SEHK:8175

Stock Analysis Report

China Digital Culture (Group)

Executive Summary

China Digital Culture (Group) Limited, an investment holding company, engages in licensing and sale of entertainment, and sports and music content in the People's Republic of China.

Risk Analysis

Earnings have declined by -60.42% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Does not have a meaningful market cap (HK$166M)



Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has China Digital Culture (Group)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8175's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.1%

8175

3.9%

HK Entertainment

1.6%

HK Market


1 Year Return

-63.3%

8175

0.8%

HK Entertainment

6.0%

HK Market

Return vs Industry: 8175 underperformed the Hong Kong Entertainment industry which returned 0.4% over the past year.

Return vs Market: 8175 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

8175IndustryMarket
7 Day-6.1%3.9%1.6%
30 Day-4.9%8.7%4.4%
90 Day-28.0%11.0%8.6%
1 Year-63.3%-63.3%2.1%0.8%9.9%6.0%
3 Year-81.4%-81.4%-26.2%-28.7%27.7%14.7%
5 Year-86.3%-86.3%-31.8%-38.4%21.7%1.4%

Price Volatility Vs. Market

How volatile is China Digital Culture (Group)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Digital Culture (Group) undervalued compared to its fair value and its price relative to the market?

0.18x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 8175 (HK$0.08) is trading above our estimate of fair value (HK$0.07)

Significantly Below Fair Value: 8175 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 8175 is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.

PE vs Market: 8175 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8175's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8175 is good value based on its PB Ratio (0.2x) compared to the HK Entertainment industry average (1.1x).


Next Steps

Future Growth

How is China Digital Culture (Group) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

65.0%

Forecasted Media industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China Digital Culture (Group) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has China Digital Culture (Group) performed over the past 5 years?

-60.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8175 is currently unprofitable.

Growing Profit Margin: 8175 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8175 is unprofitable, and losses have increased over the past 5 years at a rate of -60.4% per year.

Accelerating Growth: Unable to compare 8175's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8175 is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (-6.2%).


Return on Equity

High ROE: 8175 has a negative Return on Equity (-7.73%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Digital Culture (Group)'s financial position?


Financial Position Analysis

Short Term Liabilities: 8175's short term assets (HK$381.4M) exceed its short term liabilities (HK$270.3M).

Long Term Liabilities: 8175's short term assets (HK$381.4M) do not cover its long term liabilities (HK$466.7M).


Debt to Equity History and Analysis

Debt Level: 8175's debt to equity ratio (50%) is considered high.

Reducing Debt: Insufficient data to determine if 8175's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 8175 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8175's debt is not covered by short term assets (assets are 0.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 8175 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 8175 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is China Digital Culture (Group)'s current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.0%industryaverage3.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8175's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8175's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8175's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8175's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8175's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of China Digital Culture (Group)'s salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Chao Jiang (48yo)

0.08yrs

Tenure

0

Mr. Jiang Chao, ACCA, serves as Chief Executive Officer at China Digital Culture (Group) Limited since December 23, 2019. Mr. Jiang served as Vice Chairman and Executive Director at Coolpad Group Limited ( ...


Management Age and Tenure

1.4yrs

Average Tenure

48yo

Average Age

Experienced Management: 8175's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

