Digital China Holdings Limited (HK:0861)
:0861
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Digital China Holdings
(0861)
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Rating:55Neutral
Price Target:
HK$3.00
▲(14.07% Upside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by improving financial performance (revenue rebound, return to profit, and consistently positive free cash flow) but held back by weak earnings quality (very thin margins and declining gross margin) and an expensive valuation (high P/E). Technicals add modest support with a constructive trend versus key moving averages, though longer-term trend strength is not yet confirmed.
Positive Factors
Revenue rebound & profitability
A sustained revenue rebound and return to net profit in 2025 indicate recovery in core demand and improved operating leverage potential. Over 2–6 months this supports cash generation, reduces solvency risk and gives management room to reinvest in services and platforms to regain growth momentum.
Negative Factors
Very thin margins
Margins at almost break-even leave little buffer against cost inflation, pricing pressure or contract renewals. Persistently low operating and net margins constrain internal reinvestment, make earnings fragile and reduce the firm’s ability to build durable profitability even if revenues stabilize.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound & profitability
A sustained revenue rebound and return to net profit in 2025 indicate recovery in core demand and improved operating leverage potential. Over 2–6 months this supports cash generation, reduces solvency risk and gives management room to reinvest in services and platforms to regain growth momentum.
Read all positive factors
Digital China Holdings (0861) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$3.94B
Dividend Yield2.65%
Average Volume (3M)9.02M
Price to Earnings (P/E)112.8
Beta (1Y)0.34
Revenue Growth26.48%
EPS GrowthN/A
CountryHK
Employees19,268
SectorIndustrials
Sector Strength72
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.03
Shares Outstanding1,673,607,400
10 Day Avg. Volume6,291,478
30 Day Avg. Volume9,022,346
Financial Highlights & Ratios
PEG Ratio-1.00
Price to Book (P/B)0.62
Price to Sales (P/S)0.17
P/FCF Ratio9.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$2.95Price Target Upside12.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.07
Revenue Forecast (FY)HK$22.66B
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
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Digital China Holdings Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.39B | 17.72B | 20.20B | 20.64B | 20.54B |
| Gross Profit | 2.80B | 2.44B | 2.87B | 2.94B | 3.76B |
| EBITDA | 461.51M | 114.45M | -843.71M | 668.63M | 1.71B |
| Net Income | 34.97M | -270.22M | -2.02B | 360.92M | 711.59M |
Balance Sheet | |||||
| Total Assets | 24.14B | 23.74B | 25.10B | 24.77B | 29.60B |
| Cash, Cash Equivalents and Short-Term Investments | 4.57B | 3.54B | 3.20B | 3.26B | 4.61B |
| Total Debt | 3.91B | 3.81B | 3.40B | 3.74B | 4.24B |
| Total Liabilities | 13.60B | 13.62B | 13.67B | 12.46B | 14.73B |
| Stockholders Equity | 6.41B | 5.83B | 6.93B | 8.36B | 10.16B |
Cash Flow | |||||
| Free Cash Flow | 430.76M | 375.80M | 587.13M | 432.03M | 393.71M |
| Operating Cash Flow | 544.77M | 405.53M | 746.14M | 525.56M | 540.70M |
| Investing Cash Flow | 144.93M | -223.02M | 334.18M | -47.88M | 20.37M |
| Financing Cash Flow | -304.76M | -60.38M | -678.68M | -249.29M | -926.23M |
Digital China Holdings Technical Analysis
Positive
2.63
Price Trends
2.28
Positive
2.48
Positive
2.74
Negative
Market Momentum
0.12
Negative
57.45
Neutral
83.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0861, the sentiment is Positive. The current price of 2.63 is above the 20-day moving average (MA) of 2.31, above the 50-day MA of 2.28, and below the 200-day MA of 2.74, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 57.45 is Neutral, neither overbought nor oversold. The STOCH value of 83.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$602.00M | 13.60 | 50.83% | 12.99% | -4.82% | -4.32% | |
64 Neutral | HK$773.79M | 6.56 | 1.74% | 2.52% | 13.62% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | HK$3.94B | 112.85 | -4.20% | 2.65% | 26.48% | ― | |
54 Neutral | HK$65.31B | 6.88 | 3.68% | ― | 2.94% | ― | |
48 Neutral | HK$1.59B | 146.53 | 2.55% | ― | 33.54% | -4.91% | |
44 Neutral | HK$8.87B | 36.53 | 2.73% | 1.06% | 0.47% | -36.22% |
* Industrials Sector Average
HK:0861
Digital China Holdings
2.36
-0.20
-7.78%
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3.28
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39.56
11.56
41.29%
HK:2176
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0.86
-0.52
-37.64%
HK:1075
Capinfo Co., Ltd. Class H
2.67
0.49
22.48%
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Cloud Factory Technology Holdings Limited
3.14
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77.40%
Digital China Holdings Corporate Events
Digital China Sets Virtual AGM to Approve Dividend, Board Mandates
May 11, 2026
Digital China Holdings has convened its annual general meeting for 26 June 2026, to be held virtually via an online voting platform, where shareholders will review the audited consolidated financial statements for the year ended 31 December 2025 a...
