Dongguang Chemical Ltd. (1702) AI Stock Analysis

• Market Cap: HK$931.42M
• Dividend Yield: 2.41%
• Average Volume (3M): 533.00
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.12
• Revenue Growth: -13.75%
• EPS Growth: -56.14%
• Country: HK
• Employees: 1,252
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals
• EPS (TTM): -0.01
• Shares Outstanding: 620,944,000
• 10 Day Avg. Volume: 1,600
• 30 Day Avg. Volume: 533
• 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$1.50
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: HK$1.50 ▲(0.00% Upside)

The overall stock score of 57 reflects mixed financial performance, with a strong balance sheet but challenges in revenue and cash flow management. Technical indicators show bearish trends, while valuation metrics suggest a fair market value.

Dongguang Chemical Ltd. Business Overview & Revenue Model

Company Description

Dongguang Chemical Ltd. (1702) is a prominent player in the chemical industry, specializing in the production and distribution of chemical products. The company operates across various sectors, focusing on manufacturing specialty chemicals utilized in a wide range of applications, including agriculture, pharmaceuticals, and industrial processes. Their core product offerings are tailored to meet the needs of diverse industries, ensuring high-quality solutions that enhance operational efficiency and productivity.

How the Company Makes Money

Dongguang Chemical Ltd. generates revenue primarily through the sale of its chemical products to various industries. The company's key revenue streams include direct sales to agricultural businesses, pharmaceutical companies, and industrial manufacturers who require specialized chemical solutions. Additionally, Dongguang Chemical Ltd. may form strategic partnerships and collaborations with other companies to enhance its market reach and product offerings, thereby contributing to its earnings growth. The company's ability to innovate and provide customized chemical solutions also plays a significant role in attracting and retaining clients, further driving its financial success.

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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.58B	2.92B	3.13B	2.88B	1.96B
Gross Profit	172.05M	332.96M	329.61M	458.81M	234.65M
EBITDA	260.67M	406.97M	412.42M	564.65M	351.78M
Net Income	84.61M	190.08M	194.38M	266.08M	125.28M
Balance Sheet
Total Assets	2.02B	2.10B	1.87B	1.84B	1.76B
Cash, Cash Equivalents and Short-Term Investments	702.10M	797.81M	535.47M	425.06M	367.10M
Total Debt	28.14M	28.04M	28.36M	124.29M	319.40M
Total Liabilities	211.98M	334.04M	248.69M	361.52M	524.98M
Stockholders Equity	1.80B	1.76B	1.61B	1.47B	1.23B
Cash Flow
Free Cash Flow	-68.89M	302.42M	261.12M	271.56M	134.97M
Operating Cash Flow	119.76M	372.77M	306.18M	350.37M	312.88M
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: Negative
• Last Price: 1.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1702, the sentiment is Negative. The current price of 1.5 is below the 20-day moving average (MA) of 1.60, below the 50-day MA of 1.65, and below the 200-day MA of 1.74, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 37.98 is Neutral, neither overbought nor oversold. The STOCH value of 67.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1702.

Dongguang Chemical Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	HK$18.24B	5.34	-7.29%	3.71%	-4.08%	-49.01%
2198	58 Neutral	HK$2.26B	3.80	11.49%	―	47.32%	492.76%
1702	57 Neutral	HK$931.42M	10.16	4.75%	2.41%	-13.75%	-56.14%
0609	54 Neutral	HK$1.17B	16.02	2.75%	3.70%	-11.89%	-69.45%
9933	48 Neutral	HK$1.55B	104.76	2.19%	―	17.98%	374.19%
0954	46 Neutral	HK$169.50M	―	-10.94%	―	-9.85%	20.22%
0827	36 Underperform	HK$156.73M	―	-76.72%	―	-12.18%	-222.34%

Dongguang Chemical Ltd. Corporate Events

Dongguang Chemical Limited Forms Nomination Committee to Strengthen Governance

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

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

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.