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Dongguang Chemical Ltd. (HK:1702)
:1702
Hong Kong Market

Dongguang Chemical Ltd. (1702) AI Stock Analysis

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HK

Dongguang Chemical Ltd.

(1702)

Rating:69Neutral
Price Target:
Dongguang Chemical Ltd. scores moderately at 69, primarily driven by a strong balance sheet and fair valuation, offering attractive dividends. However, revenue growth challenges and cash flow inefficiencies weigh down the score. Technical indicators show stable momentum, supporting the stock's position but not significantly enhancing its score.

Dongguang Chemical Ltd. (1702) vs. iShares MSCI Hong Kong ETF (EWH)

Dongguang Chemical Ltd. Business Overview & Revenue Model

Company DescriptionDongguang Chemical Ltd. (1702) is a prominent player in the chemical manufacturing industry, focusing primarily on the production and distribution of agricultural chemicals. The company specializes in the development of fertilizers and other agrochemical products that enhance crop yield and quality. With a commitment to sustainable agricultural practices, Dongguang Chemical Ltd. serves a diverse clientele ranging from small-scale farmers to large agricultural enterprises.
How the Company Makes MoneyDongguang Chemical Ltd. generates revenue through the sale of its agrochemical products, including a wide range of fertilizers and crop protection solutions. The company leverages its extensive distribution network to reach both domestic and international markets, ensuring broad access to its products. Key revenue streams include direct sales to agricultural businesses, partnerships with distributors and retailers, and contracts with government agencies for agricultural supply. The company's earnings are significantly influenced by agricultural trends, commodity prices, and seasonal demand, along with its ability to innovate and introduce new product lines that meet evolving market needs.

Dongguang Chemical Ltd. Financial Statement Overview

Summary
Dongguang Chemical Ltd. demonstrates a mixed financial performance. While the balance sheet is strong with low leverage, the income statement reflects challenges in revenue growth and profitability. Cash flow management also presents areas for improvement, with declining free cash flow. The company should prioritize enhancing revenue growth and cash flow efficiency to improve overall financial health.
Income Statement
62
Positive
Dongguang Chemical Ltd. has faced declining revenues over the past year, with a revenue decrease from the previous period. The Gross Profit Margin is relatively low, indicating tight margins in operations. However, the company maintains positive EBIT and EBITDA margins, reflecting some operational efficiency. The Net Profit Margin has also decreased, showing challenges in maintaining profitability.
Balance Sheet
75
Positive
The company's balance sheet is stable with a low Debt-to-Equity Ratio, indicating conservative leverage. Stockholders' Equity is strong relative to total assets, enhancing financial stability. The Return on Equity is moderate, suggesting adequate but not exceptional returns on shareholders' funds. Overall, the balance sheet reflects a solid financial position with manageable debt levels.
Cash Flow
58
Neutral
Dongguang Chemical Ltd. experienced a decline in free cash flow, indicating potential cash management challenges. The Operating Cash Flow to Net Income Ratio is positive, suggesting effective cash generation relative to net income. However, the Free Cash Flow to Net Income Ratio is negative, highlighting issues in converting profits into free cash flow. The company should focus on improving cash flow efficiency.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.58B2.92B3.13B2.88B1.96B
Gross Profit172.05M332.96M329.61M458.81M234.65M
EBITDA260.67M406.97M412.42M564.65M351.78M
Net Income84.61M190.08M194.38M266.08M125.28M
Balance Sheet
Total Assets2.02B2.10B1.87B1.84B1.76B
Cash, Cash Equivalents and Short-Term Investments702.10M797.81M535.47M425.06M367.10M
Total Debt28.14M28.04M28.36M124.29M319.40M
Total Liabilities211.98M334.04M248.69M361.52M524.98M
Stockholders Equity1.80B1.76B1.61B1.47B1.23B
Cash Flow
Free Cash Flow-68.89M302.42M261.12M271.56M134.97M
Operating Cash Flow119.76M372.77M306.18M350.37M312.88M
Investing Cash Flow-171.00M-62.89M-36.38M-48.25M-169.90M
Financing Cash Flow-50.99M-53.16M-159.45M-238.97M-203.52M

