Digital China Group Co., Ltd. (000034) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Digital China Group Co., Ltd.

Why is Digital China Group Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 9.68% and Operating profit at 3.50% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 11.84% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.68% and Operating profit at 3.50% over the last 5 years

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY -252.97 MM
ROCE(HY) Lowest at 5.2%
NET PROFIT(Q) At CNY 217.49 MM has Fallen at -43.14%

Below par performance in long term as well as near term

Along with generating -17.69% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Digital China Group Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Digital China Group Co., Ltd.

-17.69%

0.60

41.51%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.68%

EBIT Growth (5y)

3.50%

EBIT to Interest (avg)

3.36

Debt to EBITDA (avg)

8.21

Net Debt to Equity (avg)

1.27

Sales to Capital Employed (avg)

3.96

Tax Ratio

17.24%

Dividend Payout Ratio

22.91%

Pledged Shares

Institutional Holding

ROCE (avg)

7.60%

ROE (avg)

11.84%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.97

EV to EBIT

27.87

EV to EBITDA

25.50

EV to Capital Employed

1.77

EV to Sales

0.36

PEG Ratio

Dividend Yield

0.56%

ROCE (Latest)

6.34%

ROE (Latest)

9.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 12,120.81 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 10.75 times

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -252.97 MM

ROCE(HY)

Lowest at 5.2%

NET PROFIT(Q)

At CNY 217.49 MM has Fallen at -43.14%

RAW MATERIAL COST(Y)

Grown by 22.03% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.52 times

OPERATING PROFIT(Q)

Lowest at CNY 343.53 MM

PRE-TAX PROFIT(Q)

Fallen at -36.63%

Here's what is working for Digital China Group Co., Ltd.

Cash and Eqv

Highest at CNY 12,120.81 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 10.75 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Digital China Group Co., Ltd.

Net Profit

At CNY 217.49 MM has Fallen at -43.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -252.97 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 343.53 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Fallen at -36.63%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 8.52 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 22.03% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales