Executive Summary
Dongyue Group Limited, an investment holding company, manufactures, distributes, and sells refrigerants, polymers, organic silicone and dichloromethane, polyvinyl chloride (PVC), liquid alkali, and other products in the People's Republic of China. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and undervalued.
Similar Companies
Share Price & News
How has Dongyue Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 189 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: 189's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-6.9%
189
1.4%
HK Chemicals
1.5%
HK Market
1 Year Return
4.7%
189
7.8%
HK Chemicals
11.3%
HK Market
Return vs Industry: 189 underperformed the Hong Kong Chemicals industry which returned 7.8% over the past year.
Return vs Market: 189 underperformed the Hong Kong Market which returned 11.3% over the past year.
Shareholder returns
| 189 | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.9% | 1.4% | 1.5% |
| 30 Day | 36.9% | 22.0% | 10.1% |
| 90 Day | 24.3% | 15.7% | 7.5% |
| 1 Year | 11.9%4.7% | 14.1%7.8% | 15.9%11.3% |
| 3 Year | -3.9%-19.4% | -24.0%-37.2% | 1.7%-8.9% |
| 5 Year | 145.1%97.1% | 13.3%-11.4% | 33.3%10.9% |
Long-Term Price Volatility Vs. Market
How volatile is Dongyue Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is Dongyue Group Limited's (HKG:189) Stock's Recent Performance Being Led By Its Attractive Financial Prospects?2 weeks ago | Simply Wall St
Did You Participate In Any Of Dongyue Group's (HKG:189) Fantastic 108% Return ?1 month ago | Simply Wall St
Is It Too Late To Consider Buying Dongyue Group Limited (HKG:189)?Valuation
Is Dongyue Group undervalued compared to its fair value and its price relative to the market?
28.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 189 (HK$4.04) is trading below our estimate of fair value (HK$5.68)
Significantly Below Fair Value: 189 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 189 is good value based on its PE Ratio (6.9x) compared to the HK Chemicals industry average (7.5x).
PE vs Market: 189 is good value based on its PE Ratio (6.9x) compared to the Hong Kong market (11.2x).
Price to Earnings Growth Ratio
PEG Ratio: 189 is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: 189 is overvalued based on its PB Ratio (0.9x) compared to the HK Chemicals industry average (0.7x).
Next Steps
Future Growth
How is Dongyue Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
13.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 189's forecast earnings growth (13.8% per year) is above the savings rate (1.6%).
Earnings vs Market: 189's earnings (13.8% per year) are forecast to grow slower than the Hong Kong market (22% per year).
High Growth Earnings: 189's earnings are forecast to grow, but not significantly.
Revenue vs Market: 189's revenue (6.7% per year) is forecast to grow slower than the Hong Kong market (13.7% per year).
High Growth Revenue: 189's revenue (6.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 189's Return on Equity is forecast to be low in 3 years time (13.4%).
Next Steps
Past Performance
How has Dongyue Group performed over the past 5 years?
37.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 189 has high quality earnings.
Growing Profit Margin: 189's current net profit margins (8.9%) are lower than last year (13.6%).
Past Earnings Growth Analysis
Earnings Trend: 189's earnings have grown significantly by 37.8% per year over the past 5 years.
Accelerating Growth: 189's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 189 had negative earnings growth (-41.4%) over the past year, making it difficult to compare to the Chemicals industry average (-39.4%).
Return on Equity
High ROE: 189's Return on Equity (12.2%) is considered low.
Next Steps
Financial Health
How is Dongyue Group's financial position?
Financial Position Analysis
Short Term Liabilities: 189's short term assets (CN¥10.4B) exceed its short term liabilities (CN¥5.4B).
Long Term Liabilities: 189's short term assets (CN¥10.4B) exceed its long term liabilities (CN¥1.5B).
Debt to Equity History and Analysis
Debt Level: 189's debt to equity ratio (21.7%) is considered satisfactory.
Reducing Debt: 189's debt to equity ratio has reduced from 56.9% to 21.7% over the past 5 years.
Debt Coverage: 189's debt is well covered by operating cash flow (95.3%).
Interest Coverage: 189's interest payments on its debt are well covered by EBIT (28.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Dongyue Group current dividend yield, its reliability and sustainability?
5.83%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 189's dividend (5.83%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.19%).
High Dividend: 189's dividend (5.83%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.58%).
Stability and Growth of Payments
Stable Dividend: 189's dividend payments have been volatile in the past 10 years.
Growing Dividend: 189's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (40.2%), 189'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
Management
How experienced are the management team and are they aligned to shareholders interests?
13.0yrs
Average board tenure
CEO
Jianhong Zhang (60 yo)
14.33yrs
Tenure
CN¥18,737,000
Compensation
Mr. Jianhong Zhang has been the Chief Executive Officer of Dongyue Group Limited since July 24, 2006. Mr. Zhang has been with Dongyue Group and its predecessors since October 1986. He has been an Executive...
CEO Compensation Analysis
Compensation vs Market: Jianhong's total compensation ($USD2.85M) is above average for companies of similar size in the Hong Kong market ($USD462.67K).
Compensation vs Earnings: Jianhong's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Chairman | 14.33yrs | CN¥18.74m | 12.6% CN¥ 1.1b | |
| CFO, VP & Executive Director | 3.5yrs | CN¥7.27m | 0.031% CN¥ 2.7m | |
| Executive Director | 14.33yrs | CN¥144.00k | no data | |
| Executive Director | 14.33yrs | CN¥144.00k | 0.019% CN¥ 1.7m | |
| Executive Director | 3.5yrs | CN¥144.00k | no data | |
| Executive Director | 14.33yrs | CN¥180.00k | 3.92% CN¥ 344.0m | |
| Independent Non Executive Director | 13yrs | CN¥430.00k | no data | |
| Independent Non Executive Director | 13yrs | CN¥204.00k | no data | |
| Independent Non-Executive Director | 6.25yrs | CN¥204.00k | no data |
13.0yrs
Average Tenure
60yo
Average Age
Experienced Board: 189's board of directors are seasoned and experienced ( 13 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 189 insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Dongyue Group Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Dongyue Group Limited
- Ticker: 189
- Exchange: SEHK
- Founded: 1987
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: HK$8.785b
- Shares outstanding: 2.11b
- Website: https://www.dongyuechem.com
Number of Employees
Location
- Dongyue Group Limited
- Dongyue International Fluoro
- Silicone Material Industry Park
- Zibo
- Shandong Province
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 189 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Dec 2007 |
| 4D3 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Dec 2007 |
| 189 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Dec 2007 |
| 189 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Dec 2007 |
Biography
Dongyue Group Limited, an investment holding company, manufactures, distributes, and sells refrigerants, polymers, organic silicone and dichloromethane, polyvinyl chloride (PVC), liquid alkali, and other p...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/30 10:14 |
| End of Day Share Price | 2020/11/30 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.