Executive Summary
Dongyue Group Limited, an investment holding company, manufactures, distributes, and sells polymers, organic silicone, refrigerants, 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 average dividend payer.
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 +/- 7% a week.
Volatility Over Time: 189's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-11.6%
189
-1.1%
HK Chemicals
-1.3%
HK Market
1 Year Return
64.8%
189
62.7%
HK Chemicals
21.7%
HK Market
Return vs Industry: 189 exceeded the Hong Kong Chemicals industry which returned 62.7% over the past year.
Return vs Market: 189 exceeded the Hong Kong Market which returned 21.7% over the past year.
Shareholder returns
| 189 | Industry | Market | |
|---|---|---|---|
| 7 Day | -11.6% | -1.1% | -1.3% |
| 30 Day | -12.3% | 2.5% | 0.2% |
| 90 Day | -23.8% | 12.6% | -2.2% |
| 1 Year | 68.7%64.8% | 70.6%62.7% | 26.3%21.7% |
| 3 Year | -7.8%-21.4% | -8.5%-21.6% | 10.1%-1.6% |
| 5 Year | n/a | 43.5%13.3% | 59.7%32.5% |
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
5 days ago | Simply Wall St
How Much Of Dongyue Group Limited (HKG:189) Do Insiders Own?2 weeks ago | Simply Wall St
Shareholders May Be Wary Of Increasing Dongyue Group Limited's (HKG:189) CEO Compensation Package3 weeks ago | Simply Wall St
Dongyue Group (HKG:189) Is Paying Out Less In Dividends Than Last YearValuation
Is Dongyue Group undervalued compared to its fair value and its price relative to the market?
35.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 189 (HK$5.34) is trading below our estimate of fair value (HK$8.33)
Significantly Below Fair Value: 189 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 189 is poor value based on its PE Ratio (11.8x) compared to the Hong Kong Chemicals industry average (10x).
PE vs Market: 189 is poor value based on its PE Ratio (11.8x) compared to the Hong Kong market (11.5x).
Price to Earnings Growth Ratio
PEG Ratio: 189 is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: 189 is overvalued based on its PB Ratio (1.1x) compared to the HK Chemicals industry average (0.7x).
Future Growth
How is Dongyue Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
19.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 189's forecast earnings growth (19.2% per year) is above the savings rate (1.5%).
Earnings vs Market: 189's earnings (19.2% per year) are forecast to grow slower than the Hong Kong market (19.4% per year).
High Growth Earnings: 189's earnings are forecast to grow, but not significantly.
Revenue vs Market: 189's revenue (7.5% per year) is forecast to grow slower than the Hong Kong market (12.8% per year).
High Growth Revenue: 189's revenue (7.5% 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 (13.5%).
Past Performance
How has Dongyue Group performed over the past 5 years?
27.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 189 has high quality earnings.
Growing Profit Margin: 189's current net profit margins (7.7%) are lower than last year (11.3%).
Past Earnings Growth Analysis
Earnings Trend: 189 has become profitable over the past 5 years, growing earnings by 27.7% per year.
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 (-47.1%) over the past year, making it difficult to compare to the Chemicals industry average (-0.7%).
Return on Equity
High ROE: 189's Return on Equity (8.6%) is considered low.
Financial Health
How is Dongyue Group's financial position?
Financial Position Analysis
Short Term Liabilities: 189's short term assets (CN¥9.9B) exceed its short term liabilities (CN¥5.7B).
Long Term Liabilities: 189's short term assets (CN¥9.9B) exceed its long term liabilities (CN¥860.3M).
Debt to Equity History and Analysis
Debt Level: 189's debt to equity ratio (18.1%) is considered satisfactory.
Reducing Debt: 189's debt to equity ratio has reduced from 67.2% to 18.1% over the past 5 years.
Debt Coverage: 189's debt is well covered by operating cash flow (118.7%).
Interest Coverage: 189's interest payments on its debt are well covered by EBIT (34.5x coverage).
Balance Sheet
Dividend
What is Dongyue Group current dividend yield, its reliability and sustainability?
2.59%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 189's dividend (2.59%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.9%).
High Dividend: 189's dividend (2.59%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.05%).
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 (31.5%), 189's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 189's dividends in 3 years are forecast to be well covered by earnings (36% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.8yrs
Average board tenure
CEO
Jianhong Zhang (60 yo)
14.92yrs
Tenure
CN¥17,465,000
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 ($USD2.71M) is above average for companies of similar size in the Hong Kong market ($USD647.16K).
Compensation vs Earnings: Jianhong's compensation has been consistent with company performance over the past year.
Board Members
Experienced Board: 189's board of directors are considered experienced (6.8 years average tenure).
Ownership
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.
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$11.276b
- 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
Biography
Dongyue Group Limited, an investment holding company, manufactures, distributes, and sells polymers, organic silicone, refrigerants, dichloromethane, polyvinyl chloride (PVC), liquid alkali, and other prod...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/20 10:02 |
| End of Day Share Price | 2021/06/18 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.