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Digital China Holdings

OTCPK:DCHI.Y
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DCHI.Y
OTCPK
HK$7B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Digital China Holdings Limited, an investment holding company, provides information technology (IT) services primarily in Mainland China. The last earnings update was 26 days ago. More info.


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DCHI.Y Share Price and Events
7 Day Returns
0%
OTCPK:DCHI.Y
-0.8%
US IT
-0.3%
US Market
1 Year Returns
-
OTCPK:DCHI.Y
22.9%
US IT
7%
US Market
DCHI.Y Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Digital China Holdings (DCHI.Y) 0% 0% - - -47% -
US IT -0.8% 3% 16% 22.9% 79.8% 108%
US Market -0.3% 2% 8.5% 7% 37.7% 46.8%
1 Year Return vs Industry and Market
  • No trading data on DCHI.Y.
  • No trading data on DCHI.Y.
Price Volatility
DCHI.Y
Industry
5yr Volatility vs Market
Related Companies

DCHI.Y Value

 Is Digital China Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Digital China Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Digital China Holdings.

OTCPK:DCHI.Y Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:DCHI.Y
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6.7%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.061 (1 + (1- 25%) (88.96%))
1.515
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.52
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.515 * 6.65%)
12.81%

Discounted Cash Flow Calculation for OTCPK:DCHI.Y using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Digital China Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OTCPK:DCHI.Y DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 12.81%)
2019 574.60 Analyst x1 509.37
2020 238.40 Analyst x1 187.35
2021 205.23 Est @ -13.91% 142.97
2022 186.92 Est @ -8.92% 115.44
2023 176.78 Est @ -5.43% 96.78
2024 171.51 Est @ -2.98% 83.24
2025 169.34 Est @ -1.27% 72.85
2026 169.22 Est @ -0.07% 64.54
2027 170.53 Est @ 0.77% 57.66
2028 172.85 Est @ 1.36% 51.81
Present value of next 10 years cash flows HK$1,382.00
OTCPK:DCHI.Y DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$172.85 × (1 + 2.73%) ÷ (12.81% – 2.73%)
HK$1,762.43
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$1,762.43 ÷ (1 + 12.81%)10
HK$528.23
OTCPK:DCHI.Y Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$1,382.00 + HK$528.23
HK$1,910.23
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$1,910.23 / 1,670.98
HK$1.14
OTCPK:DCHI.Y Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:DCHI.Y represents 0.55875x of SEHK:861
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.55875x
Value per Share
(Listing Adjusted, USD)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 1.14 x 0.55875
$0.64
Value per share (USD) From above. $0.64
Current discount Discount to share price of $2.33
= -1 x ($2.33 - $0.64) / $0.64
-264.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Digital China Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Digital China Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Digital China Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:DCHI.Y PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.09
SEHK:861 Share Price ** SEHK (2019-02-01) in HKD HK$4.17
United States of America IT Industry PE Ratio Median Figure of 77 Publicly-Listed IT Companies 31.72x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Digital China Holdings.

OTCPK:DCHI.Y PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:861 Share Price ÷ EPS (both in HKD)

= 4.17 ÷ 0.09

46.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Digital China Holdings is overvalued based on earnings compared to the US IT industry average.
  • Digital China Holdings is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Digital China Holdings's expected growth come at a high price?
Raw Data
OTCPK:DCHI.Y PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 46.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
52.5%per year
United States of America IT Industry PEG Ratio Median Figure of 65 Publicly-Listed IT Companies 2.64x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

OTCPK:DCHI.Y PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 46.53x ÷ 52.5%

0.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Digital China Holdings is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Digital China Holdings's assets?
Raw Data
OTCPK:DCHI.Y PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$5.33
SEHK:861 Share Price * SEHK (2019-02-01) in HKD HK$4.17
United States of America IT Industry PB Ratio Median Figure of 125 Publicly-Listed IT Companies 4.35x
United States of America Market PB Ratio Median Figure of 5,184 Publicly-Listed Companies 1.91x
OTCPK:DCHI.Y PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:861 Share Price ÷ Book Value per Share (both in HKD)

