Digital China Holdings Limited (HK:0861)
:0861
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Digital China Holdings
(0861)
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Rating:48Neutral
Price Target:
HK$3.00
▲(14.07% Upside)
Action:ReiteratedDate:02/03/26
The score is held down primarily by weak financial performance—losses, declining revenue, compressed margins, and especially the absence of operating/free cash flow in 2024. Technical indicators are moderately supportive in the near term, and the dividend offers limited valuation support, but neither is strong enough to outweigh the fundamental and cash-flow risk.
Positive Factors
Diverse enterprise IT services and distribution
Digital China’s integrated model—distribution, systems integration, cloud and managed services—creates multiple complementary revenue streams. Over the medium term this diversification supports resilience, enabling recurring managed-service revenue and cross-sell opportunities that stabilize cashflows and client relationships.
Negative Factors
No operating or free cash flow in 2024
The lack of operating and free cash flow is a material structural weakness: without internal cash generation the company faces ongoing liquidity risk, limited ability to self-fund capex or working capital, and greater reliance on external financing, which can constrain strategic execution and long-term growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Diverse enterprise IT services and distribution
Digital China’s integrated model—distribution, systems integration, cloud and managed services—creates multiple complementary revenue streams. Over the medium term this diversification supports resilience, enabling recurring managed-service revenue and cross-sell opportunities that stabilize cashflows and client relationships.
Read all positive factors
Digital China Holdings (0861) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$3.15B
Dividend Yield2.65%
Average Volume (3M)9.02M
Price to Earnings (P/E)141.4
Beta (1Y)0.26
Revenue Growth-6.07%
EPS Growth86.55%
CountryHK
Employees19,268
SectorIndustrials
Sector Strength72
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.01
Shares Outstanding1,673,607,400
10 Day Avg. Volume6,291,478
30 Day Avg. Volume9,022,346
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)0.84
Price to Sales (P/S)0.27
P/FCF Ratio12.97
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)0.2
Revenue Forecast (FY)HK$20.69B
Digital China Holdings Business Overview & Revenue Model
Company Description
Digital China Holdings Limited, an investment holding company, provides big data products and solutions for government and enterprise customers primarily in Mainland China. The Big Data Products and Solutions segment sells data software products f...
How the Company Makes Money
Digital 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 (Ia...
Digital China Holdings Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.00B | 17.72B | 20.20B | 20.64B | 20.54B | 19.82B |
| Gross Profit | 2.56B | 2.44B | 2.87B | 2.94B | 3.76B | 3.36B |
| EBITDA | 167.86M | 114.45M | -843.71M | 668.63M | 1.71B | 1.72B |
| Net Income | -271.02M | -270.22M | -2.02B | 360.92M | 711.59M | 612.97M |
Balance Sheet | ||||||
| Total Assets | 25.39B | 23.74B | 25.10B | 24.77B | 29.60B | 28.02B |
| Cash, Cash Equivalents and Short-Term Investments | 2.39B | 3.54B | 3.20B | 3.26B | 4.61B | 4.20B |
| Total Debt | 5.50B | 3.81B | 3.40B | 3.74B | 4.24B | 4.51B |
| Total Liabilities | 15.13B | 13.62B | 13.67B | 12.46B | 14.73B | 14.26B |
| Stockholders Equity | 6.32B | 5.83B | 6.93B | 8.36B | 10.16B | 9.43B |
Cash Flow | ||||||
| Free Cash Flow | 341.72M | 375.80M | 587.13M | 432.03M | 393.71M | 1.02B |
| Operating Cash Flow | 375.14M | 405.53M | 746.14M | 525.56M | 540.70M | 1.15B |
| Investing Cash Flow | 79.10M | -223.02M | 334.18M | -47.88M | 20.37M | 1.51B |
| Financing Cash Flow | 652.89M | -60.38M | -678.68M | -249.29M | -926.23M | -1.54B |
Digital China Holdings Technical Analysis
Negative
2.63
Price Trends
2.54
Negative
2.65
Negative
2.87
Negative
Market Momentum
-0.14
Positive
31.44
Neutral
11.35
Positive
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 2.63 is above the 20-day moving average (MA) of 2.35, above the 50-day MA of 2.54, and below the 200-day MA of 2.87, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 31.44 is Neutral, neither overbought nor oversold. The STOCH value of 11.35 is Positive, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$728.00M | 9.99 | 38.98% | 12.99% | 2.82% | 10.06% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | HK$65.25B | 49.75 | 3.70% | ― | 1.73% | ― | |
51 Neutral | HK$843.34M | 14.63 | 1.74% | 2.52% | 8.90% | ― | |
48 Neutral | HK$3.15B | 141.36 | -4.20% | 2.65% | -6.07% | 86.55% | |
46 Neutral | HK$1.64B | 150.42 | 2.56% | ― | ― | ― | |
44 Neutral | HK$9.38B | 35.68 | 2.73% | 1.06% | 5.43% | -6.88% |
* Industrials Sector Average
HK:0861
Digital China Holdings
2.08
-0.23
-10.11%
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Chinasoft International
3.47
-0.74
-17.67%
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GDS Holdings Ltd.
