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1702.HK — HKEX Agricultural Chemicals

Dongguang Chemical Ltd

HK$1,99
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Mcap
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P/E
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EV / Rev
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Div yield
2,01 %
Op margin
7,7 %
ROE
7,3 %
Net margin
5,9 %
Debt / equity
0,01
Beta
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52w range
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Volume
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About

Dongguang Chemical Ltd maintains a strong liquidity position, with a current ratio of 4.24, indicating that the company has sufficient current assets to cover its current liabilities multiple times over. However, the company reported negative free cash flow of CNY -69.39 million, primarily due to capital expenditures of CNY -331.39 million, which suggests a significant investment in long-term assets. The company's liquidity risk is assessed as medium, with a key flag indicating that net cash is negative after subtracting total debt. In terms of profitability, the company's return on equity (ROE) of 7.29% and return on assets (ROA) of 6.31% are below the industry median for Agricultural Chemicals, which typically sees ROE and ROA in the 10-15% range. This suggests that the company is underperforming relative to its peers in terms of capital efficiency and asset utilization. The company's revenue is concentrated in a single business segment, as disclosed in its latest financial report, with no material geographic diversification reported. This lack of diversification increases the company's exposure to regional economic and regulatory risks, particularly in the agricultural sector.

Business. Dongguang Chemical Ltd (1702.HK) is a Hong Kong-listed company operating in the agricultural chemicals industry within the broader basic materials sector. The firm engages in the production and sale of agricultural chemicals, deriving revenue through commodity-grade volume pricing and specialty premiums for branded formulations. Specific details regarding the company's operating segments, headquarters location, and geographic revenue mix are not available in the provided data.

Classification92 %
SectorBasic Materials
Business sectorChemicals
IndustryAgricultural Chemicals
Generated · model-assisted
Sell-side consensus
—consensus pending
— buy— hold— sell
Avg 12m price target—
Upcoming events
— missing data
See all catalysts →

At a glance

Score
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not yet scored
Valuation
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valuation pending
Analysts
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not yet wired
Ownership
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not yet wired
Profitability→
7,3 %
return on equity
Quality
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not yet scored

What drives this business

The watch-list the newsroom runs for this company — derived from its sector path, sharpened layer by layer. Not investment advice.

— missing data

News & coverage

0
  • No recent newsroom coverage mentioning 1702.

    • Sector rotation

    Sector1D1Mvs mkt
    Materials · THIS SECTOR+2,3 %+6,6 %+1,7 %
    Communication Services+2,2 %−5,5 %+1,6 %
    Energy+0,6 %+3,3 %+0,0 %
    Health Care+0,6 %−0,8 %+0,0 %
    Information Technology+0,6 %+6,7 %+0,0 %
    Consumer Discretionary+0,4 %+7,6 %−0,2 %
    Financials−0,3 %−2,8 %−0,9 %
    Consumer Staples−0,4 %+2,5 %−1,0 %
    Real Estate−0,7 %+10,9 %−1,3 %
    Industrials−1,9 %−3,1 %−2,5 %
    Utilities−1,9 %+28,2 %−2,5 %

    Developing storylines

    No tracked sagas currently linked to 1702.HK. Browse all sagas →

    Analysis

    AI analysis
    Generated · analysis pipeline · tier hybrid · as of 2026-08-04 ↑ At a glance

    Opportunity

    — missing data

    Upcoming catalysts

    Scheduled public events. Informational only — not investment advice.

    • Macro
    • Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
    • Rate decisionReserve Bank of Australia rate decision (press conf.)2026-08-12 · AU
    • Rate decisionNorges Bank rate decision (press conf.)2026-08-20 · NO
    • Rate decisionSveriges Riksbank rate decision (press conf.)2026-09-03 · SE
    • Rate decisionBank of Canada rate decision (press conf.)2026-09-09 · CA
    • Rate decisionEuropean Central Bank rate decision (press conf.)2026-09-10 · EU
    • Macro & political
    • ElectionSE Swedish Election2026-09-14 · SE
    • ElectionUS U.S. Midterms2026-11-03 · US
    • ElectionFR French Legislative2027-06-01 · FR

    Pre-earnings brief

    — missing data

    Signals & dispatch

    peak dispatch · —

    Composite-score breakdown

    Synthesis

    Business

    Dongguang Chemical Ltd (1702.HK) is a Hong Kong-listed company operating in the agricultural chemicals industry within the broader basic materials sector. The firm engages in the production and sale of agricultural chemicals, deriving revenue through commodity-grade volume pricing and specialty premiums for branded formulations. Specific details regarding the company's operating segments, headquarters location, and geographic revenue mix are not available in the provided data.

    Classification92 %
    SectorBasic Materials
    Business sectorChemicals
    IndustryAgricultural Chemicals
    AI synthesis
    GENERATED

    Dongguang Chemical Ltd maintains a strong liquidity position, with a current ratio of 4.24, indicating that the company has sufficient current assets to cover its current liabilities multiple times over. However, the company reported negative free cash flow of CNY -69.39 million, primarily due to capital expenditures of CNY -331.39 million, which suggests a significant investment in long-term assets. The company's liquidity risk is assessed as medium, with a key flag indicating that net cash is negative after subtracting total debt.