3.7yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 8175's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: 8175 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$1,76024 Dec 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceHK$0.088
BuyHK$1,88010 Dec 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceHK$0.094
BuyHK$94010 Dec 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceHK$0.094
BuyHK$1,02003 Dec 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceHK$0.10
BuyHK$1,04003 Dec 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceHK$0.10
BuyHK$4,80003 Dec 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares50,000
Max PriceHK$0.096
BuyHK$2,14003 Dec 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceHK$0.11
BuyHK$2,24003 Dec 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceHK$0.11
BuyHK$2,21003 Dec 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceHK$0.11
BuyHK$2,12003 Dec 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceHK$0.11
BuyHK$4,52003 Dec 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares40,000
Max PriceHK$0.11
BuyHK$1,10003 Dec 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceHK$0.11
BuyHK$1,25010 Oct 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceHK$0.13
BuyHK$2,55010 Oct 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceHK$0.13
BuyHK$3,48910 Oct 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares30,000
Max PriceHK$0.12
BuyHK$1,11010 Oct 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceHK$0.11
BuyHK$1,17010 Oct 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceHK$0.12
BuyHK$2,60010 Oct 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceHK$0.13
BuyHK$2,85020 Sep 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceHK$0.14
BuyHK$4,00220 Sep 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares29,000
Max PriceHK$0.14
BuyHK$2,75020 Sep 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceHK$0.14
BuyHK$1,23020 Sep 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceHK$0.12
BuyHK$4,80005 Sep 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares40,000
Max PriceHK$0.12
BuyHK$3,59105 Sep 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares30,000
Max PriceHK$0.12
BuyHK$1,22005 Sep 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares10,000
Max PriceHK$0.12
BuyHK$3,90005 Sep 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares30,000
Max PriceHK$0.13
BuyHK$2,57015 Jul 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares20,000
Max PriceHK$0.13
BuyHK$8,29804 Jul 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares60,000
Max PriceHK$0.14
BuyHK$27,27504 Jul 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares260,000
Max PriceHK$0.10
BuyHK$9,17004 Jul 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares70,000
Max PriceHK$0.13
BuyHK$15,13204 Jul 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares130,000
Max PriceHK$0.12
BuyHK$24,15201 Jul 19
Tung Chi Hsu
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares181,000
Max PriceHK$0.14

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Chao Jiang (48yo)

    Chief Executive Officer

    • Tenure: 0.08yrs
  • Tung Chi Hsu (48yo)

    Executive Chairman

    • Tenure: 0.7yrs
    • Compensation: HK$1.91m
  • Dicky Tung (35yo)

    Company Secretary

    • Tenure: 1.4yrs
  • Jing Zhang (52yo)

    Executive Director

    • Tenure: 3.7yrs
    • Compensation: HK$240.00k
  • Franki Lai (54yo)

    Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$1.20m

Board Members

  • Vincent Kwok (56yo)

    Independent Non-Executive Director

    • Tenure: 15.3yrs
    • Compensation: HK$60.00k
  • Rex Wong (53yo)

    Independent Non-Executive Director

    • Tenure: 10.1yrs
    • Compensation: HK$60.00k
  • Tung Chi Hsu (48yo)

    Executive Chairman

    • Tenure: 0.7yrs
    • Compensation: HK$1.91m
  • Yanlin Gou (45yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: HK$60.00k
  • Jing Zhang (52yo)

    Executive Director

    • Tenure: 3.7yrs
    • Compensation: HK$240.00k
  • Franki Lai (54yo)

    Executive Director

    • Tenure: 3.5yrs
    • Compensation: HK$1.20m

Company Information

China Digital Culture (Group) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Digital Culture (Group) Limited
  • Ticker: 8175
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: HK$161.499m
  • Shares outstanding: 2.02b
  • Website: https://www.cdculture.com

Number of Employees


Location

  • China Digital Culture (Group) Limited
  • United Centre
  • 17th Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8175SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2003

Biography

China Digital Culture (Group) Limited, an investment holding company, engages in licensing and sale of entertainment, and sports and music content in the People's Republic of China. It operates through Entertainment, Sports, and Theme Park segments. The Entertainment segment engages in the business of training, nurturing, and managing eSports teams and eSports broadcasters; distribution of copyright-protected items; production of television drama series and talent management; provision of consultancy services in the cultural industry; and provision of entertainment-related services. The Sports segment is involved in the licensing of professional sports events content; and provision of marketing and promotional services to professional athletes. The Theme park segment operates film-based cultural parks and tourism projects. The company also engages in entertainment project planning and celebrity management activities; production of online streaming content. In addition, it engages in the celebrity and artists training course agency business; selling learning materials; and provision of consulting, and sponsorship and student tuition services. The company was formerly known as China Digital Licensing (Group) Limited. China Digital Culture (Group) Limited was incorporated in 2002 and is headquartered in Hong Kong, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/20 12:44
End of Day Share Price2020/01/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.