Dongyue Group Limited (0189) AI Stock Analysis

• Market Cap: HK$18.88B
• Dividend Yield: 0.87%
• Average Volume (3M): 16.07M
• Price to Earnings (P/E): 22.6
• Beta (1Y): 1.04
• Revenue Growth: -4.04%
• EPS Growth: 44.12%
• Country: HK
• Employees: 6,922
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.33
• Shares Outstanding: 1,732,711,700
• 10 Day Avg. Volume: 13,245,354
• 30 Day Avg. Volume: 16,072,442
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 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$12.00
• Price Target Upside: 5.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: HK$12.00 ▲(5.26% Upside)

The stock of Dongyue Group Limited scores moderately due to strong technical momentum and positive market trends, despite facing challenges with financial performance and valuation. Financial stability is supported by a strong equity position and low leverage, but declining revenues and lack of cash flow data pose risks. The valuation suggests a potential overvaluation, limiting attractiveness at the current price.

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 a wide range of chemical products. The company's key revenue streams include the sale of refrigerants, which are used in air conditioning and refrigeration systems, and polymers, which are used in a variety of applications such as automotive parts and packaging materials. The Organic Silicone segment contributes to earnings by supplying silicone products that are used in construction, electronics, and personal care. Additionally, Dongyue's production of dichloromethane, PVC, and liquid alkali provides significant income, serving industries like pharmaceuticals and construction. Strategic partnerships and agreements with other companies and distributors further enhance Dongyue's revenue by expanding its market reach and customer base. Factors such as global demand for chemical products, advancements in technology, and regulatory compliance also play crucial roles in the company's financial performance.

Dongyue Group Limited Financial Statement Overview

Summary

Moderate financial health with stable margins and strong equity position. However, declining revenues and lack 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.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.18B	14.49B	20.03B	15.84B	10.04B
Gross Profit	3.07B	2.44B	6.51B	5.22B	2.24B
EBITDA	2.37B	1.87B	4.62B	3.81B	1.58B
Net Income	810.80M	707.79M	3.86B	2.07B	772.17M
Balance Sheet
Total Assets	20.94B	21.95B	24.64B	21.60B	17.12B
Cash, Cash Equivalents and Short-Term Investments	2.75B	3.13B	5.45B	5.25B	4.43B
Total Debt	26.44M	32.05M	43.63M	664.26M	1.95B
Total Liabilities	3.47B	5.01B	6.15B	5.96B	6.59B
Stockholders Equity	12.11B	14.79B	16.08B	13.12B	8.54B
Cash Flow
Free Cash Flow	271.13M	-536.56M	1.24B	-43.38M	525.19M
Operating Cash Flow	2.07B	1.38B	5.08B	3.91B	2.26B
Investing Cash Flow	-1.50B	-2.63B	-2.91B	-4.09B	-1.96B
Financing Cash Flow	-648.37M	-1.51B	-1.96B	999.52M	1.03B

Dongyue Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.40
• 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 11.4 is above the 20-day moving average (MA) of 10.72, above the 50-day MA of 10.14, and above the 200-day MA of 8.53, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 66.78 is Neutral, neither overbought nor oversold. The STOCH value of 89.47 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
0746	78 Outperform	HK$4.12B	7.24	9.36%	5.98%	-3.73%	6.09%
0189	68 Neutral	HK$18.88B	22.65	6.03%	0.87%	-4.04%	44.12%
Sector *	61 Neutral	$9.92B	5.61	1.58%	3.19%	3.03%	-41.96%
45Y	―	€1.16B	406.67	0.15%	―	―	―
6616	68 Neutral	HK$6.19B	23.58	7.43%	―	52.49%	27.79%
2198	58 Neutral	HK$2.26B	3.80	11.49%	―	47.32%	492.76%
1702	57 Neutral	HK$825.86M	9.00	4.75%	2.41%	-13.75%	-56.14%

Dongyue Group Limited Corporate Events

Dongyue Group Adjusts Proceeds Allocation Amid Market Shifts

Dongyue Group Limited announced a change in the use of proceeds from its recent share placing, initially intended to enhance production capacity for PVDF and PTFE. Due to increased market supply and lower-than-expected returns, the company will redirect unutilized funds towards increasing production of high-purity PTFE for the semiconductor industry, transforming production lines for green and intelligent operations, and initiating a pilot project for a new-type coolant. This strategic shift aims to position the company better in the high-end fluoropolymers and new-type coolant markets, potentially impacting its future market competitiveness and stakeholder interests.

The most recent analyst rating on (HK:0189) stock is a Buy with a HK$10.60 price target. To see the full list of analyst forecasts on Dongyue Group Limited stock, see the HK:0189 Stock Forecast page.

Dongyue Group Schedules Board Meeting for Interim Results

Dongyue Group Limited has announced that its board of directors will convene on August 26, 2025, to approve the unaudited interim results for the first half of the year and discuss the potential declaration of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and strategic decisions, potentially impacting its market position and stakeholder interests.

The most recent analyst rating on (HK:0189) stock is a Buy with a HK$10.60 price target. To see the full list of analyst forecasts on Dongyue Group Limited stock, see the HK:0189 Stock Forecast page.

Dongyue Group Limited Expects Significant Profit Surge

Dongyue Group Limited has announced a significant expected increase in net profit for the six months ending June 2025, attributed mainly to a rise in refrigerant product prices. This positive profit alert suggests a 150% increase compared to the same period in the previous year, signaling strong performance and potential growth opportunities for stakeholders.

The most recent analyst rating on (HK:0189) stock is a Buy with a HK$9.89 price target. To see the full list of analyst forecasts on Dongyue Group Limited stock, see the HK:0189 Stock Forecast page.

Dongyue Group’s Associated Company Seeks IPO on Shanghai’s STAR Market

Dongyue Group Limited announced that its associated company, Shandong Dongyue Future Hydrogen Energy Materials Co., Ltd., has submitted an application for an initial public offering on the Science and Technology Innovation Board of the Shanghai Stock Exchange. This move could potentially enhance the company’s market presence and influence in the hydrogen energy materials sector, although the approval process remains uncertain.

The most recent analyst rating on (HK:0189) stock is a Buy with a HK$10.60 price target. To see the full list of analyst forecasts on Dongyue Group Limited stock, see the HK:0189 Stock Forecast page.

Dongyue Group Limited Successfully Passes All Resolutions at AGM

Dongyue Group Limited held its Annual General Meeting on June 5, 2025, where all proposed resolutions were passed by the shareholders. Key resolutions included the adoption of financial statements, re-election of directors, authorization of directors’ remuneration, reappointment of auditors, and declaration of a final dividend. Additionally, mandates were granted to the directors for share allotment and repurchase, reflecting strong shareholder support for the company’s strategic decisions.

The most recent analyst rating on (HK:0189) stock is a Buy with a HK$9.89 price target. To see the full list of analyst forecasts on Dongyue Group Limited stock, see the HK:0189 Stock Forecast page.