39.52
19.98
102.25%
HK:2176
CCID Consulting Co. Ltd. Class H
1.04
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-13.69%
HK:1075
Capinfo Co., Ltd. Class H
2.91
0.95
48.62%
HK:2512
Cloud Factory Technology Holdings Limited
3.25
1.26
63.32%
Digital China Holdings Corporate Events
Digital China Clarifies Independence of Counterparties in DCITS Share Disposal
Jan 30, 2026
Digital China Holdings has issued a supplemental announcement clarifying details of a previously disclosed disposal by its indirect wholly owned subsidiary, Digital China Software Co., Ltd., of 11,895,200 shares in DCITS, representing about 1.22% ...
Digital China Subsidiary DCITS Forecasts 2025 Return to Profit on Fintech Push
Jan 30, 2026
Digital China Holdings announced that its indirect non-wholly owned subsidiary DCITS expects to swing to a profit attributable to shareholders of between RMB46 million and RMB69 million for 2025, compared with a loss of about RMB524 million in 202...
Digital China Faces Shareholder Push to Tighten Approval Rules for Major Deals
Jan 23, 2026
Digital China Holdings has received a requisition from Guangzhou City Investment Jiazi Investment Partnership, which holds about 17.57% of its issued share capital via HKSCC Nominees, demanding that the company convene a special general meeting to...
Digital China to Lift Stake in Shenqi Digital to 94.5% via RMB391.6 Million Put-Option Buyback
Jan 16, 2026
Digital China Holdings has announced that its indirect wholly owned subsidiary DC Software has agreed to repurchase a 4.65% equity stake in Shenqi Digital from investor Changchun Jingyue for approximately RMB391.61 million, under a put option arra...
Digital China Boosts Stake in Shenqi Digital After Investor Exercises Put Option
Jan 14, 2026
Digital China Holdings has announced that its indirect wholly owned subsidiary DC Software will acquire approximately 6.20% of Shenqi Digital Company Limited from investor Changchun Financial for about RMB522.4 million, following Changchun Financi...
Digital China Realises RMB203 Million by Trimming Stake in DCITS While Retaining Control
Jan 11, 2026
Digital China Holdings has sold 11,895,200 shares in its subsidiary DCITS via its indirect wholly owned unit DC Software between 31 December 2025 and 9 January 2026, representing about 1.22% of DCITS’ share capital, through a mix of centrali...
Digital China Holdings Plans Partial Share Disposal in Subsidiary
Dec 9, 2025
Digital China Holdings Limited announced a proposed disposal of up to 28,827,300 shares in its subsidiary, Digital China Information Service Group Company Ltd. (DCITS), by its controlling shareholder, Digital China Software Co., Ltd. This disposal...
Digital China Holdings Announces Board Composition and Committee Roles
Nov 28, 2025
Digital China Holdings Limited has announced the composition of its board of directors, detailing the roles and functions of its executive, non-executive, and independent non-executive directors. The announcement also outlines the membership of th...
Digital China Holdings Enhances Governance with New Nomination Committee
Nov 28, 2025
Digital China Holdings Limited has established a Nomination Committee as part of its Board of Directors to ensure a structured and diverse approach to board nominations. This move is expected to enhance the company’s governance and strategic...
Digital China Holdings Appoints New Executive Director
Nov 28, 2025
Digital China Holdings Limited has announced the appointment of Mr. CAI Yinghua as an executive director, effective from November 28, 2025. Mr. CAI, who has been serving as the president and chief operating officer since September 2024, brings ext...
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.