Dongyue Group Limited (0189) AI Stock Analysis

• Market Cap: HK$16.11B
• Dividend Yield: 1.09%
• Average Volume (3M): 10.91M
• Price to Earnings (P/E): 18.2
• Beta (1Y): 1.02
• Revenue Growth: -4.04%
• EPS Growth: 44.12%
• Country: HK
• Employees: 6,922
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals
• EPS (TTM): 0.51
• Shares Outstanding: 1,732,711,700
• 10 Day Avg. Volume: 5,652,638
• 30 Day Avg. Volume: 10,907,762
• PEG Ratio: 0.41
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$10.60
• Price Target Upside: 8.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

The overall stock score of 61.5 reflects moderate financial performance and technical indicators. Key strengths include a strong equity position and low leverage, while challenges include declining revenues and potential cash flow issues. Technical analysis indicates caution with bearish momentum signs, although valuation is neither particularly cheap nor expensive, suggesting alignment with market expectations.

Dongyue Group Limited Business Overview & Revenue Model

Company Description

Dongyue Group Limited (0189) is a leading Chinese chemical company specializing in the production and sales of various fluorochemical products. Operating primarily in the sectors of chemical manufacturing and environmental protection, the company is renowned for its diverse portfolio that includes refrigerants, polymers, and organic silicone materials. Dongyue Group is committed to innovation and sustainability, focusing on providing high-quality, eco-friendly products to meet the evolving needs of its global clientele.

How the Company Makes Money

Dongyue Group Limited generates revenue through the manufacturing and sale of its chemical products. The company's primary revenue streams are derived from its fluorochemical segment, which includes the production of refrigerants used in air conditioning and refrigeration systems. Additionally, the company earns income from its polymer and organic silicone divisions, offering materials used in a wide range of industrial applications. Strategic partnerships and investments in R&D also play a crucial role in enhancing their product offerings and expanding market reach, thereby contributing to their earnings. The company benefits from strong demand in both domestic and international markets, leveraging its advanced production capabilities and extensive distribution networks to drive sales.

Dongyue Group Limited Financial Statement Overview

Summary

Dongyue Group Limited shows moderate financial health with stable margins and a strong equity position. However, declining revenues and unavailability of cash flow data for 2024 highlight potential concerns in profitability and cash flow management. The company benefits from low leverage, but needs to address revenue growth and cash flow sustainability to enhance financial performance.

Income Statement

The company experienced a decline in total revenue from 2022 to 2024, showing negative growth of -29.2%. Gross profit margin for 2024 stands at 21.6%, which is moderate. Net profit margin for 2024 is 5.7%, indicating limited profitability. EBIT and EBITDA margins for 2024 are 8.4% and 16.7%, respectively, showing average operational efficiency. The decline in revenue and profitability is a concern, but margins remain relatively stable.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 57.8% in 2024, demonstrating stability. The debt-to-equity ratio is very low at 0.002, indicating minimal leverage and reduced financial risk. ROE for 2024 is 6.7%, which is modest. Overall, the balance sheet suggests financial stability with limited leverage.

Cash Flow

Cash flow metrics are unavailable for 2024, limiting analysis. However, the past trend shows negative free cash flow in 2023, which is a concern. The operating cash flow to net income ratio was strong in 2022, suggesting good conversion of earnings into cash, but the lack of data for 2024 raises concerns about cash flow sustainability.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
14.49B	20.03B	15.84B	10.04B	12.96B
	Gross Profit
2.44B	6.51B	5.22B	2.24B	3.45B
	EBIT
475.23M	3.71B	3.13B	943.60M	2.08B
	EBITDA
1.87B	4.62B	3.81B	1.58B	2.64B
	Net Income Common Stockholders
707.79M	3.86B	2.07B	772.17M	1.46B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.13B	5.45B	5.25B	4.43B	3.10B
	Total Assets
21.95B	24.64B	21.60B	17.12B	14.93B
	Total Debt
32.05M	43.63M	664.26M	1.95B	1.98B
	Net Debt
-2.52B	-5.27B	-4.44B	-2.33B	-963.04M
	Total Liabilities
5.01B	6.15B	5.96B	6.59B	5.98B
	Stockholders Equity
14.79B	16.08B	13.12B	8.54B	7.88B
Cash Flow		Free Cash Flow
-536.56M	1.24B	-43.38M	525.19M	843.48M
	Operating Cash Flow
1.38B	5.08B	3.91B	2.26B	2.33B
	Investing Cash Flow
-2.63B	-2.91B	-4.09B	-1.96B	-1.40B
	Financing Cash Flow
-1.51B	-1.96B	999.52M	1.03B	-1.31B

