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Dongguang ChemicalHKSE:01702 79 Interest Coverage is 65.62 as of Dec. 2025, which is 298% above its 10-year median of 16.49. 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 1,232 Chemicals companies, Dongguang Chemical ranks better than 82.22% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Dongguang Chemical's
Operating Income
for the
six
months ended in Dec. 2025 was HK$71 Mil. Dongguang Chemical's Interest Expense for the
six
months ended in Dec. 2025 was HK$-1 Mil.
Dongguang Chemical's interest coverage for the quarter that ended in Dec. 2025 was 65.62.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Dongguang Chemical Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Dongguang Chemical's Interest Coverage or its related term are showing as below:
HKSE:01702'
s Interest Coverage Range Over the Past 10 Years
Min: 1.58 Med: 16.49 Max: 139.32
Current: 73.79
HKSE:01702's Interest Coverage is ranked better than 82.22% of 1232
companies
in the Chemicals industry
Industry Median: 10.13
vs HKSE:01702: 73.79
Dongguang Chemical (HKSE:01702) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Dongguang Chemical Interest Coverage Related Terms
Dongguang Chemical Interest Coverage Historical Data
* Premium members only.
The historical data trend for Dongguang Chemical's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Chemicals subindustry, Dongguang Chemical's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Dongguang Chemical's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Dongguang Chemical's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Dongguang Chemical (HKSE:01702) has a Interest Coverage of 65.62 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Dongguang Chemical and its competitors. This is 298% above median its historical median of 16.49. Over the past decade, Dongguang Chemical's Interest Coverage has ranged from 1.58 to 139.32. According to the industry distribution chart, Dongguang Chemical ranks #219 out of 1232 companies in the Chemicals industry, placing it in the top 17.8%.
Is Dongguang Chemical's Interest Coverage too high?
Dongguang Chemical's current Interest Coverage of 65.62 is 298% above median its 10-year median of 16.49. Over the past 10 years, this metric has ranged from a low of 1.58 to a high of 139.32. The Chemicals industry median Interest Coverage is 10.13. Dongguang Chemical's value of 65.62 is 547.8% above this industry median. Based on the distribution chart, Dongguang Chemical ranks #219 out of 1232 companies in the Chemicals industry, which is in the top quartile — a strong position 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 Interest Coverage compare to DOW?
According to the Chemicals industry distribution chart, Dongguang Chemical ranks #219 out of 1232 companies for Interest Coverage. This places Dongguang Chemical in the top 18% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 10.13. Dongguang Chemical's value of 65.62 is 547.8% above this benchmark. Historically, Dongguang Chemical's own Interest Coverage has ranged from 1.58 to 139.32 over the past decade. While the company's 10-year median is 16.49 vs. the industry median of 10.13, Dongguang Chemical has consistently been above 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 Interest Coverage for a Chemicals company?
The median Interest Coverage among Chemicals companies is 10.13, based on 1,232 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dongguang Chemical's current Interest Coverage of 65.62 is 547.8% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Dongguang Chemical and its competitors. For the Chemicals industry, the median Interest Coverage is 10.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dongguang Chemical's current Interest Coverage is 65.62, which is 298% above median its own 10-year median of 16.49. 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 Interest Coverage is 65.62, which is 298% above median its 10-year median of 16.49 and 547.8% above the Chemicals industry median of 10.13. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Dongguang Chemical (HKSE:01702), the current Interest Coverage is 65.62 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:
Interest Coverage: 65.62 (298% above median its 10-year median of 16.49)
GF Value™: HK$1.59 vs. price of HK$1.44 (9.4% below fair value)
Industry Position: 547.8% above the Chemicals median (#219 of 1232)
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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