Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Dongguang ChemicalHKSE:01702 83 Return-on-Tangible-Equity is 7.21% as of Dec. 2025, which is 35% below its 10-year median of 11.03. GuruFocus rates HKSE:01702 with a GF Score™ of 83/100 and a GF Value™ of HK$1.58 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,572 Chemicals companies, Dongguang Chemical ranks better than 58.65% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Dongguang Chemical's annualized net income for the quarter that ended in Dec. 2025 was HK$150 Mil. Dongguang Chemical's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$2,074 Mil. Therefore, Dongguang Chemical's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 7.21%.
The historical rank and industry rank for Dongguang Chemical's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:01702'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.66 Med: 11.03 Max: 20.02
Current: 7.6
During the past 12 years, Dongguang Chemical's highest Return-on-Tangible-Equity was 20.02%. The lowest was 2.66%. And the median was 11.03%.
HKSE:01702's Return-on-Tangible-Equity is ranked better than 58.65% of 1572
companies
in the Chemicals industry
Industry Median: 5.925
vs HKSE:01702: 7.60
Dongguang Chemical (HKSE:01702) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Dongguang Chemical Return-on-Tangible-Equity Related Terms
Dongguang Chemical Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Dongguang Chemical's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Chart
HKSE:01702 vs DOW: Return-on-Tangible-Equity Comparison
For the Chemicals subindustry, Dongguang Chemical's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Dongguang Chemical's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Dongguang Chemical's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.21% mean?
Dongguang Chemical (HKSE:01702) has a Return-on-Tangible-Equity of 7.21% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Dongguang Chemical and its competitors. This is 35% below median its historical median of 11.03. Over the past decade, Dongguang Chemical's Return-on-Tangible-Equity has ranged from 2.66 to 20.02. According to the industry distribution chart, Dongguang Chemical ranks #650 out of 1572 companies in the Chemicals industry, placing it in the top 41.3%.
Is Dongguang Chemical's Return-on-Tangible-Equity too high?
Dongguang Chemical's current Return-on-Tangible-Equity of 7.21% is 35% below median its 10-year median of 11.03. Over the past 10 years, this metric has ranged from a low of 2.66 to a high of 20.02. The Chemicals industry median Return-on-Tangible-Equity is 5.93. Dongguang Chemical's value of 7.21% is 21.7% above this industry median. Based on the distribution chart, Dongguang Chemical ranks #650 out of 1572 companies in the Chemicals industry, which is above the industry midpoint. Overall, Dongguang Chemical has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dongguang Chemical's Return-on-Tangible-Equity compare to DOW?
According to the Chemicals industry distribution chart, Dongguang Chemical ranks #650 out of 1572 companies for Return-on-Tangible-Equity. This puts Dongguang Chemical in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.93. Dongguang Chemical's value of 7.21% is 21.7% above this benchmark. Historically, Dongguang Chemical's own Return-on-Tangible-Equity has ranged from 2.66 to 20.02 over the past decade. While the company's 10-year median is 11.03 vs. the industry median of 5.93, 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 Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.93, based on 1,572 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dongguang Chemical's current Return-on-Tangible-Equity of 7.21% is 21.7% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Dongguang Chemical and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dongguang Chemical's current Return-on-Tangible-Equity is 7.21%, which is 35% below median its own 10-year median of 11.03. 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$1.58, compared to a current price of HK$1.44 — trading 8.9% below its estimated fair value. The current Return-on-Tangible-Equity is 7.21%, which is 35% below median its 10-year median of 11.03 and 21.7% above the Chemicals industry median of 5.93. Dongguang Chemical's overall GF Score™ is 83/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Dongguang Chemical (HKSE:01702), the current Return-on-Tangible-Equity is 7.21% 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 8.9% below its estimated GF Value™ of HK$1.58.
GuruFocus considers Dongguang Chemical to be Fairly Valued.
Key valuation signals for HKSE:01702:
Return-on-Tangible-Equity: 7.21% (35% below median its 10-year median of 11.03)
GF Value™: HK$1.58 vs. price of HK$1.44 (8.9% below fair value)
Industry Position: 21.7% above the Chemicals median (#650 of 1572)
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.
83GF Score
Get the complete analysis for HKSE:01702
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:01702 has been successfully added to your 
