Dongyue Group Limited (0189) AI Stock Analysis

• Market Cap: HK$20.29B
• Dividend Yield: 0.98%
• Average Volume (3M): 14.24M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.11
• Revenue Growth: -1.43%
• EPS Growth: 113.67%
• Country: HK
• Employees: 6,922
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.52
• Shares Outstanding: 1,732,711,700
• 10 Day Avg. Volume: 20,413,382
• 30 Day Avg. Volume: 14,237,343
• PEG Ratio: 0.38
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 47.89
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: HK$13.00 ▲(19.71% Upside)

The overall stock score of 62 reflects moderate financial performance with stable margins and a strong equity position, but concerns about declining revenues and cash flow sustainability. Technical analysis indicates potential bearish trends, while valuation appears fair with a reasonable P/E ratio. The lack of earnings call and corporate events data limits additional insights.

Positive Factors

Low leverage and strong equity position

Extremely low leverage and a high equity ratio reduce financial risk and increase balance-sheet flexibility. This enables Dongyue to fund capex, R&D or withstand cyclical downturns without heavy refinancing, supporting multi-quarter strategic investments and resilience.

Stable operational margins

Sustained gross and EBITDA margins indicate structural cost control and pricing power in specialty fluorochemical products. Stable margins support long-term cash generation potential and allow continued investment in product development even if volumes fluctuate.

Diversified end markets and R&D focus

Exposure to automotive, electronics and construction creates multi-industry demand channels for fluorochemicals. Combined with stated R&D commitment, this fosters product differentiation, higher barriers to entry and durable demand from industrial customers over multiple quarters.

Negative Factors

Declining revenue trend

A near-30% revenue contraction over two years erodes scale, reduces operating leverage, and weakens negotiating power with suppliers and customers. Persistent top-line decline can impair long-term margin recovery, R&D funding and the company’s ability to execute strategic initiatives.

Cash flow sustainability concerns

Missing 2024 cash flow data plus prior negative free cash flow raise uncertainty about internal funding of operations and investments. Chronic or opaque cash generation undermines the firm’s ability to self-fund capex/R&D and increases reliance on external financing.

Modest profitability and returns

Low net margins and modest ROE suggest limited capital efficiency and constrained ability to generate high shareholder returns. Over the medium term this limits retained earnings for reinvestment and may hamper competitive reinvestment against higher-return peers.

Dongyue Group Limited Business Overview & Revenue Model

Company Description

Dongyue Group Limited, an investment holding company, manufactures, distributes, and sells polymers, organic silicone, refrigerants, dichloromethane, polyvinyl chloride (PVC), liquid alkali, and other products in the People's Republic of China. The company operates through Polymers; Refrigerants; Organic Silicone; Dichloromethane, PVC and Liquid Alkali; Property Development; and Other Operations segments. It offers fluoride fine chemicals, chloride methyl chlorine and alkali, and fluoride salt and acid products, as well as polytetrafluoroethylene, methane chloride, anhydrous fluoride, fluorite, silicon rubber, fluoropolymer, ammonium bifluoride, hydrofluoric acid, and bromine products. The company also engages in the development of residential properties; sale of chemical products; and provision of sewage disposal and environmental monitoring services. It also operates in Japan, South Korea, India, Singapore, Thailand, the United Arab Emirates, Pakistan, Malaysia, Kuwait, Saudi Arabia, Indonesia, Israel, the Philippines, Vietnam, Turkey, and internationally. The company was founded in 1987 and is headquartered in Zibo, the People's Republic of China.

How the Company Makes Money

Dongyue Group Limited generates revenue through the production and sale of its fluorine-based chemical products. Key revenue streams include the manufacture of refrigerants, fluoropolymers, and specialty chemicals, which are sold to a diverse range of industries. The company benefits from strong demand in the automotive and electronics sectors, where its products are essential for manufacturing high-quality components. Significant partnerships with other industry players enhance its market reach and operational capabilities. Additionally, Dongyue's commitment to research and development allows it to innovate and introduce new products, further expanding its revenue potential.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.38B	14.18B	14.49B	20.03B	15.84B	10.04B
Gross Profit	3.89B	3.07B	2.44B	6.51B	5.22B	2.24B
EBITDA	3.18B	2.37B	1.87B	4.62B	3.81B	1.58B
Net Income	1.28B	810.80M	707.79M	3.86B	2.07B	772.17M
Balance Sheet
Total Assets	22.13B	20.94B	21.95B	24.64B	21.60B	17.12B
Cash, Cash Equivalents and Short-Term Investments	3.77B	2.75B	3.13B	5.45B	5.25B	4.43B
Total Debt	70.56M	26.44M	32.05M	43.63M	664.26M	1.95B
Total Liabilities	3.51B	3.47B	5.01B	6.15B	5.96B	6.59B
Stockholders Equity	12.98B	12.11B	14.79B	16.08B	13.12B	8.54B
Cash Flow
Free Cash Flow	309.32M	278.14M	-536.56M	1.24B	-43.38M	525.19M
Operating Cash Flow	1.66B	2.07B	1.38B	5.08B	3.91B	2.26B
Investing Cash Flow	-1.32B	-1.50B	-2.63B	-2.91B	-4.09B	-1.96B
Financing Cash Flow	-192.98M	-648.37M	-1.51B	-1.96B	999.52M	1.03B

