SEHK:189

Stock Analysis Report

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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


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

189IndustryMarket
7 Day-6.9%1.4%1.5%
30 Day36.9%22.0%10.1%
90 Day24.3%15.7%7.5%
1 Year11.9%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 Year145.1%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

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

NamePositionTenureCompensationOwnership
Jianhong Zhang
CEO & Chairman14.33yrsCN¥18.74m12.6%
CN¥ 1.1b
Zhefeng Zhang
CFO, VP & Executive Director3.5yrsCN¥7.27m0.031%
CN¥ 2.7m
Kwan Fu
Executive Director14.33yrsCN¥144.00kno data
Jian Zhang
Executive Director14.33yrsCN¥144.00k0.019%
CN¥ 1.7m
Bishu Zhang
Executive Director3.5yrsCN¥144.00kno data
Chuanqi Liu
Executive Director14.33yrsCN¥180.00k3.92%
CN¥ 344.0m
Leung Huel Ting
Independent Non Executive Director13yrsCN¥430.00kno data
Rundong Yue
Independent Non Executive Director13yrsCN¥204.00kno data
Xiaoyong Yang
Independent Non-Executive Director6.25yrsCN¥204.00kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
189SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2007
4D3DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2007
189SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2007
189SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 10:14
End of Day Share Price2020/11/30 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.