Digital China Holdings Limited, an investment holding company, provides information technology (IT) services primarily in Mainland China. More Details
Excellent balance sheet with proven track record.
Share Price & News
How has Digital China Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 861 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 861's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: 861 exceeded the Hong Kong IT industry which returned 12.5% over the past year.
Return vs Market: 861 exceeded the Hong Kong Market which returned 7.5% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Digital China Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall StHow Many Digital China Holdings Limited (HKG:861) Shares Did Insiders Buy, In The Last Year?
2 weeks ago | Simply Wall StIs Digital China Holdings Limited's (HKG:861) 1.1% Dividend Worth Your Time?
1 month ago | Simply Wall StWhat Is The Ownership Structure Like For Digital China Holdings Limited (HKG:861)?
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$6.14) is trading above our estimate of fair value (HK$5.45)
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 (18.5x) compared to the HK IT industry average (13.4x).
PE vs Market: 861 is poor value based on its PE Ratio (18.5x) compared to the Hong Kong market (11.5x).
Price to Earnings Growth Ratio
PEG Ratio: 861 is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: 861's PB Ratio (1.2x) is in line with the HK IT industry average.
How is Digital China Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 861's forecast earnings growth (16.6% per year) is above the savings rate (1.5%).
Earnings vs Market: 861's earnings (16.6% per year) are forecast to grow slower than the Hong Kong market (21% per year).
High Growth Earnings: 861's earnings are forecast to grow, but not significantly.
Revenue vs Market: 861's revenue (18.5% per year) is forecast to grow faster than the Hong Kong market (14.1% per year).
High Growth Revenue: 861's revenue (18.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 861's Return on Equity is forecast to be low in 3 years time (6.6%).
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$470.0M impacting its June 30 2020 financial results.
Growing Profit Margin: 861's current net profit margins (2.9%) are higher than last year (0.08%).
Past Earnings Growth Analysis
Earnings Trend: 861's earnings have grown significantly by 21.9% per year over the past 5 years.
Accelerating Growth: 861's earnings growth over the past year (4141.8%) exceeds its 5-year average (21.9% per year).
Earnings vs Industry: 861 earnings growth over the past year (4141.8%) exceeded the IT industry -7.6%.
Return on Equity
High ROE: 861's Return on Equity (5.7%) is considered low.
How is Digital China Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: 861's short term assets (HK$12.5B) exceed its short term liabilities (HK$9.6B).
Long Term Liabilities: 861's short term assets (HK$12.5B) exceed its long term liabilities (HK$2.7B).
Debt to Equity History and Analysis
Debt Level: 861's debt to equity ratio (35.5%) is considered satisfactory.
Reducing Debt: 861's debt to equity ratio has increased from 31.4% to 35.5% over the past 5 years.
Debt Coverage: 861's debt is well covered by operating cash flow (28.5%).
Interest Coverage: 861's interest payments on its debt are well covered by EBIT (3.1x coverage).
What is Digital China Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 861's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.13%).
High Dividend: 861's dividend (1.17%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.66%).
Stability and Growth of Payments
Stable Dividend: 861's dividend payments have been volatile in the past 10 years.
Growing Dividend: 861's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (30.2%), 861's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 861's dividends in 3 years are forecast to be well covered by earnings (42.5% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Wei Guo (57 yo)
Mr. Wei Guo has been the Chairman of Digital China Holdings Limited since December 19, 2007 and has been its Chief Executive Officer since June 8, 2018. Mr. Guo has been the Chairman and President of Digit...
CEO Compensation Analysis
Compensation vs Market: Wei's total compensation ($USD0.00) is below average for companies of similar size in the Hong Kong market ($USD606.01K).
Compensation vs Earnings: Wei's compensation has been consistent with company performance over the past year.
|Executive Vice Chairman||2.58yrs||HK$4.10m||0.21% |
|Chairman & CEO||2.58yrs||HK$1.73m||10.89% |
|Independent Non-Executive Director||14.42yrs||HK$300.00k||no data|
|Independent Non-Executive Director||10.33yrs||HK$300.00k||no data|
|Independent Non-Executive Director||6.67yrs||no data||no data|
|Independent Non-Executive Director||6.83yrs||HK$300.00k||no data|
|Non-Executive Director||3.08yrs||no data||no data|
|Independent Non-Executive Director||2.58yrs||HK$300.00k||no data|
|Non-Executive Director||0.58yr||no data||no data|
Experienced Board: 861's board of directors are considered experienced (6.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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 company bio, 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$10.269b
- Shares outstanding: 1.67b
- Website: https://www.dcholdings.com
Number of Employees
- Digital China Holdings Limited
- Fortis Tower
- 31st Floor
- Wan Chai
- Hong Kong
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|DCHI.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Jun 2001|
|861||SEHK (The Stock Exchange of Hong Kong Ltd.)||Yes||Ordinary Shares||HK||HKD||Jun 2001|
|DIN||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Jun 2001|
|861||SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)||Yes||Ordinary Shares||HK||HKD||Jun 2001|
|861||SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)||Yes||Ordinary Shares||HK||HKD||Jun 2001|
|910861||TSEC (Taiwan Stock Exchange)||TDR EACH REPR 0.5 SHS||TW||TWD||Nov 2010|
|DCHI.Y||OTCPK (Pink Sheets LLC)||UNSPONSORED ADR||US||USD||Jun 2012|
Digital China Holdings Limited, an investment holding company, provides information technology (IT) services primarily in Mainland China. The company operates through four segments: DCITS, Smart Industry C...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/01/16 10:11|
|End of Day Share Price||2021/01/15 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.