Digital China Holdings Limited, an investment holding company, provides information technology (IT) services primarily in Mainland China.
Digital China Holdings Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||HK$4.26|
|52 Week High||HK$4.08|
|52 Week Low||HK$7.06|
|1 Month Change||-1.16%|
|3 Month Change||-4.91%|
|1 Year Change||-25.78%|
|3 Year Change||16.71%|
|5 Year Change||-34.56%|
|Change since IPO||6.50%|
Recent News & Updates
Investors Could Be Concerned With Digital China Holdings' (HKG:861) Returns On Capital
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Should You Be Adding Digital China Holdings (HKG:861) To Your Watchlist Today?
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...
|861||HK IT||HK Market|
Return vs Industry: 861 underperformed the Hong Kong IT industry which returned 10.9% over the past year.
Return vs Market: 861 underperformed the Hong Kong Market which returned 5.9% over the past year.
Stable Share Price: 861 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: 861's weekly volatility (5%) has been stable over the past year.
About the Company
Digital China Holdings Limited, an investment holding company, provides information technology (IT) services primarily in Mainland China. The company operates through five segments: DCITS, Smart Industry Chain Business, Sm@rt City Business, Investing Business, and Other Business. The DCITS segment provides system development, maintenance, industry cloud, and infrastructure development services for the banking industry; and technical, application software development, and industry cloud construction and operation services for government, enterprises, and agriculture clients.
Digital China Holdings Fundamentals Summary
|861 fundamental statistics|
Is 861 overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|861 income statement (TTM)|
|Cost of Revenue||HK$16.50b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.35|
|Net Profit Margin||2.93%|
How did 861 perform over the long term?See historical performance and comparison
2.8%Current Dividend Yield
Is Digital China Holdings undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 861 (HK$4.26) is trading above our estimate of fair value (HK$2.93)
Significantly Below Fair Value: 861 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 861 is poor value based on its PE Ratio (12.1x) compared to the Hong Kong IT industry average (11.7x).
PE vs Market: 861 is poor value based on its PE Ratio (12.1x) compared to the Hong Kong market (9.7x).
Price to Earnings Growth Ratio
PEG Ratio: 861 is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: 861 is good value based on its PB Ratio (0.7x) compared to the HK IT industry average (1.4x).
How is Digital China Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 861's forecast earnings growth (27.1% per year) is above the savings rate (1.5%).
Earnings vs Market: 861's earnings (27.1% per year) are forecast to grow faster than the Hong Kong market (17.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 861's revenue (23.3% per year) is forecast to grow faster than the Hong Kong market (12.5% per year).
High Growth Revenue: 861's revenue (23.3% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if 861's Return on Equity is forecast to be high in 3 years time
How has Digital China Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 861 has a large one-off gain of HK$561.3M impacting its June 30 2021 financial results.
Growing Profit Margin: 861's current net profit margins (2.9%) are lower than last year (2.9%).
Past Earnings Growth Analysis
Earnings Trend: 861 has become profitable over the past 5 years, growing earnings by 65.8% per year.
Accelerating Growth: 861's earnings growth over the past year (8.2%) is below its 5-year average (65.8% per year).
Earnings vs Industry: 861 earnings growth over the past year (8.2%) underperformed the IT industry 18.9%.
Return on Equity
High ROE: 861's Return on Equity (6.6%) is considered low.
How is Digital China Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: 861's short term assets (HK$14.0B) exceed its short term liabilities (HK$9.8B).
Long Term Liabilities: 861's short term assets (HK$14.0B) exceed its long term liabilities (HK$3.5B).
Debt to Equity History and Analysis
Debt Level: 861's debt to equity ratio (25.3%) is considered satisfactory.
Reducing Debt: 861's debt to equity ratio has reduced from 88% to 25.3% over the past 5 years.
Debt Coverage: 861's debt is well covered by operating cash flow (25.8%).
Interest Coverage: 861's interest payments on its debt are well covered by EBIT (4.4x coverage).
What is Digital China Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 861's dividend (2.82%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.22%).
High Dividend: 861's dividend (2.82%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).
Stability and Growth of Payments
Stable Dividend: 861's dividend payments have been volatile in the past 10 years.
Growing Dividend: 861's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32.1%), 861's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Wei Guo (58 yo)
Mr. Wei Guo has been the Chairman of Digital China Holdings Limited since December 19, 2007 and has been its Chief Executive Officer since June 8, 2018. Mr. Guo has been the Chairman and President of Digit...
CEO Compensation Analysis
Compensation vs Market: Wei's total compensation ($USD4.58M) is above average for companies of similar size in the Hong Kong market ($USD442.78K).
Compensation vs Earnings: Wei's compensation has increased by more than 20% in the past year.
Experienced Board: 861's board of directors are considered experienced (3.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 861 insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Digital China Holdings Limited's employee growth, exchange listings and data sources
- Name: Digital China Holdings Limited
- Ticker: 861
- Exchange: SEHK
- Founded: 2000
- Industry: IT Consulting and Other Services
- Sector: Software
- Market Cap: HK$7.129b
- Shares outstanding: 1.67b
- Website: https://www.dcholdings.com
Number of Employees
- Digital China Holdings Limited
- Fortis Tower
- 31st Floor
- Wan Chai
- Hong Kong
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/25 16:40|
|End of Day Share Price||2021/10/25 00:00|
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.