= 4.17 ÷ 5.33

0.78x

* Primary Listing of Digital China Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Digital China Holdings is good value based on assets compared to the US IT industry average.
X
Value checks
We assess Digital China Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Digital China Holdings has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

DCHI.Y Future Performance

 How is Digital China Holdings expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
52.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Digital China Holdings expected to grow at an attractive rate?
  • Digital China Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Digital China Holdings's earnings growth is expected to exceed the United States of America market average.
  • Digital China Holdings's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:DCHI.Y Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:DCHI.Y Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 52.5%
OTCPK:DCHI.Y Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 14%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 15.3%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:DCHI.Y Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:DCHI.Y Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 20,259 697 501 1
2019-12-31 17,479 610 382 1
OTCPK:DCHI.Y Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 15,254 150
2018-09-30 14,877 163
2018-06-30 14,500 933 176
2018-03-31 13,873 915 -118
2017-12-31 13,247 896 -413
2017-09-30 12,901 -454
2017-06-30 12,555 -603 -495
2017-03-31 12,403 -284 -333
2016-12-31 12,251 36 -170
2016-09-30 11,189 -134
2016-06-30 11,361 -1,940 -55
2016-03-31 10,640 -1,520 110

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Digital China Holdings's earnings are expected to grow significantly at over 20% yearly.
  • Digital China Holdings's revenue is expected to grow by 14% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:DCHI.Y Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Digital China Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:DCHI.Y Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.30 0.30 0.30 1.00
2019-12-31 0.23 0.23 0.23 1.00
OTCPK:DCHI.Y Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.09
2018-09-30 0.10
2018-06-30 0.11
2018-03-31 -0.08
2017-12-31 -0.29
2017-09-30 -0.34
2017-06-30 -0.40
2017-03-31 -0.28
2016-12-31 -0.15
2016-09-30 -0.12
2016-06-30 -0.05
2016-03-31 0.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Digital China Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Digital China Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Digital China Holdings has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

DCHI.Y Past Performance

  How has Digital China Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Digital China Holdings's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Digital China Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Digital China Holdings has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Digital China Holdings has become profitable in the last year making it difficult to compare the US IT industry average.
Earnings and Revenue History
Digital China Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Digital China Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:DCHI.Y Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 15,254.50 149.59 1,913.90
2018-09-30 14,877.10 162.90 1,866.85
2018-06-30 14,499.69 176.22 1,819.80
2018-03-31 13,873.13 -118.39 1,908.41
2017-12-31 13,246.57 -413.01 1,997.02
2017-09-30 12,900.85 -454.01 2,028.91
2017-06-30 12,555.12 -495.02 2,060.79
2017-03-31 12,403.24 -332.66 1,847.60
2016-12-31 12,251.36 -170.31 1,634.41
2016-09-30 11,188.99 -133.97 1,547.18
2016-06-30 11,360.78 -54.99 1,300.12
2016-03-31 10,640.24 109.98 1,260.83
2015-12-31 10,630.67 199.47 1,191.96
2015-09-30 12,434.18 328.43 1,069.72
2015-06-30 11,700.25 307.71 1,005.38
2015-03-31 68,738.69 693.79 3,288.21
2014-12-31 12,156.23 308.78 1,005.85
2014-09-30 26,639.52 -383.79 1,679.04
2014-06-30 41,406.16 -148.28 2,100.31
2014-03-31 54,573.58 117.24 2,588.05
2013-12-31 69,089.92 280.49 3,395.69
2013-09-30 69,724.21 1,259.31 3,275.98
2013-06-30 71,735.33 1,327.65 3,485.97
2013-03-31 73,498.91 1,367.37 3,586.70
2012-12-31 73,942.36 1,364.93 3,712.75
2012-09-30 73,585.12 1,320.57 3,791.30
2012-06-30 72,058.20 1,288.25 3,827.32

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Digital China Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Digital China Holdings used its assets less efficiently than the US IT industry average last year based on Return on Assets.
  • It is difficult to establish if Digital China Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Digital China Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Digital China Holdings has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

DCHI.Y Health

 How is Digital China Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Digital China Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Digital China Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Digital China Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Digital China Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Digital China Holdings Company Filings, last reported 3 months ago.

