Digital China Holdings Limited

SHSC:861 Stock Report

Market Cap: HK$5.8b

Digital China Holdings Valuation

Is 861 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 861 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 861 (HK$3.45) is trading below our estimate of fair value (HK$5.74)

Significantly Below Fair Value: 861 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 861?

Key metric: As 861 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 861. This is calculated by dividing 861's market cap by their current revenue.
What is 861's PS Ratio?
PS Ratio0.3x
SalesCN¥18.61b
Market CapCN¥5.36b

Price to Sales Ratio vs Peers

How does 861's PS Ratio compare to its peers?

The above table shows the PS ratio for 861 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average11.2x
2495 Hubei Voicecomm Technology
7.3xn/aHK$7.1b
2479 Tianju Dihe (Suzhou) Data
6.4xn/aHK$3.6b
6657 Baiwang
11.7xn/aHK$8.3b
1782 International Business Digital Technology
19.5xn/aHK$2.6b
861 Digital China Holdings
0.3x9.8%HK$5.8b

Price-To-Sales vs Peers: 861 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (11.2x).

Price to Sales Ratio vs Industry

How does 861's PS Ratio compare vs other companies in the HK IT Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
1147 Edensoft Holdings
0.2xn/aUS$18.91m
1460 ICO Group
0.1xn/aUS$16.68m
862 Vision Values Holdings
0.2xn/aUS$12.60m
8319 Expert Systems Holdings
0.08xn/aUS$10.73m
No more companies available in this PS range
861 0.3xIndustry Avg. 1.1xNo. of Companies6PS00.81.62.43.24+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 861 is good value based on its Price-To-Sales Ratio (0.3x) compared to the Hong Kong IT industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is 861's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

861 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.8x

Price-To-Sales vs Fair Ratio: 861 is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 861 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$3.45
HK$4.50
+30.3%
25.3%HK$5.98HK$3.22n/a3
Nov ’25HK$2.81
HK$4.50
+60.0%
25.3%HK$5.98HK$3.22n/a3
Oct ’25HK$2.96
HK$4.50
+51.9%
25.3%HK$5.98HK$3.22n/a3
Sep ’24n/a
HK$4.74
0%
9.7%HK$5.20HK$4.28HK$3.212
Aug ’24n/a
HK$4.74
0%
9.7%HK$5.20HK$4.28HK$3.192
Jul ’24n/a
HK$4.74
0%
9.7%HK$5.20HK$4.28HK$3.342
Jun ’24n/a
HK$4.74
0%
9.7%HK$5.20HK$4.28HK$3.472
May ’24n/a
HK$4.74
0%
9.7%HK$5.20HK$4.28HK$2.872
Apr ’24n/a
HK$6.05
0%
22.8%HK$8.00HK$4.96HK$2.983
Mar ’24n/a
HK$6.05
0%
22.8%HK$8.00HK$4.96HK$2.783

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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