Dongyue Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 10.86 is below the 20-day moving average (MA) of 11.76, below the 50-day MA of 10.97, and above the 200-day MA of 10.67, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 60.26 is Neutral, neither overbought nor oversold. The STOCH value of 72.57 is Neutral, 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
6616	74 Outperform	HK$11.05B	51.39	5.86%	―	29.64%	-3.91%
0746	73 Outperform	HK$4.98B	8.76	9.36%	6.70%	-3.73%	6.09%
0189	62 Neutral	HK$20.29B	14.68	10.43%	0.98%	-1.43%	113.67%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1702	59 Neutral	HK$1.03B	14.37	3.61%	2.20%	-8.51%	-68.34%
1907	54 Neutral	HK$12.25B	-172.96	-0.52%	1.16%	-15.17%	-125.24%
2198	50 Neutral	HK$5.47B	7.25	13.87%	―	9.20%	213.87%

Dongyue Group Limited Corporate Events

Dongyue Subsidiary Warns of Expected 2025 Net Loss

Dongyue Group Limited has disclosed that its non-wholly owned subsidiary, Shandong Dongyue Organosilicone Materials Co., Ltd., expects to report a net loss of between RMB13.7 million and RMB25.4 million for the year ending 31 December 2025, with a projected net loss after non-recurring items of between RMB1.6 million and RMB3.1 million. The company cautioned shareholders and potential investors that these figures are based on internal management records, have not been audited or reviewed under the accounting standards adopted by the Group, and should therefore be treated with care when assessing the Group’s financial outlook and valuing its securities.

The most recent analyst rating on (HK:0189) stock is a Hold with a HK$13.50 price target. To see the full list of analyst forecasts on Dongyue Group Limited stock, see the HK:0189 Stock Forecast page.

Dongyue Group Renews Connected-Party Raw Materials and Services Framework with Future Materials

Dongyue Group Limited has renewed a one‑year framework agreement governing the sale and purchase of raw materials, products and ancillary services between its wholly owned subsidiary Dongyue Fluorosilicone Technology (and designated associates) and related company Future Materials, effective from 1 January 2026 to 31 December 2026. The arrangement, classified as a continuing connected transaction under Hong Kong listing rules due to Chairman Mr. Zhang’s significant stake in Future Materials, enables Dongyue entities to supply raw materials and utilities such as liquid alkali, steam and electricity to Future Materials while also procuring hydrogen-related raw materials, products and services for the group’s own production; the deal remains small enough to require disclosure but not independent shareholder approval, indicating ongoing operational integration with a key related-party customer and supplier while maintaining regulatory compliance.

The most recent analyst rating on (HK:0189) stock is a Hold with a HK$11.50 price target. To see the full list of analyst forecasts on Dongyue Group Limited stock, see the HK:0189 Stock Forecast page.

Dongyue Group Revamps Nomination Committee to Meet New Governance Code

Dongyue Group Limited has reshaped the composition of its nomination committee by appointing executive director Ms. Chung Tak Lai and independent non-executive director Mr. Ma Zhizhong as members, effective 31 December 2025. The committee now includes a director of a different gender while maintaining a majority of independent non-executive directors, aligning the company with the amended Corporate Governance Code of the Hong Kong Stock Exchange; the board expects these changes, together with updated terms of reference for the committee, to strengthen board diversity, enhance effectiveness, and further improve overall corporate governance practices.

The most recent analyst rating on (HK:0189) stock is a Hold with a HK$11.50 price target. To see the full list of analyst forecasts on Dongyue Group Limited stock, see the HK:0189 Stock Forecast page.

Dongyue Group Sets Out Board and Committee Line-Up to Strengthen Governance

Dongyue Group Limited has announced the current composition of its board of directors, led by Chairman and Chief Executive Officer Zhang Jianhong, President Wang Weidong and Vice President and Chief Financial Officer Zhang Zhefeng, supported by one additional executive director and three independent non-executive directors. The company has also detailed the membership of its five key board committees—Audit, Remuneration, Nomination, Corporate Governance and Risk Management—underscoring a delineated governance and oversight structure that places independent directors in pivotal monitoring roles, a move that reinforces compliance with corporate governance best practices and may reassure investors about the robustness of its risk control, remuneration oversight and board appointment processes.

The most recent analyst rating on (HK:0189) stock is a Hold with a HK$11.50 price target. To see the full list of analyst forecasts on Dongyue Group Limited stock, see the HK:0189 Stock Forecast page.

Dongyue Group Updates Nomination Committee Mandate to Strengthen Governance and Board Diversity

Dongyue Group Limited has revised and adopted updated terms of reference for its Nomination Committee, effective 31 December 2025, formalizing the committee’s constitution, membership requirements, and meeting procedures. The new terms emphasize a majority of independent non-executive directors, gender diversity within the committee, and clear authority to obtain external professional advice, while assigning duties that include annual reviews of board composition and skills, identification and recommendation of director candidates, assessment of director independence, succession planning for key leadership roles, regular board performance evaluations, and oversight of board diversity policies and related disclosures, reinforcing the company’s corporate governance framework and transparency to shareholders.

The most recent analyst rating on (HK:0189) stock is a Hold with a HK$11.50 price target. To see the full list of analyst forecasts on Dongyue Group Limited stock, see the HK:0189 Stock Forecast page.