Dongguang ChemicalHKSE:01702 78 ROE % is 7.21% as of Dec. 2025, which is 32% below its 10-year median of 10.55. 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 1,580 Chemicals companies, Dongguang Chemical ranks better than 63.16% on this metric.
The historical rank and industry rank for Dongguang Chemical's ROE % or its related term are showing as below:
HKSE:01702'
s ROE % Range Over the Past 10 Years
Min: 2.49 Med: 10.55 Max: 20.02
Current: 7.6
During the past 12 years, Dongguang Chemical's highest ROE % was 20.02%. The lowest was 2.49%. And the median was 10.55%.
HKSE:01702's ROE % is ranked better than 63.16% of 1580
companies
in the Chemicals industry
Industry Median: 5.205
vs HKSE:01702: 7.60
Dongguang Chemical (HKSE:01702) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Dongguang Chemical ROE % Related Terms
Dongguang Chemical ROE % Historical Data
* Premium members only.
The historical data trend for Dongguang Chemical's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Dongguang Chemical's ROE % distribution charts can be found below:
* The bar in red indicates where Dongguang Chemical's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Dongguang Chemical (HKSE:01702) has a ROE % of 7.21% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Dongguang Chemical and its competitors. This is 32% below median its historical median of 10.55. Over the past decade, Dongguang Chemical's ROE % has ranged from 2.49 to 20.02. According to the industry distribution chart, Dongguang Chemical ranks #582 out of 1580 companies in the Chemicals industry, placing it in the top 36.8%.
Is Dongguang Chemical's ROE % too high?
Dongguang Chemical's current ROE % of 7.21% is 32% below median its 10-year median of 10.55. Over the past 10 years, this metric has ranged from a low of 2.49 to a high of 20.02. The Chemicals industry median ROE % is 5.21. Dongguang Chemical's value of 7.21% is 38.5% above this industry median. Based on the distribution chart, Dongguang Chemical ranks #582 out of 1580 companies in the Chemicals industry, which is above the industry midpoint. 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 ROE % compare to DOW?
According to the Chemicals industry distribution chart, Dongguang Chemical ranks #582 out of 1580 companies for ROE %. This puts Dongguang Chemical in the upper half of its industry. The industry median ROE % is 5.21. Dongguang Chemical's value of 7.21% is 38.5% above this benchmark. Historically, Dongguang Chemical's own ROE % has ranged from 2.49 to 20.02 over the past decade. While the company's 10-year median is 10.55 vs. the industry median of 5.21, 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 ROE % for a Chemicals company?
The median ROE % among Chemicals companies is 5.21, based on 1,580 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dongguang Chemical's current ROE % of 7.21% is 38.5% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Dongguang Chemical and its competitors. For the Chemicals industry, the median ROE % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dongguang Chemical's current ROE % is 7.21%, which is 32% below median its own 10-year median of 10.55. 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 ROE % is 7.21%, which is 32% below median its 10-year median of 10.55 and 38.5% above the Chemicals industry median of 5.21. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Dongguang Chemical (HKSE:01702), the current ROE % 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$1.59 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:
ROE %: 7.21% (32% below median its 10-year median of 10.55)
GF Value™: HK$1.59 vs. price of HK$1.59 (0% below fair value)
Industry Position: 38.5% above the Chemicals median (#582 of 1580)
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.
78GF Score
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