Want to see HK:1702 full AI Analyst Report?
Top Page
Dongguang Chemical Ltd.
(1702)
Select Model
Select Model
Rating:72Outperform
Price Target:
HK$2.00
▲(6.38% Upside)
Action:Reiterated
Date:08/28/26
The score is driven primarily by solid underlying financial stability (very low leverage and strong balance sheet) and an attractive valuation (low P/E with a dividend). Offsetting these positives are weaker operating fundamentals (multi-year revenue decline) and strained shareholder cash generation (recent negative free cash flow), while technicals show an uptrend but with an overbought RSI that raises near-term pullback risk.
Positive Factors
Conservative Balance Sheet
Very low leverage and a growing equity base provide a substantial financial cushion. This reduces refinancing risk, supports resilience through agricultural-input cycles, and gives the company flexibility to fund operations without excessive dependence on creditors.
Negative Factors
Multi-Year Revenue Decline
Persistent top-line contraction points to weakening demand, reduced market share, or cyclical exposure in the operating base. Without a durable growth engine, lower revenue can limit scale benefits and make future margin recovery less reliable.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage and a growing equity base provide a substantial financial cushion. This reduces refinancing risk, supports resilience through agricultural-input cycles, and gives the company flexibility to fund operations without excessive dependence on creditors.
Read all positive factors
Dongguang Chemical Ltd. (1702) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.04B
Dividend Yield2.22%
Average Volume (3M)3.60K
Price to Earnings (P/E)5.0
Beta (1Y)-0.11
Revenue Growth3.26%
EPS Growth181.56%
CountryHK
Employees1,225
SectorBasic Materials
Sector Strength58
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)0.23
Shares Outstanding620,944,000
10 Day Avg. Volume10,400
30 Day Avg. Volume3,600
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.55
Price to Sales (P/S)0.44
P/FCF Ratio-44.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Dongguang Chemical Ltd. Business Overview & Revenue Model
Company Description
Dongguang Chemical Limited, an investment holding company, manufactures and sells urea primarily in the People’s Republic of China. The company offers coal-based urea for use as a source of nitrogen in fertilizers and industrial applications, such...
Dongguang Chemical Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.38B | 2.58B | 2.92B | 3.13B | 2.88B |
| Gross Profit | 199.83M | 172.05M | 332.96M | 329.61M | 458.81M |
| EBITDA | 269.85M | 260.67M | 406.97M | 412.42M | 564.65M |
| Net Income | 140.02M | 84.61M | 190.08M | 194.38M | 266.08M |
Balance Sheet | |||||
| Total Assets | 2.22B | 2.02B | 2.10B | 1.87B | 1.84B |
| Cash, Cash Equivalents and Short-Term Investments | 679.07M | 702.10M | 797.81M | 535.47M | 425.06M |
| Total Debt | 73.67M | 28.14M | 28.04M | 28.36M | 124.29M |
| Total Liabilities | 283.62M | 211.98M | 334.04M | 248.69M | 361.52M |
| Stockholders Equity | 1.92B | 1.80B | 1.76B | 1.61B | 1.47B |
Cash Flow | |||||
| Free Cash Flow | -23.34M | -68.89M | 302.42M | 261.12M | 271.56M |
| Operating Cash Flow | 299.47M | 119.76M | 372.77M | 306.18M | 350.37M |
| Investing Cash Flow | -319.66M | -171.00M | -62.89M | -36.38M | -48.25M |
| Financing Cash Flow | -20.36M | -50.99M | -53.16M | -159.45M | -238.97M |
Dongguang Chemical Ltd. Technical Analysis
Positive
1.88
Price Trends
1.52
Positive
1.67
Positive
1.69
Negative
Market Momentum
0.07
Negative
62.70
Neutral
40.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1702, the sentiment is Positive. The current price of 1.88 is above the 20-day moving average (MA) of 1.57, above the 50-day MA of 1.52, and above the 200-day MA of 1.69, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 62.70 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1702.
Dongguang Chemical Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$1.04B | 4.96 | 9.19% | 2.22% | 3.26% | 181.56% | |
70 Outperform | HK$21.56B | 10.13 | 12.67% | 2.29% | 7.79% | 48.48% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | HK$4.80B | 5.37 | 13.63% | 3.77% | 0.90% | 16.54% | |
51 Neutral | HK$922.34M | 15.80 | 2.08% | 2.84% | 16.60% | -12.13% | |
50 Neutral | HK$12.61B | -18.40 | -18.41% | 0.83% | 165.47% | -398.61% | |
42 Neutral | HK$323.29M | -0.36 | 214.56% | ― | 1.56% | -21.85% |
* Basic Materials Sector Average
HK:1702
Dongguang Chemical Ltd.
1.80
0.62
51.90%
HK:0827
Ko Yo Chemical (Group) Limited
0.05
0.01
45.16%
HK:0609
Tiande Chemical Holdings Limited
1.05
-0.33
-24.02%
HK:0189
Dongyue Group Limited
13.11
0.62
4.95%
HK:2198
China Sanjiang Fine Chemicals Co., Ltd.
4.04
2.32
135.00%
HK:6616
Global New Material International Holdings Limited
10.33
5.64
120.26%
Dongguang Chemical Ltd. Corporate Events
Dongguang Chemical Delivers Strong Profit Growth in First-Half 2026 Results
Aug 27, 2026
Dongguang Chemical Limited reported unaudited interim revenue of RMB1,210.3 million for the six months ended 30 June 2026, up slightly from RMB1,180.8 million a year earlier, reflecting modest top-line growth in its chemical product business. The ...
Dongguang Chemical Flags 55% Interim Profit Surge on Revenue Growth and Urea Hedging Gains
Aug 19, 2026
Dongguang Chemical Limited has issued a positive profit alert, indicating that the group expects net profit for the six months ended 30 June 2026 to rise by about 55% compared with the same period in 2025. The improvement is attributed to higher r...
Dongguang Chemical Sets August Board Meeting to Review Interim Results and Dividend
Aug 17, 2026
Dongguang Chemical Limited has scheduled a board meeting for 27 August 2026 to review and approve its unaudited consolidated financial statements for the six months ended 30 June 2026. The board will also consider the declaration of an interim div...
Dongguang Chemical Revamps Independent Board Line-up to Bolster Governance
Jun 22, 2026
Dongguang Chemical Limited announced board changes effective 22 June 2026, including the resignation of long-serving independent non-executive director Ms. Lin Xiuxiang. Her departure also ends her roles chairing the audit and remuneration committ...
Dongguang Chemical Sets Out Board and Committee Governance Structure
Jun 22, 2026
Dongguang Chemical Limited has outlined the composition of its board of directors, listing four executive directors, including chairman Wang Chunmeng, and three independent non-executive directors. This structure underscores the company’s ad...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.