OTCPK:DCHI.Y Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 12,396.70 6,198.67 3,491.21
2018-09-30 12,396.70 6,198.67 3,491.21
2018-06-30 13,092.02 6,723.77 2,188.06
2018-03-31 13,092.02 6,723.77 2,188.06
2017-12-31 12,794.87 7,880.93 4,947.42
2017-09-30 12,794.87 7,880.93 4,947.42
2017-06-30 11,196.54 9,566.15 5,681.65
2017-03-31 11,196.54 9,566.15 5,681.65
2016-12-31 10,471.91 7,664.89 6,116.19
2016-09-30 10,471.91 7,664.89 6,116.19
2016-06-30 8,980.57 7,918.61 4,943.89
2016-03-31 8,980.57 7,918.61 4,943.89
2015-12-31 11,294.32 6,547.45 3,662.47
2015-09-30 11,067.69 5,629.08 2,266.51
2015-06-30 11,035.49 3,421.32 2,477.80
2015-03-31 11,000.75 8,192.92 3,972.74
2014-12-31 10,864.18 8,124.99 6,312.42
2014-09-30 9,503.49 8,117.28 4,296.56
2014-06-30 9,223.22 7,477.60 4,278.62
2014-03-31 9,255.84 7,384.18 6,034.30
2013-12-31 9,046.39 6,034.04 4,196.17
2013-09-30 8,953.96 5,765.14 3,901.25
2013-06-30 9,138.87 5,416.63 4,138.70
2013-03-31 8,671.13 5,515.41 4,189.52
2012-12-31 8,498.77 5,434.62 4,197.77
2012-09-30 8,044.38 4,763.61 3,495.40
2012-06-30 7,991.22 4,412.88 4,156.98
  • Digital China Holdings's level of debt (50%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (66.8% vs 50% today).
  • Debt is not well covered by operating cash flow (15%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Digital China Holdings's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Digital China Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Digital China Holdings has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

DCHI.Y Dividends

 What is Digital China Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.74%
Current annual income from Digital China Holdings dividends. Estimated to be 1.25% next year.
If you bought $2,000 of Digital China Holdings shares you are expected to receive $15 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Digital China Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
  • Digital China Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:DCHI.Y Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:DCHI.Y Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.06 1.00
2019-12-31 0.04 1.00
OTCPK:DCHI.Y Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-27 0.031 0.739
2016-09-27 0.000 0.000
2016-08-30 0.000 0.000
2016-04-26 0.000 0.000
2016-03-31 0.000 0.000
2015-04-17 0.200 2.288
2015-03-30 0.200 2.259
2014-04-10 0.178 2.451
2014-03-25 0.178 2.303
2013-07-05 0.388 4.428
2012-07-09 0.398 3.376
2012-06-12 0.398 2.922
2011-06-30 0.323 2.538
2011-06-14 0.323 2.571
2010-07-26 0.283 1.991
2010-07-20 0.283 2.207
2009-06-17 0.146 1.628
2009-04-23 0.146 3.100

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Digital China Holdings is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Digital China Holdings is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Digital China Holdings's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Digital China Holdings's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.9x coverage).
X
Income/ dividend checks
We assess Digital China Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Digital China Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Digital China Holdings has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

DCHI.Y Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Wei Guo
COMPENSATION HK$119,069,000
AGE 55
TENURE AS CEO 0.8 years
CEO Bio

