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Dongguang Chemical Ltd.
(1702)
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Rating:70Outperform
Price Target:
HK$2.00
▲(6.38% Upside)
Action:Reiterated
Date:10/08/26
The score is led by strong balance-sheet quality and an inexpensive valuation (low P/E with a dividend), offset by weak multi-year revenue trends and recent negative free cash flow. Technicals are supportive but somewhat overheated due to an overbought RSI.
Positive Factors
Conservative balance sheet
Very low leverage and a growing equity base provide a substantial financial cushion. This conservative funding structure limits balance-sheet risk, reduces sensitivity to financing costs, and preserves flexibility to manage operating volatility over the next several quarters.
Negative Factors
Multi-year revenue contraction
A prolonged decline in revenue signals weakening top-line momentum and makes future profit growth harder to sustain. The sharp latest-period contraction also raises the risk that the 2025 earnings recovery may not translate into durable expansion without renewed business growth.
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 conservative funding structure limits balance-sheet risk, reduces sensitivity to financing costs, and preserves flexibility to manage operating volatility over the next several quarters.
Read all positive factors
Dongguang Chemical Ltd. (1702) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.07B
Dividend Yield2.06%
Average Volume (3M)4.53K
Price to Earnings (P/E)5.7
Beta (1Y)-0.18
Revenue Growth3.26%
EPS Growth181.56%
CountryHK
Employees1,256
SectorBasic Materials
Sector Strength58
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)0.29
Shares Outstanding620,944,000
10 Day Avg. Volume0
30 Day Avg. Volume4,533
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 | 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 | 307.47M | 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
Positive
1.88
Price Trends
1.63
Positive
1.63
Positive
1.69
Positive
Market Momentum
0.04
Negative
77.86
Negative
64.38
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 1.74, above the 50-day MA of 1.63, and above the 200-day MA of 1.69, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 77.86 is Negative, neither overbought nor oversold. The STOCH value of 64.38 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$1.07B | 5.71 | 9.19% | 2.06% | 3.26% | 181.56% | |
70 Outperform | HK$18.56B | 8.70 | 12.67% | 2.68% | 7.79% | 48.48% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | HK$4.23B | 4.84 | 13.63% | 4.05% | 0.90% | 16.54% | |
59 Neutral | HK$900.38M | 15.38 | 2.08% | 2.91% | 16.60% | -12.13% | |
50 Neutral | HK$11.37B | -16.93 | -18.41% | 0.83% | 165.47% | -398.61% | |
42 Neutral | HK$274.09M | -0.30 | 214.56% | ― | 1.56% | -21.85% |
* Basic Materials Sector Average
HK:1702
Dongguang Chemical Ltd.
1.94
0.28
17.15%
HK:0827
Ko Yo Chemical (Group) Limited
0.04
<0.01
31.03%
HK:0609
Tiande Chemical Holdings Limited
1.03
-0.43
-29.36%
HK:0189
Dongyue Group Limited
11.20
-1.26
-10.13%
HK:2198
China Sanjiang Fine Chemicals Co., Ltd.
3.70
0.74
25.00%
HK:6616
Global New Material International Holdings Limited
9.32
4.71
102.17%
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...
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.