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Digital China Holdings
(0861)
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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)
Market Cap
HK$2.98B
Dividend Yield1.86%
Average Volume (3M)562.61K
Price to Earnings (P/E)―
Beta (1Y)0.46
Revenue Growth16.16%
EPS Growth83.77%
CountryHK
Employees21,936
SectorIndustrials
Sector Strength72
IndustryTechnology Distributors
Share Statistics
EPS (TTM)-0.05
Shares Outstanding1,673,607,400
10 Day Avg. Volume713,873
30 Day Avg. Volume562,612
Financial Highlights & Ratios
PEG Ratio-1.00
Price to Book (P/B)0.61
Price to Sales (P/S)0.17
P/FCF Ratio9.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.06
Revenue Forecast (FY)HK$22.17B
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
Income Statement
44
Neutral
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.85B | 23.39B | 17.72B | 20.20B | 20.09B | 20.54B |
| Gross Profit | 3.27B | 2.80B | 2.44B | 2.87B | 3.33B | 3.71B |
| EBITDA | 772.83M | 461.51M | 114.45M | -843.71M | 932.24M | 1.71B |
| Net Income | -62.47M | 34.97M | -270.22M | -2.02B | 360.92M | 711.59M |
Balance Sheet | ||||||
| Total Assets | 24.29B | 24.14B | 23.74B | 25.10B | 24.77B | 29.60B |
| Cash, Cash Equivalents and Short-Term Investments | 2.88B | 4.57B | 3.54B | 3.20B | 3.26B | 3.85B |
| Total Debt | 4.69B | 3.91B | 3.81B | 3.74B | 3.74B | 4.24B |
| Total Liabilities | 13.46B | 13.60B | 13.62B | 13.67B | 12.46B | 14.73B |
| Stockholders Equity | 6.76B | 6.41B | 6.21B | 6.93B | 8.36B | 10.16B |
Cash Flow | ||||||
| Free Cash Flow | 5.50B | 430.76M | 375.80M | 587.13M | 432.03M | 393.71M |
| Operating Cash Flow | 5.56B | 544.77M | 405.53M | 929.89M | 525.56M | 540.70M |
| Investing Cash Flow | -19.79M | 144.93M | -223.02M | 334.18M | -47.88M | 294.69M |
| Financing Cash Flow | -2.63B | -304.76M | -60.38M | -678.68M | -249.29M | -1.11B |
Digital China Holdings Technical Analysis
Neutral
1.80
Price Trends
1.82
Negative
1.99
Negative
2.26
Negative
Market Momentum
-0.03
Negative
50.09
Neutral
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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | HK$329.00M | 8.01 | 35.60% | 21.91% | -21.68% | -55.57% | |
64 Neutral | HK$507.17M | 5.42 | 6.36% | 4.64% | 8.20% | 286.36% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | HK$49.98B | 11.53 | 12.75% | ― | 12.61% | 2372.26% | |
53 Neutral | HK$2.98B | -40.31 | -0.96% | 1.86% | 16.16% | 83.77% | |
48 Neutral | HK$1.40B | 50.88 | 4.47% | ― | 74.82% | 57.99% | |
45 Neutral | HK$10.37B | 22.74 | 2.97% | 1.23% | 3.18% | -31.38% |
* Industrials Sector Average
HK:0861
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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.