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 of Digital China Group Co., Ltd. (formerly known as Shenzhen Shenxin Taifeng Group Co., Ltd.). In addition, he is a Director of Kosalaki Investments Limited and is also a director of Value Global Investments Limited. Mr. Guo has been a Director at Digital China Group Co., Ltd. since April 25, 2018. Mr. Guo serves as a Vice President of Sino Stride Technology Co Ltd. Mr. Guo is the Founder of Beijing Digital China Information Technology Academe Co. Ltd. He serves as General Manager of Xingda Computer at Sino Stride Technology Holdings Ltd. He serves at Lenovo Group Limited. He served as Chief Executive Officer of Digital China Holdings Ltd since February 2001 until April 1, 2011 and was responsible for the Strategic Development and Management. He has over 30 years of experience in business strategy development and business management. Mr. Guo joined Legend group in 1988 and served as its Senior Vice President. He served as the President of Digital China Holdings Ltd. from February 2001 to February 2008. He served as Deputy General Manager at Zhejiang University Computer Company. He serves as the Chairman of the Board at Digital China Financial Software Ltd. and Digital China Information Service Company Ltd. He served as Vice Chairman of Digital China Holdings Ltd. since February 2001. He has been a Director of Digital China Financial Software Ltd., since March 28, 2002. Mr. Guo serves as an External Director of King Tech Corp. He serves as Director of Sino Stride Technology Co Ltd., (Formerly Zhejiang Sino Stride) and Executive Director of Digital China Holdings Ltd. He served as a Director of SJI Inc. He served as Director of Digiwin Software Co., Ltd. from April 16, 2011 to April 15, 2014; Independent Director of Shanghai Pudong Development Bank from August 26, 2010 to October 11, 2015; and Independent Director of Taikang Life Insurance Co., Ltd. from July 24, 2012 to July 29, 2017. He served as and Non-Executive Director of HC International, Inc. from June 10, 2011 to September 12, 2016. He served as Independent Non Executive Director at HC International Inc. from March 8, 2002 to June 10, 2011. Mr. Guo was an Independent Non-executive Director of China Southern Airlines Company Limited. Besides, Mr. Guo is a member of the 4th Advisory Committee for State Informatization. He was a Standing Committee Member of the 12th National Committee of the Chinese People’s Political Consultative Conference, the Chairman of Beijing Informatization Association and the Chairman of the 6th Council of China Non-Governmental Science Technology Entrepreneurs Association. He served as Executive Director of Legend group. He serves as Vice President of the Chinese Young Entrepreneurs Association and the Vice President of Chinese Young Technology Professional Association. He taught in the Light and Electricity Research Institute. Mr. Guo was awarded such major prizes included China’s Top Ten Outstanding Youths in Technology Innovation (1998), Future Economic Leader of China (2003), and the First Annual China Young Entrepreneurs Creative Management Golden Honour (2005). He was also selected as the 50 Most Powerful Business people in China by Fortune Magazine (Chinese version) in 2011 and 2012. In 2002, he was awarded China's Top Ten Outstanding Youth, (Practical and Outstanding Youth of Achievement) and Top Ten Most Valuable Manager in China. Mr. Guo obtained a Master's degree from the Graduate School of the Chinese Academy of Sciences in 1988. He graduated from the College of Engineering at the University of Science and Technology of China with MS degree in Management. He holds Master's Degree from Zhejiang University.

