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Dongguang Chemical Ltd. (1702) AI Stock Analysis
Dongguang Chemical Ltd.
(HKEX:1702)
The overall score is driven primarily by Dongguang Chemical’s conservative balance sheet and consistently positive earnings, which support resilience despite a more challenging operating environment. The low P/E ratio and reasonable dividend yield further enhance the investment case by indicating an undemanding valuation relative to its profitability. These strengths are partly offset by declining revenues, reduced returns on equity, recent negative free cash flow, and overbought technical readings that point to potential near‑term volatility and limited upside from current levels.
Dongguang Chemical Ltd. (1702) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 1.06B
- Dividend Yield
- 2.35%
- Average Volume (3M)
- 22.80K
- Price to Earnings (P/E)
- 5.0
- Beta (1Y)
- -0.18
- Revenue Growth
- 3.26%
- EPS Growth
- 181.56%
- Country
- Hong Kong
- Employees
- 1,256
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Agricultural Inputs
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 as...
Dongguang Chemical Ltd. Financial Statement Overview
Summary
Financial performance is sound, supported by consistently positive earnings and a very low‑debt, strengthening balance sheet, but constrained by multi‑year revenue declines, lower returns on equity, and recent negative free cash flow.
Income Statement
64PositiveBalance Sheet
78PositiveCash Flow
57Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.41B | 2.38B | 2.58B | 2.92B | 3.13B | 2.88B |
| Gross Profit | 226.66M | 199.83M | 172.05M | 332.96M | 329.61M | 458.81M |
| EBITDA | 308.87M | 273.39M | 260.67M | 406.97M | 412.42M | 564.65M |
| Net Income | 179.92M | 140.02M | 84.61M | 190.08M | 194.38M | 266.08M |
Balance Sheet | ||||||
| Total Assets | 2.51B | 2.22B | 2.02B | 2.10B | 1.87B | 1.84B |
| Cash, Cash Equivalents and Short-Term Investments | 755.05M | 679.07M | 702.10M | 797.81M | 535.47M | 425.06M |
| Total Debt | 49.39M | 73.67M | 28.14M | 28.04M | 28.36M | 124.29M |
| Total Liabilities | 501.75M | 283.62M | 211.98M | 334.04M | 248.69M | 361.52M |
| Stockholders Equity | 1.99B | 1.92B | 1.80B | 1.76B | 1.61B | 1.47B |
Cash Flow | ||||||
| Free Cash Flow | -49.95M | -23.34M | -68.89M | 302.42M | 261.12M | 271.56M |
| Operating Cash Flow | 390.22M | 299.47M | 119.76M | 372.77M | 306.18M | 350.37M |
| Investing Cash Flow | -400.27M | -319.66M | -171.00M | -62.89M | -36.38M | -48.25M |
| Financing Cash Flow | -14.53M | -20.36M | -50.99M | -53.16M | -159.45M | -238.97M |
Dongguang Chemical Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1702, the sentiment is Neutral. The current price of 1.70 is below the 20-day moving average (MA) of 1.73, below the 50-day MA of 1.72, and below the 200-day MA of 1.70, indicating a bearish trend. The MACD of -0.00 indicates Positive momentum. The RSI at 46.93 is Neutral, neither overbought nor oversold. The STOCH value of 31.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1702.
Dongguang Chemical Ltd. Peers Comparison
Overall Rating
- HK:170272Outperform
HK:018967Neutral
HK:219859Neutral
HK:661656Neutral
HK:060953Neutral
HK:082742Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:1702 | 72Outperform | HKD 1.06B | 4.97 | 9.19% | 2.35% | 3.26% | 181.56% |
| HK:0189 | 67Neutral | HKD 16.00B | 7.45 | 12.67% | 3.11% | 7.79% | 48.48% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| HK:2198 | 59Neutral | HKD 4.12B | 4.58 | 13.63% | 4.26% | 0.90% | 16.54% |
| HK:6616 | 56Neutral | HKD 10.91B | -15.78 | -18.41% | ― | 165.47% | -398.61% |
| HK:0609 | 53Neutral | HKD 860.85M | 14.61 | 2.08% | 3.05% | 16.60% | -12.13% |
| HK:0827 | 42Neutral | HKD 217.87M | -0.24 | 214.56% | ― | 1.56% | -21.85% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:1702 | Dongguang Chemical Ltd. | 1.70 | -0.21 | -10.99% | |
| HK:0827 | Ko Yo Chemical (Group) Limited | 0.03 | 0.00 | 14.81% | |
| HK:0609 | Tiande Chemical Holdings Limited | 0.98 | -0.38 | -28.10% | |
| HK:0189 | Dongyue Group Limited | 9.66 | -0.13 | -1.36% | |
| HK:2198 | China Sanjiang Fine Chemicals Co., Ltd. | 3.52 | 1.20 | 51.51% | |
| HK:6616 | Global New Material International Holdings Limited | 8.74 | 2.58 | 41.88% |
Dongguang Chemical Ltd. Corporate Events
Dongguang Chemical Delivers Strong Profit Growth in First-Half 2026 Results
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 gro...
Dongguang Chemical Flags 55% Interim Profit Surge on Revenue Growth and Urea Hedging Gains
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 reve...
Dongguang Chemical Sets August Board Meeting to Review Interim Results and Dividend
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 divide...
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.
Date of analysis: Oct 08, 2026