Dongyue Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0189, the sentiment is Positive. The current price of 9.73 is above the 20-day moving average (MA) of 8.72, above the 50-day MA of 8.88, and above the 200-day MA of 7.46, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 64.29 is Neutral, neither overbought nor oversold. The STOCH value of 89.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0189.

Dongyue Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2628	75 Outperform	HK$931.59B	3.53	22.83%	4.72%	5.96%	124.20%
2899	74 Outperform	$497.37B	11.94	27.63%	2.04%	3.41%	60.46%
2318	72 Outperform	$928.26B	6.69		5.71%	11.71%	37.04%
2600	71 Outperform	HK$109.06B	5.50	20.63%	4.17%	2.84%	―
0189	62 Neutral	HK$16.11B	18.22	6.03%	1.09%	-4.04%	44.12%
0386	58 Neutral	HK$684.99B	10.71		9.50%	-7.72%	-26.66%
Sector *	49 Neutral	$1.96B	-1.23	-21.20%	3.72%	0.95%	-28.96%

Dongyue Group Limited Corporate Events

Dongyue Group’s Subsidiary Reports Q1 2025 Financial Results

Dongyue Group Limited announced the quarterly results of its subsidiary, Shandong Dongyue Organosilicon Materials Co. Ltd., for the first quarter of 2025. The report, published on the Shenzhen Stock Exchange, reveals unaudited financials showing total assets of RMB 6,124,528, revenue of RMB 1,202,001, and a net profit of RMB 36,819. Stakeholders are advised to exercise caution as the results are based on internal management records and have not been audited.

Dongyue Group Limited Announces Annual General Meeting Details

Dongyue Group Limited has announced the details of its upcoming Annual General Meeting, scheduled for June 5, 2025, in Hong Kong. During the meeting, shareholders will discuss and vote on several key resolutions, including the adoption of the company’s audited financial statements for 2024, the re-election of directors, the authorization of directors’ remuneration, the re-appointment of auditors, and the declaration of a final dividend. Additionally, there will be a resolution to grant the directors the authority to issue additional shares, subject to certain conditions. This meeting is significant as it will address important governance and financial decisions that could impact the company’s strategic direction and shareholder value.

Dongyue Group Limited Reports Strong Profit Growth in 2024

Dongyue Group Limited announced its annual results for the year ended December 31, 2024, reporting a revenue of RMB 14,181 million, a slight decrease from the previous year. However, the company achieved a significant increase in gross profit and profit before taxation, indicating improved operational efficiency. The gross profit margin rose to 21.62% from 16.81%, and profit attributable to owners increased to RMB 811 million. The financial results reflect a strong performance in the chemical industry, with implications for enhanced shareholder value.

Dongyue Group Announces Final Dividend for 2024

Dongyue Group Limited announced a final ordinary cash dividend of HKD 0.1 per share for the financial year ending December 31, 2024. This dividend reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact investor sentiment and the company’s market positioning.

Dongyue Group Limited Projects Significant Profit Growth for 2024

Dongyue Group Limited has announced a positive profit alert, expecting a significant increase in profits for the year ending December 31, 2024, compared to the previous year. This growth is attributed to higher refrigerant prices due to government-imposed production quotas and increased demand in China, alongside successful cost control measures and restructuring efforts, including the disposal of certain equity interests and share buy-backs.

Dongyue Group Limited Announces Upcoming Board Meeting for Financial Results Approval

Dongyue Group Limited has scheduled a board meeting for 27 March 2025 to approve the audited annual results for the year ending 31 December 2024, and to discuss the declaration of any final dividend. This announcement may influence investor expectations and market perception regarding the company’s financial health and future growth prospects.