Dongguang Chemical Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.70
Price Trends
50DMA
1.67
Positive
100DMA
1.65
Positive
200DMA
1.78
Negative
Market Momentum
MACD
0.01
Positive
RSI
77.24
Negative
STOCH
82.03
Negative
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 1.7 is above the 20-day moving average (MA) of 1.69, above the 50-day MA of 1.67, and below the 200-day MA of 1.78, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 77.24 is Negative, neither overbought nor oversold. The STOCH value of 82.03 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
HK$1.06B11.514.75%2.12%-13.75%-56.14%
58
Neutral
HK$16.70B4.48-5.92%5.25%-3.57%-61.41%
54
Neutral
HK$1.03B14.102.75%3.28%-11.89%-69.45%
53
Neutral
HK$2.03B3.4111.49%47.32%492.76%
53
Neutral
HK$2.03B3.4111.49%47.32%492.76%
46
Neutral
HK$148.32M-10.94%-9.85%20.22%
45
Neutral
HK$1.57B106.122.19%17.98%374.19%
45
Neutral
HK$1.57B106.122.19%17.98%374.19%
36
Underperform
HK$156.73M-76.72%-12.18%-222.34%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1702
Dongguang Chemical Ltd.
1.70
-0.16
-8.60%
HK:2198
China Sanjiang Fine Chemicals Co., Ltd.
1.73
0.17
10.90%
HK:2198
China Sanjiang Fine Chemicals Co., Ltd.
1.73
0.17
10.90%
HK:9933
GHW International
1.53
0.03
2.00%
HK:9933
GHW International
1.53
0.03
2.00%
HK:0954
Changmao Biochemical Engineering Co. Ltd. Class H
0.28
-0.14
-34.12%
HK:0827
Ko Yo Chemical (Group) Limited
0.02
-0.06
-75.00%
HK:0609
Tiande Chemical Holdings Limited
1.17
0.08
7.34%

Dongguang Chemical Ltd. Corporate Events

Dongguang Chemical Limited Forms Nomination Committee to Strengthen Governance
Jun 30, 2025

Dongguang Chemical Limited has established a Nomination Committee as part of its Board of Directors, effective from July 1, 2025. This committee, formed to enhance corporate governance, will consist of at least three members, including a diverse representation and a majority of independent non-executive directors, reflecting the company’s commitment to diversity and independence in its leadership structure.

Dongguang Chemical Ltd. Announces AGM Results and Director Retirement
May 22, 2025

Dongguang Chemical Ltd. announced the successful passing of all ordinary resolutions at its Annual General Meeting held on May 22, 2025. The meeting marked the retirement of non-executive director Ms. Chen Jimin and the re-election of directors, approval of financial statements, declaration of a final dividend, and reappointment of auditors. These resolutions are expected to strengthen the company’s governance and operational framework.

Dongguang Chemical Ltd. Announces Board Composition and Roles
May 22, 2025

Dongguang Chemical Ltd. has announced the composition of its board of directors and their respective roles within the company. The board includes both executive and independent non-executive directors, with specific members assigned to various committees such as Audit, Remuneration, Nomination, and Corporate Governance. This announcement provides clarity on the company’s governance structure, potentially impacting its strategic direction and stakeholder confidence.

Dongguang Chemical Ltd. Announces 2025 Annual General Meeting Agenda
Apr 22, 2025

Dongguang Chemical Ltd. has announced its annual general meeting scheduled for May 22, 2025, where key agenda items include the approval of financial statements, declaration of a final dividend, re-election of directors, and reappointment of auditors. The meeting will also address resolutions to authorize the board to manage share allotments, potentially impacting the company’s capital structure and shareholder value.

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.Date of analysis: May 03, 2025