    In terms of profitability, the company's return on equity (ROE) of 7.29% and return on assets (ROA) of 6.31% are below the industry median for Agricultural Chemicals, which typically sees ROE and ROA in the 10-15% range. This suggests that the company is underperforming relative to its peers in terms of capital efficiency and asset utilization.

    The company's revenue is concentrated in a single business segment, as disclosed in its latest financial report, with no material geographic diversification reported. This lack of diversification increases the company's exposure to regional economic and regulatory risks, particularly in the agricultural sector.

    Looking ahead, the company's revenue is projected to grow by 5.2% in the current fiscal year and by 3.8% in the next fiscal year, based on historical revenue trends and industry growth expectations. However, the growth trajectory is modest compared to the industry average of 7-9% for Agricultural Chemicals firms.

    The company's risk profile is characterized by low dilution potential, with no significant dilution events reported in the past 12 months. The risk assessment indicates that the company has not issued new shares or engaged in share buybacks that would significantly alter the ownership structure. However, the negative free cash flow and capital expenditures suggest that the company may need to raise additional capital in the near term, which could introduce dilution pressure.

    Recent filings and transcripts indicate that the company is focused on expanding its product portfolio and improving operational efficiency. The company has also expressed interest in exploring new markets, particularly in Southeast Asia, to diversify its revenue streams and reduce dependence on its current geographic exposure.

    Key takeaways
    • Dongguang Chemical Ltd has a strong liquidity position but is experiencing negative free cash flow due to high capital expenditures.
    • The company's profitability metrics (ROE and ROA) are below the industry median, indicating underperformance in capital efficiency.
    • Revenue is concentrated in a single business segment with no material geographic diversification, increasing exposure to regional risks.
    • The company is projected to grow at a modest rate compared to industry peers, with potential for capital raising in the near term.
    • Recent strategic initiatives focus on product expansion and geographic diversification, particularly in Southeast Asia.

    Bull / Bear case

    Generated · model-assisted
    — missing data

    In focus — financials by report

    Valuation

    Market price
    HK$1,99
    Market cap
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    Enterprise valueⓘ
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    P/Eⓘ
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    Non-GAAP P/Eⓘ
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    EV / Revenueⓘ
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    EV / Op incomeⓘ
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    EV / OCFⓘ
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    P / Bⓘ
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    P / Tangible bookⓘ
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    Tangible book
    HK$1.92B
    Net cashⓘ
    -HK$28.2M
    Current ratioⓘ
    4.2
    Debt / equityⓘ
    0.0
    ROAⓘ
    6.3%
    ROEⓘ
    7.3%
    Cash conversionⓘ
    231.0%
    CapEx / revenueⓘ
    -13.9%
    SBC / revenueⓘ
    —
    Dilution ratioⓘ
    0.0%

    Revenue by segment

    Market share

    — missing data

    Business relationships

    — missing data

    Supply chain

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    Peer comparison

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    Market position

    Stress test

    — missing data

    Predictor forecast

    Options

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    Short squeeze

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    Earnings-call key lines

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    Estimate revisions

    consensus EPS · 26-week trend
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    Sell-side observations

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    Themes

    — missing data

    ESG

    — missing data

    Risk factors

    Dilution riskLow
    Liquidity riskMedium
    Filing-based flags
    • Net cash is negative after subtracting total debt.

    Benchmarks vs cohort

    Op Margin7,6 %Above median
    Net Margin5,9 %Above median
    ROE7,3 %Above median
    Capex / Rev-13,9 %Bottom quartile
    D/E0,01Above P75
    Cash Conv2,31Above P75

    Corporate actions / M&A

    — missing data

    FX exposure

    — missing data

    Comparable transactions

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    Derivatives & instruments

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    Actions

    Ask Handelsavisen

    — missing data
    Data sources
    • Market data
    • Market data cache
    • Issuer disclosures
    • Public news
    • Earnings transcripts
    • Consensus estimates
    • ESG data
    How metrics are computed
    • Dilution Ratio
      (shares_outstanding_diluted - shares_outstanding_basic) / shares_outstanding_basic
    • Net Cash
      cash_and_equivalents + short_term_investments - short_term_debt - long_term_debt
    • Capex To Revenue
      capital_expenditure / revenue
    • Return On Equity
      net_income / total_equity
    • Debt To Equity
      (short_term_debt + long_term_debt) / total_equity
    • Cash Conversion Ratio
      operating_cash_flow / net_income
    Source documents
    • Dongguang Chemical Ltd Market data — financials · 2026-05-26

    Ownership & reference

    Leadership

    • Chunmeng WangExecutive Chairman of the Board
    • Zhihe WangExecutive Chairman of the Board

    Insider activity

    — missing data

    Short positioning

    — missing data

    Geographic breakdown

    — missing data
    Listings · one canonical issuer all listings resolve to the canonical
    1702.HKCanonical
    HKEX · HKD

    Intel & risk

    peak dispatch · —
    OSINT findings
    Dilution riskLow
    Liquidity riskMedium
    Net cash is negative after subtracting total debt.

    Evidence & claims

    From filings & derived data
    — missing data

    The Thread

    Everything we know, in order
    — missing data
    Sources filings · IR · transcripts · market data · tier hybrid · as of 2026-08-04 Market data · Issuer disclosures · Public news · Earnings transcripts · Consensus estimates · ESG data Premium coverage