Risk factor
Very vulnerable to price shocks
Profitability factor
Greatly undervalued vs peers
About
China BlueChemical Ltd. (CBLUY), together with its various affiliated entities, operates extensively within the People's Republic of China and across international markets. The company's core business revolves around the development, production, and sales of a wide array of mineral fertilizers and chemical products. Its operations are structured into several key divisions, including Urea, Phosphorus and Compound Fertiliser, Methanol, and an 'Others' segment. The diverse product lineup features urea; phosphate-based fertilizers such as mono-ammonium phosphate, di-ammonium phosphate, and other compound varieties; methanol; bulk blending fertilizers; polyformaldehyde; and woven plastic bags. Beyond direct manufacturing, CBLUY's activities encompass the trading of various fertilizers and chemicals. It is also engaged in the comprehensive cycle of phosphate, from mining and processing to its eventual manufacturing and sale. Furthermore, the company manages port operations and undertakes initial groundwork for future methanol and dimethyl-ether projects. Complementing these activities, it provides transportation and overseas shipping services, and manufactures and sells acrylonitrile and methyl methacrylate. Established in 2000, China BlueChemical Ltd. maintains its corporate headquarters in Beijing, People's Republic of China. The company adopted its current name in April 2006, having previously been known as CNOOC Chemical Limited. China BlueChemical Ltd. functions as a subsidiary of the China National Offshore Oil Corporation.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD
Target Price
The average target price of 3983.HK is 3.47 and suggests 66.8% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to i