Digital China Declares Final Cash Dividend for 2025
May 11, 2026
Digital China Holdings Limited has announced a final ordinary cash dividend of HKD 0.036 per share for the financial year ended 31 December 2025, payable in Hong Kong dollars. The move underscores the company’s intention to return value to s...
Digital China FinTech Arm Books Q1 Loss but Secures New Banking Contracts
Apr 27, 2026
Digital China Information Service Group reported unaudited first-quarter 2026 revenue of RMB 1.77 billion, down from RMB 2.16 billion a year earlier, with a net loss attributable to shareholders of RMB 92.47 million, broadly flat year-on-year. Des...
Digital China Faces Deemed Disposal as DCITS Plans RMB1 Billion Private Placement
Apr 27, 2026
Digital China Holdings has announced that its Shenzhen-listed affiliate DCITS plans to raise up to RMB1 billion via a non-public share placement to no more than 35 targeted investors, including domestic and qualified foreign institutions. The new ...
Digital China Reclassifies Dealings With Major Shareholder as Connected Transactions
Apr 16, 2026
Digital China Holdings has reclassified a series of existing commercial dealings as continuing connected transactions after Digital China Group (DCG) increased its shareholding above 10% on April 16, 2026, making DCG a substantial shareholder and ...
Digital China Holds Teleconference to Present Annual Results to Investors
Apr 1, 2026
Digital China Holdings has announced that it held an investor teleconference on 1 April 2026 to report its annual results, in line with disclosure requirements of the Taiwan Stock Exchange. The company will make the presentation materials from the...
Digital China Returns to Profit on Double-Digit Revenue Growth in 2025
Mar 30, 2026
Digital China Holdings reported a strong rebound for 2025, with revenue climbing 26.16% year-on-year to RMB21.0 billion, driven by solid growth across data intelligence, integrated supply chain and especially fintech services. The group swung from...
Digital China Proposes HKD 0.036 Final Dividend for 2025 Financial Year
Mar 30, 2026
Digital China Holdings has proposed a final ordinary cash dividend of HKD 0.036 per share for the financial year ended 31 December 2025, underscoring its intention to return value to shareholders following the latest reporting period. Key dates, i...
Digital China Sells 1.31% Stake in Subsidiary, Retains Control of DCITS
Mar 30, 2026
Digital China Holdings has completed a planned disposal period in which its indirect wholly owned subsidiary, Digital China Software Co., Ltd., sold a total of 12,764,026 shares in Digital China Information Service Group Company Ltd., equal to abo...
Digital China Flags Return to Profit on Revenue Growth and Lower Impairments
Mar 24, 2026
Digital China Holdings has signalled a sharp turnaround in its financial performance, forecasting that profit attributable to equity holders will swing from a loss of about RMB254 million in 2024 to a profit of between RMB20 million and RMB40 mill...
Digital China Sets March Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 18, 2026
Digital China Holdings has scheduled a board meeting for 30 March 2026 to review and approve the audited annual results for the financial year ended 31 December 2025. The board will also consider recommending a final dividend for shareholders, sig...
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.