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Digital China Holdings Limited (HK:0861)
:0861
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Digital China Holdings (0861) AI Stock Analysis

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HK:0861

Digital China Holdings

(OTC:0861)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
HK$3.00
▼(-0.99% Downside)
Digital China Holdings faces significant financial challenges, with declining revenues and negative profit margins being the most impactful factors. Technical analysis shows limited momentum, and the valuation is hindered by a negative P/E ratio, although the dividend yield provides some support. The absence of earnings call insights and corporate events leaves these areas unaddressed.

Digital China Holdings (0861) vs. iShares MSCI Hong Kong ETF (EWH)

Digital China Holdings Business Overview & Revenue Model

Company DescriptionDigital China Holdings Limited is a leading information technology services provider in China, specializing in digital transformation solutions. The company operates primarily in sectors such as cloud computing, big data, and IT services, offering a wide range of products and services including IT infrastructure, software development, and system integration. Digital China is committed to driving digital innovation across various industries, leveraging its extensive technology portfolio to enhance operational efficiency and customer experience.
How the Company Makes MoneyDigital China generates revenue through multiple channels, primarily by providing IT services and solutions to businesses and government entities. Key revenue streams include cloud services, where the company offers infrastructure as a service (IaaS) and platform as a service (PaaS) solutions, as well as software licensing and maintenance services. Additionally, the company earns income from system integration projects, which involve customizing IT solutions for clients. Strategic partnerships with major technology firms and investments in emerging technologies further bolster its earnings potential, enabling the company to tap into new markets and enhance its service offerings.

Digital China Holdings Financial Statement Overview

Summary
Overall, Digital China Holdings is facing financial challenges, marked by declining revenues, negative profit margins, and a concerning lack of cash flow in 2024. The balance sheet remains relatively stable, but the company's ability to generate returns and maintain liquidity is under significant pressure.
Income Statement
45
Neutral
Digital China Holdings has experienced declining revenues, with a negative revenue growth rate from 2023 to 2024. The gross profit margin for 2024 is approximately 13.76%, which is lower compared to prior years. The company posted a net loss in 2024, resulting in a negative net profit margin. There is a significant decline in EBIT and EBITDA margins, indicating challenges in maintaining operational efficiency.
Balance Sheet
55
Neutral
The company's debt-to-equity ratio is relatively stable, but there is an increasing trend in total debt over the years. The equity ratio for 2024 stands at approximately 26.13%, reflecting a moderate level of equity financing. However, the return on equity is negative due to the net loss, indicating inefficiency in generating returns for shareholders.
Cash Flow
30
Negative
The absence of operating and free cash flow in 2024 highlights severe cash flow management issues. The company previously had positive free cash flow growth, but this has deteriorated significantly. The lack of cash flow metrics for 2024 suggests potential liquidity concerns.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue19.00B17.72B20.20B20.64B20.54B19.82B
Gross Profit2.56B2.44B2.87B2.94B3.76B3.36B
EBITDA167.86M114.45M-843.71M668.63M1.71B1.72B
Net Income-271.02M-270.22M-2.02B360.92M711.59M612.97M
Balance Sheet
Total Assets25.39B23.74B25.10B24.77B29.60B28.02B
Cash, Cash Equivalents and Short-Term Investments2.39B3.54B3.20B3.26B4.61B4.20B
Total Debt5.50B3.81B3.40B3.74B4.24B4.51B
Total Liabilities15.13B13.62B13.67B12.46B14.73B14.26B
Stockholders Equity6.32B5.83B6.93B8.36B10.16B9.43B
Cash Flow
Free Cash Flow341.72M375.80M587.13M432.03M393.71M1.02B
Operating Cash Flow375.14M405.53M746.14M525.56M540.70M1.15B
Investing Cash Flow79.10M-223.02M334.18M-47.88M20.37M1.51B
Financing Cash Flow652.89M-60.38M-678.68M-249.29M-926.23M-1.54B

Digital China Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.03
Price Trends
50DMA
3.13
Negative
100DMA
3.09
Negative
200DMA
3.02
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
41.08
Neutral
STOCH
27.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0861, the sentiment is Negative. The current price of 3.03 is below the 20-day moving average (MA) of 3.20, below the 50-day MA of 3.13, and above the 200-day MA of 3.02, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.08 is Neutral, neither overbought nor oversold. The STOCH value of 27.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0861.

