Digital China Holdings Limited (HK:0861)
:0861
Want to see HK:0861 full AI Analyst Report?
Top Page
Digital China Holdings
(0861)
Select Model
Select Model
Rating:52Neutral
Price Target:
HK$2.00
▼(-23.95% Downside)
Action:ReiteratedDate:04/27/26
The score is driven primarily by improving financial performance (revenue rebound, return to profitability, and positive free cash flow), but capped by very thin margins and prior earnings volatility. Technical indicators are bearish to neutral (below major moving averages with negative MACD), and valuation is constrained by a high P/E despite a supportive dividend yield.
Positive Factors
Revenue rebound & profitability
A robust revenue rebound and a return to positive net income indicate renewed demand and improved operational execution. This reduces restructuring risk, helps stabilize cash generation, and provides a foundation for gradual margin recovery and reinvestment over the medium term.
Negative Factors
Very thin profit margins
Extremely low net and operating margins severely constrain the firm's ability to self-fund growth, absorb cost shocks, or generate meaningful returns. Declining gross margin signals weakening pricing power or adverse mix, undermining durable profitability unless structural fixes occur.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound & profitability
A robust revenue rebound and a return to positive net income indicate renewed demand and improved operational execution. This reduces restructuring risk, helps stabilize cash generation, and provides a foundation for gradual margin recovery and reinvestment over the medium term.
Read all positive factors
Digital China Holdings (0861) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$3.27B
Dividend Yield2.65%
Average Volume (3M)9.02M
Price to Earnings (P/E)115.1
Beta (1Y)0.38
Revenue Growth26.48%
EPS GrowthN/A
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 Ratio-1.02
Price to Book (P/B)0.61
Price to Sales (P/S)0.17
P/FCF Ratio10.13
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$23.96B
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 Holdings primarily makes money by selling enterprise IT products and delivering IT services and solutions to organizations in China.
Key revenue streams typically include:
1) Enterprise IT product distribution and resale: The compan...
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 | 22.79B | 17.72B | 20.20B | 20.64B | 20.54B |
| Gross Profit | 2.59B | 2.44B | 2.87B | 2.94B | 3.76B |
| EBITDA | 558.31M | 114.45M | -843.71M | 668.63M | 1.71B |
| Net Income | 34.08M | -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 | 387.20M | 375.80M | 587.13M | 432.03M | 393.71M |
| Operating Cash Flow | 489.68M | 405.53M | 746.14M | 525.56M | 540.70M |
| Investing Cash Flow | 130.28M | -223.02M | 334.18M | -47.88M | 20.37M |
| Financing Cash Flow | -273.94M | -60.38M | -678.68M | -249.29M | -926.23M |
Digital China Holdings Technical Analysis
Negative
2.63
Price Trends
2.42
Negative
2.57
Negative
2.83
Negative
Market Momentum
-0.11
Negative
42.54
Neutral
63.64
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 2.63 is above the 20-day moving average (MA) of 2.17, above the 50-day MA of 2.42, and below the 200-day MA of 2.83, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 42.54 is Neutral, neither overbought nor oversold. The STOCH value of 63.64 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | HK$651.00M | 13.97 | 60.23% | 12.99% | -4.82% | -4.32% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | HK$68.48B | 49.75 | 3.70% | ― | 2.94% | ― | |
52 Neutral | HK$3.27B | 115.07 | -4.20% | 2.65% | 26.48% | ― | |
51 Neutral | HK$799.87M | 6.78 | 1.74% | 2.52% | 13.13% | ― | |
46 Neutral | HK$1.65B | 150.42 | 2.56% | ― | 33.54% | -4.91% | |
44 Neutral | HK$9.43B | 35.68 | 2.73% | 1.06% | 0.47% | -36.22% |
* Industrials Sector Average
HK:0861
Digital China Holdings
1.96
-0.46
-19.08%
HK:0354
Chinasoft International
3.49
-1.41
-28.75%
HK:9698
GDS Holdings Ltd.
41.48
16.18
63.95%
HK:2176
CCID Consulting Co. Ltd. Class H
0.93
-0.42
-31.21%
HK:1075
Capinfo Co., Ltd. Class H
2.76
0.75
37.52%
HK:2512
Cloud Factory Technology Holdings Limited
3.26
1.26
63.00%
Digital China Holdings Corporate Events
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...
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...
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.