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Last Updated

2021/05/10 10:33 UTC

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Company Financials

Executive Summary

Dongguang Chemical Limited, an investment holding company, manufactures and sells urea in the People’s Republic of China. More Details

Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

How has Dongguang Chemical's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: 1702 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 1702's weekly volatility (3%) has been stable over the past year.

Market Performance

7 Day Return




HK Chemicals


HK Market

1 Year Return




HK Chemicals


HK Market

Return vs Industry: 1702 underperformed the Hong Kong Chemicals industry which returned 43.5% over the past year.

Return vs Market: 1702 underperformed the Hong Kong Market which returned 25.4% over the past year.

Shareholder returns

7 Day0%0.2%-0.5%
30 Day-7.2%4.1%-0.9%
90 Day-8.8%-0.6%-3.2%
1 Year-25.5%-27.6%51.7%43.5%30.2%25.4%
3 Year-59.0%-61.2%-20.7%-34.5%3.0%-7.9%
5 Yearn/a29.0%-0.3%61.6%34.1%

Long-Term Price Volatility Vs. Market

How volatile is Dongguang Chemical's share price compared to the market and industry in the last 5 years?

Simply Wall St News


Is Dongguang Chemical undervalued compared to its fair value and its price relative to the market?


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 1702 (HK$1.55) is trading below our estimate of fair value (HK$3.71)

Significantly Below Fair Value: 1702 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 1702 is good value based on its PE Ratio (6.4x) compared to the HK Chemicals industry average (9.5x).

PE vs Market: 1702 is good value based on its PE Ratio (6.4x) compared to the Hong Kong market (11.7x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1702's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 1702's PB Ratio (0.6x) is in line with the HK Chemicals industry average.

Future Growth

How is Dongguang Chemical forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?


Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Dongguang Chemical has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Dongguang Chemical performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1702 has high quality earnings.

Growing Profit Margin: 1702's current net profit margins (6.4%) are lower than last year (7.6%).

Past Earnings Growth Analysis

Earnings Trend: 1702's earnings have grown significantly by 24.7% per year over the past 5 years.

Accelerating Growth: 1702's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1702 had negative earnings growth (-22.3%) over the past year, making it difficult to compare to the Chemicals industry average (-0.7%).

Return on Equity

High ROE: 1702's Return on Equity (10.2%) is considered low.

Financial Health

How is Dongguang Chemical's financial position?

Financial Position Analysis

Short Term Liabilities: 1702's short term assets (CN¥508.1M) exceed its short term liabilities (CN¥479.6M).

Long Term Liabilities: 1702's short term assets (CN¥508.1M) exceed its long term liabilities (CN¥45.4M).

Debt to Equity History and Analysis

Debt Level: 1702's debt to equity ratio (23.6%) is considered satisfactory.

Reducing Debt: 1702's debt to equity ratio has reduced from 132% to 23.6% over the past 5 years.

Debt Coverage: 1702's debt is well covered by operating cash flow (107.5%).

Interest Coverage: 1702's interest payments on its debt are well covered by EBIT (10.9x coverage).

Balance Sheet


What is Dongguang Chemical current dividend yield, its reliability and sustainability?


Current Dividend Yield

Upcoming Dividend Payment

TodayMay 10 2021Ex Dividend DateJun 02 2021Dividend Pay DateJun 18 202116 days from Ex DividendBuy in the next 22 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 1702's dividend (3.23%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.95%).

High Dividend: 1702's dividend (3.23%) is low compared to the top 25% of dividend payers in the Hong Kong market (5.99%).

Stability and Growth of Payments

Stable Dividend: 1702 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1702's dividend payments have increased, but the company has only paid a dividend for 3 years.

Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.9%), 1702's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average board tenure


Jianming Guo (46 yo)



Mr. Jianming Guo serves as General Manager at Dongguang Chemical Limited since December 2017. He served as its Deputy General Manager since August 2003 at Dongguang Chemical Limited. Mr. Guo is responsible...

Board Members

Experienced Board: 1702's board of directors are considered experienced (3.9 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

Dongguang Chemical Limited's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: Dongguang Chemical Limited
  • Ticker: 1702
  • Exchange: SEHK
  • Founded: 1970
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: HK$962.463m
  • Shares outstanding: 620.94m
  • Website:

Number of Employees


  • Dongguang Chemical Limited
  • Chengdong Industrial Zone
  • Dongguang County
  • Cangzhou
  • Hebei Province
  • China



Dongguang Chemical Limited, an investment holding company, manufactures and sells urea in the People’s Republic of China. It offers coal-based urea for use as a source of nitrogen in fertilizers and in ind...

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/10 10:33
End of Day Share Price2021/05/07 00:00
Annual Earnings2020/12/31

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.