The Discounted Cash Flow (DCF) valuation of China BlueChemical Ltd (3983.HK) is 3.00 HKD. With the latest stock price at 2.08 HKD, the upside of China BlueChemical Ltd based on DCF is 44.4%.
Based on the latest price of 2.08 HKD and our DCF valuation, China BlueChemical Ltd (3983.HK) is a buy. Buying 3983.HK stocks now will result in a potential gain of 44.4%.
Range | Selected | |
WACC / Discount Rate | 6.5% - 8.5% | 7.5% |
Long-term Growth Rate | 1.0% - 3.0% | 2.0% |
Fair Price | 2.23 - 4.64 | 3.00 |
Upside | 7.2% - 123.0% | 44.4% |
(CNY in millions) | Projections | |||||
12-2024 | 12-2025 | 12-2026 | 12-2027 | 12-2028 | 12-2029 | |
Revenue | 11,946 | 13,658 | 13,755 | 14,034 | 14,466 | 15,082 |
% Growth | 8% | 14% | 1% | 2% | 3% | 4% |
Cost of goods sold | (10,242) | (11,709) | (11,792) | (12,032) | (12,402) | (12,930) |
% of Revenue | 86% | 86% | 86% | 86% | 86% | 86% |
Selling, G&A expenses | (720) | (824) | (829) | (846) | (872) | (909) |
% of Revenue | 6% | 6% | 6% | 6% | 6% | 6% |
Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
% of Revenue | 0% | 0% | 0% | 0% | 0% | 0% |
Net interest & other expenses | 483 | 552 | 556 | 567 | 585 | 610 |
% of Revenue | 4% | 4% | 4% | 4% | 4% | 4% |
Tax expense | (316) | (361) | (364) | (371) | (383) | (399) |
Tax rate | 22% | 22% | 22% | 22% | 22% | 22% |
Net profit | 1,151 | 1,316 | 1,325 | 1,352 | 1,394 | 1,453 |
% Margin | 10% | 10% | 10% | 10% | 10% | 10% |