Dongguang Chemical (HKSE:01702) Beneish M-Score: -0.70 (As of Jul. 08, 2026)

What is Dongguang Chemical Beneish M-Score?

Dongguang Chemical HKSE:01702 78 Beneish M-Score is -0.70 as of Jul. 08, 2026. GuruFocus rates HKSE:01702 with a GF Score™ of 78/100 and a GF Value™ of HK$1.59 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,524 Chemicals companies, Dongguang Chemical ranks worse than 93.83% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -0.7 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Dongguang Chemical's Beneish M-Score or its related term are showing as below:

HKSE:01702' s Beneish M-Score Range Over the Past 10 Years
Min: -7.17 Med: -3.14 Max: 203.17
Current: -0.7

During the past 12 years, the highest Beneish M-Score of Dongguang Chemical was 203.17. The lowest was -7.17. And the median was -3.14.

Dongguang Chemical Beneish M-Score Related Terms

Dongguang Chemical Beneish M-Score Historical Data

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The historical data trend for Dongguang Chemical's Beneish M-Score 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.

Dongguang Chemical Beneish M-Score Chart

Dongguang Chemical Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

Beneish M-Score

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-2.94

-5.41

-7.17

-2.76

-0.70

Dongguang Chemical Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24	Jun25	Dec25
Beneish M-Score	Get a 7-Day Free Trial															-7.17	0.00	-2.76	0.00	-0.70

HKSE:01702 vs DOW: Beneish M-Score Comparison

For the Chemicals subindustry, Dongguang Chemical's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Dongguang Chemical's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Dongguang Chemical's Beneish M-Score falls into.

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78GF Score

Dongguang Chemical Ltd HKSE:01702

Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.

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Dongguang Chemical Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Dongguang Chemical for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 3.4305

0.528 * 0.7969

0.404 * 1.263

0.892 * 0.9577

0.115 * 1.1139

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8999

4.679 * -0.082641

0.327 * 1.1754

-0.70

This Year (Dec25) TTM:

Last Year (Dec24) TTM:

Total Receivables was HK$33 Mil.
Revenue was HK$2,633 Mil.
Gross Profit was HK$221 Mil.
Total Current Assets was HK$1,093 Mil.
Total Assets was HK$2,450 Mil.
Property, Plant and Equipment(Net PPE) was HK$1,344 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$157 Mil.
Selling, General, & Admin. Expense(SGA) was HK$76 Mil.
Total Current Liabilities was HK$257 Mil.
Long-Term Debt & Capital Lease Obligation was HK$31 Mil.
Net Income was HK$155 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$357 Mil.

Total Receivables was HK$10 Mil.
Revenue was HK$2,750 Mil.
Gross Profit was HK$184 Mil.
Total Current Assets was HK$1,054 Mil.
Total Assets was HK$2,160 Mil.
Property, Plant and Equipment(Net PPE) was HK$1,097 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$145 Mil.
Selling, General, & Admin. Expense(SGA) was HK$88 Mil.
Total Current Liabilities was HK$186 Mil.
Long-Term Debt & Capital Lease Obligation was HK$30 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(33.325 / 2633.354)	/	(10.144 / 2749.679)
	=	0.012655	/	0.003689
	=	3.4305

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(183.69 / 2749.679)	/	(220.755 / 2633.354)
	=	0.066804	/	0.08383
	=	0.7969

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (1092.644 + 1344.206) / 2449.662)	/	(1 - (1054.09 + 1096.879) / 2159.913)
	=	0.00523	/	0.004141
	=	1.263

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	2633.354	/	2749.679
	=	0.9577

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(144.838 / (144.838 + 1096.879))	/	(157.226 / (157.226 + 1344.206))
	=	0.116643	/	0.104717
	=	1.1139

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(75.958 / 2633.354)	/	(88.14 / 2749.679)
	=	0.028845	/	0.032055
	=	0.8999

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((31.032 + 257.473) / 2449.662)	/	((29.949 + 186.465) / 2159.913)
	=	0.117773	/	0.100196
	=	1.1754

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(154.687 - 0	-	357.129)	/	2449.662
	=	-0.082641

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Dongguang Chemical has a M-score of -0.70 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →

What does a Beneish M-Score of -0.70 mean?

Dongguang Chemical (HKSE:01702) has a Beneish M-Score of -0.70 as of Jul. 08, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Dongguang Chemical and its competitors. According to the industry distribution chart, Dongguang Chemical ranks #1430 out of 1524 companies in the Chemicals industry, placing it in the top 93.8%.

Is Dongguang Chemical's Beneish M-Score too high?

Dongguang Chemical's current Beneish M-Score is -0.70. Based on the distribution chart, Dongguang Chemical ranks #1430 out of 1524 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Dongguang Chemical has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.

How does Dongguang Chemical's Beneish M-Score compare to DOW?

According to the Chemicals industry distribution chart, Dongguang Chemical ranks #1430 out of 1524 companies for Beneish M-Score. This places Dongguang Chemical in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Beneish M-Score for a Chemicals company?

A good Beneish M-Score depends on the Chemicals industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Beneish M-Score mean?

A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Dongguang Chemical and its competitors. Dongguang Chemical's current Beneish M-Score is -0.70. 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$1.59 — trading right at its estimated fair value. The current Beneish M-Score is -0.70. Dongguang Chemical's overall GF Score™ is 78/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Beneish M-Score calculated?

Beneish M-Score is calculated from a company's financial statements. For Dongguang Chemical (HKSE:01702), the current Beneish M-Score is -0.70 as of Jul. 08, 2026. 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$1.59 is trading 0% below its estimated GF Value™ of HK$1.59. GuruFocus considers Dongguang Chemical to be Fairly Valued.

Key valuation signals for HKSE:01702:

Beneish M-Score: -0.70
GF Value™: HK$1.59 vs. price of HK$1.59 (0% below fair value)
GF Score™: 78/100 with 4 warning signs

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 Business Description

Industry Basic Materials Chemicals

Comparable Companies HKSE:00433 HKSE:00609 HKSE:02881 HKSE:09933 HKSE:00827 HKSE:00660 HKSE:08139 HKSE:02198 HKSE:00746 TSE:4063 XTER:BAS SAU:2010 SZSE:002080 SHSE:600989 DOW SHSE:600160 TSE:4004 SHSE:600346 SZSE:002460 SZSE:002493

Address Chengdong Industrial Zone, Dongguang County, Hebei Province, Dongguang, CHN

Website https://www.dg-chemical.com

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.

78GF Score

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Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$1.59

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HK$1.59

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