Digital China Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
HK$405.27M13.765.83%6.59%-1.26%-10.80%
65
Neutral
HK$775.94M4.246.75%6.49%7.39%2.23%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
58
Neutral
HK$444.00M49.174.04%6.76%20.83%-75.45%
57
Neutral
$16.79B26.524.70%0.86%5.43%-6.88%
48
Neutral
HK$1.96B708.574.78%-25.92%
46
Neutral
$4.72B-4.20%2.31%-6.07%86.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0861
Digital China Holdings
3.03
0.13
4.41%
HK:0354
Chinasoft International
6.02
-0.35
-5.54%
HK:1522
BII Railway Transportation Technology Holdings Co., Ltd.
0.37
0.08
27.59%
HK:1985
Microware Group Ltd.
1.50
0.32
27.12%
HK:3680
Suoxinda Holdings Limited
2.48
1.52
158.33%
HK:0046
Computer & Technologies Holdings Ltd.
1.68
-0.14
-7.69%

Digital China Holdings Corporate Events

Digital China Reports Q1 2025 Financial Results and Advances FinTech Strategy
Apr 25, 2025

Digital China Information Service Group Company Ltd. reported a net loss of RMB 92.94 million for the first quarter of 2025, despite achieving operating revenues of RMB 2.160 billion. The company continues to advance its FinTech strategy, securing significant contracts in financial software services and expanding its presence in the finance sector. Key projects include the development of core banking systems and treasury solutions for various banks, as well as advancements in artificial intelligence applications for financial processes. These efforts aim to enhance operational efficiency and expand market reach, positioning the company as a leader in digital financial solutions.

Digital China Holdings Announces Annual General Meeting Agenda
Apr 25, 2025

Digital China Holdings Limited has announced its upcoming annual general meeting, scheduled for June 27, 2025, at the Conrad Hong Kong. Key agenda items include the adoption of the company’s financial statements for the year ending December 31, 2024, the declaration of a final dividend, re-election of several directors, and the re-appointment of SHINEWING (HK) CPA Limited as auditors. Additionally, the meeting will consider resolutions related to the issuance and management of company shares, which could impact the company’s capital structure and shareholder value.

Digital China Holdings Releases 2024 Annual Results
Apr 2, 2025

Digital China Holdings Limited announced the release of its annual results for the year ended December 31, 2024, during an investor conference held via teleconference on April 2, 2025. The results presentation, which is available on the company’s website, reflects the company’s ongoing commitment to transparency and communication with stakeholders, potentially impacting its market positioning and investor relations positively.

Digital China Holdings Reports 2024 Financial Results with Reduced Losses
Mar 28, 2025

Digital China Holdings Limited announced its annual financial results for the year ended December 31, 2024, reporting a revenue decline of 8.86% compared to the previous year. Despite the overall revenue drop, the company saw growth in its big data and software segments, and significantly reduced its losses attributable to equity holders by 86.15%. The board has recommended a final dividend of HK6.0 cents per share, reflecting a total dividend of HK7.0 cents per share for the year.

Digital China Holdings Declares Final Dividend for 2024
Mar 28, 2025

Digital China Holdings Limited has announced a final cash dividend of HKD 0.06 per share for the financial year ending December 31, 2024. This announcement, dated March 28, 2025, signifies the company’s stable financial performance and commitment to delivering shareholder value. The dividend will be paid on July 16, 2025, following shareholder approval on June 27, 2025, and the ex-dividend date is set for July 3, 2025. This move is likely to reinforce investor confidence and bolster the company’s standing in the market.

Digital China Holdings Projects Reduced Losses for 2024
Mar 20, 2025

Digital China Holdings Limited announced a significant reduction in its expected loss for the year ending December 31, 2024, projecting a loss between RMB 240 million and RMB 300 million, compared to a loss of approximately RMB 1,834 million in the previous year. This improvement is attributed to a decrease in share of losses from associates and joint ventures, as well as a reduction in impairment losses on wealth management products and investment properties. The announcement highlights the ongoing challenges faced by the company, including losses from its subsidiary, Digital China Information Service Company Ltd., which is expected to report a loss for the year. The final financial results are still being prepared and will be disclosed in the company’s annual results announcement at the end of March 2025.

Digital China Holdings Schedules Board Meeting to Approve Annual Results
Mar 18, 2025

Digital China Holdings Limited has announced that its board of directors will meet on March 28, 2025, to review and approve the audited annual results for the year ending December 31, 2024. The meeting will also consider recommending a final dividend, reflecting the company’s ongoing commitment to shareholder returns.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 07, 2025