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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

(0861)

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Neutral 53 (OpenAI - Gpt-5.6Sol)
Rating:53Neutral
Price Target:
HK$2.00
▲(11.11% Upside)
Action:Reiterated
Date:09/11/26
The score is primarily driven by improving financial performance (revenue rebound, return to profitability, and consistently positive free cash flow), tempered by very thin margins, compressed gross margin, and low returns on equity. Technicals add a modest drag due to longer-term downtrend signals (below 100D/200D and negative MACD), while valuation is neutral given an uninformative negative P/E and only a modest dividend yield.
Positive Factors
Revenue rebound
A 20% revenue rebound indicates recovering end-market demand and renewed commercial traction, creating a larger base to absorb fixed costs and fund scale initiatives. Sustained top-line recovery over several quarters would support durable improvement in operating leverage and strategic reinvestment.
Negative Factors
Very thin profitability
Extremely low operating and net margins leave the business highly exposed to cost inflation, pricing pressure, or modest revenue declines. Such narrow profitability constrains retained earnings, limits reinvestment capacity, and makes long-term return generation fragile absent sustained margin recovery or higher-margin revenue mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound
A 20% revenue rebound indicates recovering end-market demand and renewed commercial traction, creating a larger base to absorb fixed costs and fund scale initiatives. Sustained top-line recovery over several quarters would support durable improvement in operating leverage and strategic reinvestment.
Read all positive factors

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

Digital China Holdings Business Overview & Revenue Model

Company Description
Digital China Holdings Ltd. is an investment company, which engages in the provision of information technology services. It operates through the following segments: Big Data Products and Solutions, Software and Operating Services, and Traditional ...
How the Company Makes Money
Digital China primarily makes money by delivering IT and digital transformation solutions to enterprise and institutional customers. Key revenue streams include: (1) Project-based technology services such as systems integration, implementation, an...

Digital China Holdings Financial Statement Overview

Summary
Financials are improving but still quality-constrained. Revenue rebounded strongly in 2025 (+20% YoY) and net income turned positive after 2023–2024 losses, supported by consistently positive free cash flow (2025 FCF +13.3% YoY). Offsetting this, profitability remains very thin (net margin ~0.15%, operating margin ~1.35%), gross margin has compressed materially (~18.3% in 2021 to ~11.4% in 2025), and returns on equity are very low (~0.5%), indicating limited earnings durability.
Income Statement
44
Neutral
Balance Sheet
58
Neutral
Cash Flow
63
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue25.85B23.39B17.72B20.20B20.09B20.54B
Gross Profit3.27B2.80B2.44B2.87B3.33B3.71B
EBITDA772.83M461.51M114.45M-843.71M932.24M1.71B
Net Income-62.47M34.97M-270.22M-2.02B360.92M711.59M
Balance Sheet
Total Assets24.29B24.14B23.74B25.10B24.77B29.60B
Cash, Cash Equivalents and Short-Term Investments2.88B4.57B3.54B3.20B3.26B3.85B
Total Debt4.69B3.91B3.81B3.74B3.74B4.24B
Total Liabilities13.46B13.60B13.62B13.67B12.46B14.73B
Stockholders Equity6.76B6.41B6.21B6.93B8.36B10.16B
Cash Flow
Free Cash Flow5.50B430.76M375.80M587.13M432.03M393.71M
Operating Cash Flow5.56B544.77M405.53M929.89M525.56M540.70M
Investing Cash Flow-19.79M144.93M-223.02M334.18M-47.88M294.69M
Financing Cash Flow-2.63B-304.76M-60.38M-678.68M-249.29M-1.11B

