Digital China Holdings Limited, an investment holding company, provides information technology (IT) services primarily in Mainland China.
Good value with reasonable growth potential.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 861 exceeded the Hong Kong IT industry which returned -26.7% over the past year.
Return vs Market: 861 exceeded the Hong Kong Market which returned -19.8% over the past year.
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
3 weeks ago | Simply Wall StDid Changing Sentiment Drive Digital China Holdings's (HKG:861) Share Price Down By 46%?
1 month ago | Simply Wall StNeed To Know: Digital China Holdings Limited (HKG:861) Insiders Have Been Selling Shares
2 months ago | Simply Wall StExamining Digital China Holdings Limited’s (HKG:861) Weak Return On Capital Employed
Is Digital China Holdings undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 861 (HK$3.46) is trading below our estimate of fair value (HK$5.54)
Significantly Below Fair Value: 861 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 861 is poor value based on its PE Ratio (18.9x) compared to the IT industry average (13.1x).
PE vs Market: 861 is poor value based on its PE Ratio (18.9x) compared to the Hong Kong market (9.5x).
Price to Earnings Growth Ratio
PEG Ratio: 861 is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: 861 is good value based on its PB Ratio (0.6x) compared to the HK IT industry average (0.9x).
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 (26.7% per year) is above the savings rate (1.6%).
Earnings vs Market: 861's earnings (26.7% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 861's revenue (14.7% per year) is forecast to grow faster than the Hong Kong market (9.8% per year).
High Growth Revenue: 861's revenue (14.7% 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 (6.1%).
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$212.7M impacting its December 31 2019 financial results.
Growing Profit Margin: 861's current net profit margins (1.7%) are higher than last year (1%).
Past Earnings Growth Analysis
Earnings Trend: 861's earnings have declined by -18.4% per year over the past 5 years.
Accelerating Growth: 861's earnings growth over the past year (101.8%) exceeds its 5-year average (-18.4% per year).
Earnings vs Industry: 861 earnings growth over the past year (101.8%) exceeded the IT industry 5.5%.
Return on Equity
High ROE: 861's Return on Equity (3.6%) is considered low.
How is Digital China Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: 861's short term assets (HK$12.8B) exceed its short term liabilities (HK$10.9B).
Long Term Liabilities: 861's short term assets (HK$12.8B) exceed its long term liabilities (HK$2.1B).
Debt to Equity History and Analysis
Debt Level: 861's debt to equity ratio (40.6%) is considered high.
Reducing Debt: 861's debt to equity ratio has reduced from 74.8% to 40.6% over the past 5 years.
Debt Coverage: 861's debt is not well covered by operating cash flow (14%).
Interest Coverage: 861's interest payments on its debt are not well covered by EBIT (2.7x coverage).
What is Digital China Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 861's dividend (1.85%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.66%).
High Dividend: 861's dividend (1.85%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.15%).
Stability and Growth of Payments
Stable Dividend: 861's dividend payments have been volatile in the past 10 years.
Growing Dividend: 861's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (35%), 861's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 861's dividends in 3 years are forecast to be well covered by earnings (45% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Wei Guo (56yo)
Mr. Guo Wei has been the Chairman of Digital China Holdings Limited since December 19, 2007 and has been its Chief Executive Officer since June 8, 2018. Mr. Guo has been the Chairman and Acting President o ...
CEO Compensation Analysis
Compensation vs Market: Wei's total compensation ($USD223.17K) is below average for companies of similar size in the Hong Kong market ($USD491.81K).
Compensation vs Earnings: Wei's compensation has been consistent with company performance over the past year.
|Chairman & CEO||1.83yrs||HK$1.73m||10.84% HK$633.9m|
|Independent Non-Executive Director||13.67yrs||HK$300.00k||no data|
|Vice Chairman||1.83yrs||HK$3.99m||0.21% HK$12.5m|
|Independent Non-Executive Director||9.58yrs||HK$300.00k||no data|
|Independent Non-Executive Director||5.92yrs||no data||no data|
|Independent Non-Executive Director||6.08yrs||HK$300.00k||no data|
|Non-Executive Director||2.33yrs||no data||no data|
|Non-Executive Director||2.33yrs||no data||no data|
|Independent Non-Executive Director||1.83yrs||HK$150.00k||no data|
Experienced Board: 861's board of directors are considered experienced (5.9 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$5.850b
- Shares outstanding: 1.67b
- Website: https://www.dcholdings.com
Number of Employees
- Digital China Holdings Limited
- Fortis Tower
- 31st Floor
- 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 Chain Business, Sm@rt City Business, and Other Business. It 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. The company also provides IT logistics services; and builds an urban-level big data platform for the city to solve medical, transportation, energy supply, and social security issues. In addition, it provides financial services, such as financing, leasing, guarantee, etc. to internal and external customers; and engages in assets operations, other businesses, and incubation and strategic investments. Further, the company develops and constructs science and technology park; engages in data integration and management software sales businesses; and provision of systems integration and network optimization services. Additionally, it offers maintenance and outsourcing, consultancy, and training services; and sell financial specialized equipment and surveying service software. Digital China Holdings Limited was founded in 2000 and is headquartered in Wanchai, Hong Kong.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/08 12:42|
|End of Day Share Price||2020/04/08 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.