. Aug 18 Sell Edgbaston Investment Partners LLP Company 07. Aug 18 07. Aug 18 -1,242,000 HK$2.66 HK$-3,298,502
X
Management checks
We assess China BlueChemical's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China BlueChemical has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

China BlueChemical (HKG:3983) Shareholders Booked A 49% Gain In The Last Three Years

(HKG:3983) shareholders, since the share price has fallen 17% in that time. … China BlueChemical was able to grow its EPS at 18% per year over three years, sending the share price higher. … We note that for China BlueChemical the TSR over the last 3 years was 69%, which is better than the share price return mentioned above.

Simply Wall St -

Read This Before Buying China BlueChemical Ltd. (HKG:3983) For Its Dividend

While the above analysis focuses on dividends relative to a company's earnings, we do note China BlueChemical's strong net cash position, which will let it pay larger dividends for a time, should it choose. … China BlueChemical has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. … However, it's also important to assess if earnings per share (EPS) are growing. Over the long term, dividends need to grow at or above the rate of inflation, in order to maintain the recipient's purchasing power. In the last five years, China BlueChemical's earnings per share have shrunk at approximately 3.5% per annum. If earnings continue to decline, the dividend may come under pressure. Every investor should make an assessment of whether the company is taking steps to stabilise the situation. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

Does China BlueChemical Ltd.’s (HKG:3983) ROCE Reflect Well On The Business?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for China BlueChemical: 0.11 = CN¥1.7b ÷ (CN¥20b - CN¥3.7b) (Based on the trailing twelve months to December 2018.) Therefore, China BlueChemical has an ROCE of 11%. … Do China BlueChemical's Current Liabilities Skew Its ROCE? … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

What Should You Know About China BlueChemical Ltd.'s (HKG:3983) Earnings Trajectory?

The most recent earnings announcement China BlueChemical Ltd.'s (HKG:3983) released in December 2018 suggested that the business benefited from a substantial tailwind, more than doubling its earnings from the prior year. … Check out our latest analysis for China BlueChemical Analysts' expectations for the upcoming year seems pessimistic, with earnings decreasing by -7.4%. … SEHK:3983 Past and Future Earnings, June 4th 2019 While it is informative understanding the rate of growth year by year relative to today’s value, it may be more valuable gauging the rate at which the earnings are growing on average every year.

Simply Wall St -

What Are Analysts Saying About China BlueChemical Ltd.'s (HKG:3983) Growth?

Check out our latest analysis for China BlueChemical How is China BlueChemical going to perform in the near future? … I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of 3983's earnings growth over these next few years. … SEHK:3983 Past and Future Earnings, May 23rd 2019 By 2022, 3983's earnings should reach CN¥1.3b, from current levels of CN¥1.4b, resulting in an annual growth rate of -3.0%.

Simply Wall St -

Is China BlueChemical Ltd. (HKG:3983) A Volatile Stock?

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … This is above 1, so historically its share price has been influenced by the broader volatility of the stock market.

Simply Wall St -

Is Now The Time To Look At Buying China BlueChemical Ltd. (HKG:3983)?

(HKG:3983), which is in the chemicals business, and is based in China,. … As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on China BlueChemical’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Does China BlueChemical (HKG:3983) Deserve A Spot On Your Watchlist?

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like China BlueChemical (HKG:3983). … How Quickly Is China BlueChemical Increasing Earnings Per Share. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth.

Simply Wall St -

How China BlueChemical Ltd. (HKG:3983) Could Add Value To Your Portfolio

I've been keeping an eye on China BlueChemical Ltd. … Looking at the company as a whole, as a potential stock investment, I believe 3983 has a lot to offer. … company with a

Simply Wall St -

Should You Be Tempted To Sell China BlueChemical Ltd. (HKG:3983) Because Of Its P/E Ratio?

How Do I Calculate China BlueChemical's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 19 = CN¥2.11 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.11

Simply Wall St -

Company Info

Description

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.

Details
Name: China BlueChemical Ltd.
3983
Exchange: SEHK
Founded: 2000
HK$10,418,600,000
4,610,000,000
Website: http://www.chinabluechem.com.cn
Address: China BlueChemical Ltd.
Kaikang CNOOC Mansion,
No. 15, Sanqu,
Beijing,
100029,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 3983 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 29. Sep 2006
OTCPK CBLU.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 29. Sep 2006
DB H1Q Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 29. Sep 2006
Number of employees
Current staff
Staff numbers
4,960
China BlueChemical employees.
Industry
Fertilizers and Agricultural Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 12:47
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/10
Last earnings filing: 2019/04/24
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.