Digital China Holdings Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.80
Price Trends
50DMA
1.82
Negative
100DMA
1.99
Negative
200DMA
2.26
Negative
Market Momentum
MACD
-0.03
Negative
RSI
50.09
Neutral
STOCH
79.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0861, the sentiment is Neutral. The current price of 1.8 is above the 20-day moving average (MA) of 1.78, below the 50-day MA of 1.82, and below the 200-day MA of 2.26, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 50.09 is Neutral, neither overbought nor oversold. The STOCH value of 79.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
66
Neutral
HK$329.00M8.0135.60%21.91%-21.68%-55.57%
64
Neutral
HK$507.17M5.426.36%4.64%8.20%286.36%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
HK$49.98B11.5312.75%12.61%2372.26%
53
Neutral
HK$2.98B-40.31-0.96%1.86%16.16%83.77%
48
Neutral
HK$1.40B50.884.47%74.82%57.99%
45
Neutral
HK$10.37B22.742.97%1.23%3.18%-31.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0861
Digital China Holdings
1.94
-1.24
-39.11%
HK:0354
Chinasoft International
3.78
-2.21
-36.84%
HK:9698
GDS Holdings Ltd.
31.52
-2.04
-6.08%
HK:2176
CCID Consulting Co. Ltd. Class H
0.47
-1.26
-72.75%
HK:1075
Capinfo Co., Ltd. Class H
1.71
-1.02
-37.29%
HK:2512
Cloud Factory Technology Holdings Limited
2.77
-1.00
-26.53%

Digital China Holdings Corporate Events

Digital China to Host Taiwan Investor Call and Release Bilingual Materials
Aug 31, 2026
Digital China Holdings has announced that it will hold an investor conference on 1 September 2026 at 09:30 Taiwan time via telephone, targeting its Taiwan depository receipt investors and broader market participants. The company will present DC Ho...
Digital China Swings to Interim Loss as Data Intelligence Revenue Slumps
Aug 28, 2026
Digital China Holdings reported interim results for the six months ended 30 June 2026 showing a 15.57% year-on-year decline in revenue to RMB6.64 billion, driven largely by a 51.78% drop in its data intelligence services segment, while integrated ...
Digital China Sets August Board Meeting to Review Interim Results and Dividend
Aug 18, 2026
Digital China Holdings Limited, a Hong Kong-listed provider of digital services and technology solutions, operates through a network of subsidiaries and is governed by a nine-member board that includes executive, non-executive and independent dire...
Digital China Issues Profit Warning as Legal Provisions Drive Interim Loss
Jul 30, 2026
Digital China Holdings Limited, a Hong Kong-listed technology and information services group with significant exposure to mainland China’s enterprise and public sector IT markets, operates through key subsidiaries such as Shenzhen-listed DCI...
Digital China flags wider interim loss at key subsidiary after legal provision
Jul 14, 2026
Digital China Holdings Limited, a Hong Kong‑listed technology and information services group, derives a significant part of its business from its indirect 38.61% stake in Shenzhen‑listed subsidiary Digital China Information Service Gro...
Digital China Flags Mixed Court Rulings as Legal Risks Mount
Jun 28, 2026
Digital China Holdings has disclosed that its Shenzhen-listed subsidiary DCITS and unit Digital China System Integration Services won a first-instance ruling in Henan, where Xuchang Yunzheng and Xuchang City Investment were ordered to pay about RM...
Digital China Sets Out Board Line-Up and Committee Roles
Jun 26, 2026
Digital China Holdings has announced the current composition of its board, led by chairman and chief executive officer Guo Wei, alongside vice chairman Lin Yang and president and chief operating officer Cai Yinghua, supported by one non-executive ...
Digital China shareholders reject proposed bye-laws overhaul at special meeting
Jun 26, 2026
Digital China Holdings disclosed that shareholders at a special general meeting on 26 June 2026 rejected a proposed overhaul of the company’s bye-laws, with only about 42% of votes cast in favour and approximately 58% against, falling short ...
Digital China Investors Back Dividend and Board Slate as Non-Executive Director Voted Out
Jun 26, 2026
Digital China Holdings reported the poll results of its 26 June 2026 annual general meeting, where shareholders approved the audited financial statements for the year ended 31 December 2025 and backed a final dividend of HK3.6 cents per share, und...
Digital China Wins Shareholder Backing for Subsidiary’s Private Share Placement
Jun 24, 2026
Digital China Holdings has secured shareholder approval at a special general meeting for a proposed private placement of shares by its subsidiary Digital China Information Service Group to up to 35 targeted investors, subject to regulatory registr...
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: Sep 11, 2026