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Dongguang ChemicalHKSE:01702 79 Gross Margin % is 8.15% as of Dec. 2025, which is 26% below its 10-year median of 10.97. GuruFocus rates HKSE:01702 with a GF Score™ of 79/100 and a GF Value™ of HK$1.59 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,558 Chemicals companies, Dongguang Chemical ranks worse than 85.56% on this metric.
Dongguang Chemical Ltd gross margin has been in long-term decline. The average rate of decline per year is -11.6%.
The historical rank and industry rank for Dongguang Chemical's Gross Margin % or its related term are showing as below:
HKSE:01702'
s Gross Margin % Range Over the Past 10 Years
Min: 6.68 Med: 10.97 Max: 15.93
Current: 8.38
During the past 12 years, the highestGross Margin % of Dongguang Chemical was 15.93%. The lowest was 6.68%. And the median was 10.97%.
HKSE:01702's Gross Margin % is ranked worse than 85.56% of 1558
companies
in the Chemicals industry
Industry Median: 23.465
vs HKSE:01702: 8.38
Dongguang Chemical had a gross margin of 8.15% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Dongguang Chemical was -11.60% per year.
Dongguang Chemical (HKSE:01702) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Dongguang Chemical had a gross margin of 8.15% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Dongguang Chemical Gross Margin % Related Terms
Dongguang Chemical Gross Margin % Historical Data
* Premium members only.
The historical data trend for Dongguang Chemical's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Chemicals subindustry, Dongguang Chemical's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dongguang Chemical Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Dongguang Chemical's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dongguang Chemical's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Dongguang Chemical (HKSE:01702) has a Gross Margin % of 8.15% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Dongguang Chemical and its competitors. This is 26% below median its historical median of 10.97. Over the past decade, Dongguang Chemical's Gross Margin % has ranged from 6.68 to 15.93. According to the industry distribution chart, Dongguang Chemical ranks #1333 out of 1558 companies in the Chemicals industry, placing it in the top 85.6%.
Is Dongguang Chemical's Gross Margin % too high?
Dongguang Chemical's current Gross Margin % of 8.15% is 26% below median its 10-year median of 10.97. Over the past 10 years, this metric has ranged from a low of 6.68 to a high of 15.93. The Chemicals industry median Gross Margin % is 23.47. Dongguang Chemical's value of 8.15% is 65.3% below this industry median. Based on the distribution chart, Dongguang Chemical ranks #1333 out of 1558 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Dongguang Chemical has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dongguang Chemical's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Dongguang Chemical ranks #1333 out of 1558 companies for Gross Margin %. This places Dongguang Chemical in the lower half of its industry. The industry median Gross Margin % is 23.47. Dongguang Chemical's value of 8.15% is 65.3% below this benchmark. Historically, Dongguang Chemical's own Gross Margin % has ranged from 6.68 to 15.93 over the past decade. While the company's 10-year median is 10.97 vs. the industry median of 23.47, Dongguang Chemical has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.47, based on 1,558 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dongguang Chemical's current Gross Margin % of 8.15% is 65.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Dongguang Chemical and its competitors. For the Chemicals industry, the median Gross Margin % is 23.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dongguang Chemical's current Gross Margin % is 8.15%, which is 26% below median its own 10-year median of 10.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dongguang Chemical stock overvalued right now?
Based on GuruFocus' analysis, Dongguang Chemical (HKSE:01702) is currently considered Fairly Valued. The stock's GF Value™ is HK$1.59, compared to a current price of HK$1.44 — trading 9.4% below its estimated fair value. The current Gross Margin % is 8.15%, which is 26% below median its 10-year median of 10.97 and 65.3% below the Chemicals industry median of 23.47. Dongguang Chemical's overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Dongguang Chemical (HKSE:01702), the current Gross Margin % is 8.15% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dongguang Chemical (HKSE:01702) Overvalued in 2026?
Based on GuruFocus' analysis, Dongguang Chemical stock appears to be undervalued.
The current stock price of HK$1.44 is trading 9.4% below its estimated GF Value™ of HK$1.59.
GuruFocus considers Dongguang Chemical to be Fairly Valued.
Key valuation signals for HKSE:01702:
Gross Margin %: 8.15% (26% below median its 10-year median of 10.97)
GF Value™: HK$1.59 vs. price of HK$1.44 (9.4% below fair value)
Industry Position: 65.3% below the Chemicals median (#1333 of 1558)
No single metric tells the full story. See the HKSE:01702 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dongguang Chemical Ltd is a coal-based urea producer. It produces and sells urea. Urea is the Group's main product, and the application of urea can be broadly categorised into agricultural and industrial uses. It is widely used as a source of nitrogen in fertilisers, and it has wide industrial applications, such as the production of adhesives, coatings, plastics, and cosmetics. The Group also produces and sells by-products of urea, including vehicle urea solution, methanol, liquid carbon dioxide, liquefied natural gas, liquid ammonia, and compound fertiliser. The Group has two active production plants with production technologies located in Dongguang County of Cangzhou City, Hebei Province.
79GF Score
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