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Dongguang Chemical Ltd.
(1702)
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Rating:66Neutral
Price Target:
HK$1.50
▼(-20.21% Downside)
Action:Reiterated
Date:07/02/26
Overall score is driven primarily by solid financial stability from a low-leverage balance sheet and an attractive valuation (low P/E with a dividend). These positives are tempered by weak technical conditions (downtrend signals and negative MACD) and mixed cash generation, with recent negative free cash flow despite improved operating cash flow in 2025.
Positive Factors
Conservative balance sheet
Very low leverage and steady equity growth provide a durable financial cushion, reducing solvency and refinancing risk. This conservative financing supports resilience through agricultural cycles, preserves strategic optionality for capex or M&A, and limits downside over the next several months.
Negative Factors
Multi-year revenue contraction
Persistent top-line decline erodes scale and operating leverage, limiting the company's ability to recover margins through volume. Structural revenue weakness makes profit recoveries fragile and may require product or market shifts to re-establish durable growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and steady equity growth provide a durable financial cushion, reducing solvency and refinancing risk. This conservative financing supports resilience through agricultural cycles, preserves strategic optionality for capex or M&A, and limits downside over the next several months.
Read all positive factors
Dongguang Chemical Ltd. (1702) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$894.16M
Dividend Yield2.2%
Average Volume (3M)3.73K
Price to Earnings (P/E)5.4
Beta (1Y)-0.08
Revenue Growth-7.41%
EPS Growth65.65%
CountryHK
Employees1,225
SectorBasic Materials
Sector Strength58
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)0.23
Shares Outstanding620,944,000
10 Day Avg. Volume2,800
30 Day Avg. Volume3,733
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 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.38B | 2.58B | 2.92B | 3.13B | 2.88B |
| Gross Profit | 199.83M | 172.05M | 332.96M | 329.61M | 458.81M |
| EBITDA | 269.85M | 260.67M | 406.97M | 412.42M | 564.65M |
| Net Income | 140.02M | 84.61M | 190.08M | 194.38M | 266.08M |
Balance Sheet | |||||
| Total Assets | 2.22B | 2.02B | 2.10B | 1.87B | 1.84B |
| Cash, Cash Equivalents and Short-Term Investments | 679.07M | 702.10M | 797.81M | 535.47M | 425.06M |
| Total Debt | 73.67M | 28.14M | 28.04M | 28.36M | 124.29M |
| Total Liabilities | 283.62M | 211.98M | 334.04M | 248.69M | 361.52M |
| Stockholders Equity | 1.92B | 1.80B | 1.76B | 1.61B | 1.47B |
Cash Flow | |||||
| Free Cash Flow | -23.34M | -68.89M | 302.42M | 261.12M | 271.56M |
| Operating Cash Flow | 299.47M | 119.76M | 372.77M | 306.18M | 350.37M |
| Investing Cash Flow | -319.66M | -171.00M | -62.89M | -36.38M | -48.25M |
| Financing Cash Flow | -20.36M | -50.99M | -53.16M | -159.45M | -238.97M |
Dongguang Chemical Ltd. Technical Analysis
Negative
1.88
Price Trends
1.72
Negative
1.74
Negative
1.72
Negative
Market Momentum
-0.06
Positive
14.28
Positive
<0.01
Positive
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 1.88 is above the 20-day moving average (MA) of 1.56, above the 50-day MA of 1.72, and above the 200-day MA of 1.72, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 14.28 is Positive, neither overbought nor oversold. The STOCH value of <0.01 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$22.11B | 11.77 | 12.00% | 0.98% | 1.21% | 108.04% | |
66 Neutral | HK$894.16M | 5.41 | 7.42% | 2.20% | -7.41% | 65.65% | |
62 Neutral | HK$931.12M | 13.08 | 2.57% | 3.52% | 1.20% | -7.22% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
49 Neutral | HK$3.61B | 7.56 | 7.74% | ― | -5.68% | -25.13% | |
48 Neutral | HK$337.35M | -0.35 | 4206.78% | ― | -16.83% | -45.43% | |
47 Neutral | HK$9.16B | -20.46 | -11.55% | ― | 77.67% | -259.39% |
* Basic Materials Sector Average
HK:1702
Dongguang Chemical Ltd.
1.44
-0.23
-13.51%
HK:0827
Ko Yo Chemical (Group) Limited
0.05
0.02
92.00%
HK:0609
Tiande Chemical Holdings Limited
1.06
-0.08
-7.02%
HK:0189
Dongyue Group Limited
13.35
3.05
29.56%
HK:2198
China Sanjiang Fine Chemicals Co., Ltd.
3.08
1.29
72.45%
HK:6616
Global New Material International Holdings Limited
7.34
1.70
30.14%
Dongguang Chemical Ltd. Corporate Events
Dongguang Chemical Revamps Independent Board Line-up to Bolster Governance
Jun 22, 2026
Dongguang Chemical Limited announced board changes effective 22 June 2026, including the resignation of long-serving independent non-executive director Ms. Lin Xiuxiang. Her departure also ends her roles chairing the audit and remuneration committ...
Dongguang Chemical Sets Out Board and Committee Governance Structure
Jun 22, 2026
Dongguang Chemical Limited has outlined the composition of its board of directors, listing four executive directors, including chairman Wang Chunmeng, and three independent non-executive directors. This structure underscores the company’s ad...
Dongguang Chemical Shareholders Unanimously Back All AGM Resolutions
May 22, 2026
Dongguang Chemical Limited announced that all ordinary resolutions at its annual general meeting held on 22 May 2026 were passed by poll with 100% of votes cast in favour. Shareholders approved the audited consolidated financial statements for the...
Dongguang Chemical Faces Temporary Governance Shortfall After Director Resignation
May 5, 2026
Dongguang Chemical Limited announced that independent non-executive director Ng Sai Leung has resigned effective 5 May 2026 due to other work commitments, stepping down as chairman of both the audit and corporate governance committees. The company...
Dongguang Chemical Sets Out Board and Committee Structure to Strengthen Governance
May 5, 2026
Dongguang Chemical Limited has announced the current composition of its board of directors, which comprises four executive directors, led by chairman Wang Chunmeng, and two independent non-executive directors, Lin Xiuxiang and Liu Jincheng. The di...
Dongguang Chemical Sets AGM to Approve Dividend, Board Mandates and Share Issue Authority
Apr 22, 2026
Dongguang Chemical Limited, a Cayman Islands-incorporated chemicals producer listed on the Hong Kong Stock Exchange, operates from Chengdong Industrial Zone in Hebei Province, PRC. The company serves industrial customers with a range of chemical p...
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.