CEO Compensation
  • Wei's compensation has increased in line with Digital China Holdings recently becoming profitable.
  • Wei's remuneration is higher than average for companies of similar size in United States of America.
Management Team

Wei Guo

TITLE
Chairman & CEO
COMPENSATION
HK$119M
AGE
55
TENURE
0.8 yrs

Yun Xie

TITLE
Chief Technology Officer
AGE
54

Yan Li

TITLE
Head of Corporate Planning
AGE
45

Weijun Fei

TITLE
Regional Head of Northern China and Assistant President
AGE
53

Shengrui Liu

TITLE
Chief Executive Officer of Digital China Financial Software Ltd.
AGE
53

Chi Wong

TITLE
Company Secretary
AGE
51
TENURE
18.2 yrs

Jing Zhang

TITLE
Assistant President and President of Southern China Business
AGE
39
Board of Directors Tenure

Average tenure and age of the Digital China Holdings board of directors in years:

4.9
Average Tenure
52.5
Average Age
  • The tenure for the Digital China Holdings board of directors is about average.
Board of Directors

Yang Lin

TITLE
Vice Chairman
COMPENSATION
HK$31M
AGE
52
TENURE
0.8 yrs

Wei Guo

TITLE
Chairman & CEO
COMPENSATION
HK$119M
AGE
55
TENURE
11.3 yrs

Francis Wong

TITLE
Independent Non-Executive Director
COMPENSATION
HK$300K
AGE
53
TENURE
12.7 yrs

John Liu

TITLE
Independent Non-Executive Director
COMPENSATION
HK$300K
AGE
54
TENURE
5.1 yrs

Hope Ni

TITLE
Independent Non-Executive Director
COMPENSATION
HK$300K
AGE
46
TENURE
8.6 yrs

Xiaoyan Yan

TITLE
Independent Non-Executive Director
AGE
67
TENURE
4.9 yrs

Ziping Yu

TITLE
Non-Executive Director
AGE
46
TENURE
1.3 yrs

Jing Peng

TITLE
Non-Executive Director
TENURE
1.3 yrs

William King

TITLE
Independent Non-Executive Director
AGE
52
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Digital China Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Digital China Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

DCHI.Y News

Simply Wall St News

DCHI.Y Company Info

Description

Digital China Holdings Limited, an investment holding company, provides information technology (IT) services primarily in Mainland China. It operates in three segments: DCITS, Supply Chain Services, and New Business. The company offers proprietary software, services, cloud computing, and big data analysis with the strategy of integrating Sm@rt city and Sm@rt agriculture. It also provides intermediary and backstage logistics services for corporate customers, e-commerce platforms, branded service providers, and individuals; and Sm@rt city services for city administrators, enterprises, and citizens based on the urban information management center, integrated citizen service platform, integrated enterprise service platform, and integrated city administration platform, as well as financial services, such as financing, factoring, leasing, guarantee, etc. to third party customers. In addition, the company offers logistics, finance lease, data integration and management software sale, systems integration, application software development, maintenance and outsourcing, consultancy and training, financial specialized equipment sale, surveying service software, and network optimization services. Further, it holds trademarks; and develops and constructs science and technology parks. The company was incorporated in 2000 and is headquartered in Quarry Bay, Hong Kong.

Details
Name: Digital China Holdings Limited
DCHI.Y
Exchange: OTCPK
Founded: 2000
HK$888,233,440
1,670,977,976
Website: http://www.dcholdings.com.hk
Address: Digital China Holdings Limited
Devon House,
Suite 2008, 20th Floor,
Quarry Bay,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 861 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 01. Jun 2001
OTCPK DCHI.F Ordinary Shares Pink Sheets LLC US USD 01. Jun 2001
DB DIN Ordinary Shares Deutsche Boerse AG DE EUR 01. Jun 2001
SHSC 861 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 01. Jun 2001
SZSC 861 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 01. Jun 2001
OTCPK DCHI.Y UNSPONSORED ADR Pink Sheets LLC US USD 07. Jun 2012
TSEC 910861 TDR EACH REPR 0.5 SHS Taiwan Stock Exchange TW TWD 24. Nov 2010
Number of employees
Current staff
Staff numbers
11,000
Digital China Holdings employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 00:23
End of day share price update: 2019/02/01 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/03/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.