Why is Digital China Group Co., Ltd. ?
1
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 10.02% and Operating profit at 6.90% 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
2
Poor long term growth as Net Sales has grown by an annual rate of 10.02% and Operating profit at 6.90% over the last 5 years
3
Negative results in Mar 25
- INTEREST(9M) At CNY 521.8 MM has Grown at 9.12%
- ROCE(HY) Lowest at 7.55%
- RAW MATERIAL COST(Y) Grown by 21.39% (YoY)
4
With ROE of 9.73%, it has a expensive valuation with a 2.21 Price to Book Value
- Over the past year, while the stock has generated a return of 24.48%, its profits have fallen by -17.8%
- At the current price, the company has a high dividend yield of 0.7
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, High Return
Absolute
Risk Adjusted
Volatility
Digital China Group Co., Ltd.
15.61%
1.20
48.44%
China Shanghai Composite
15.19%
1.01
15.10%
Quality key factors
Factor
Value
Sales Growth (5y)
10.02%
EBIT Growth (5y)
6.90%
EBIT to Interest (avg)
3.36
Debt to EBITDA (avg)
8.21
Net Debt to Equity (avg)
1.27
Sales to Capital Employed (avg)
3.98
Tax Ratio
17.24%
Dividend Payout Ratio
22.91%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
7.60%
ROE (avg)
11.84%
Valuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
2.21
EV to EBIT
23.21
EV to EBITDA
21.23
EV to Capital Employed
1.47
EV to Sales
0.30
PEG Ratio
NA
Dividend Yield
0.75%
ROCE (Latest)
6.34%
ROE (Latest)
9.73%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Movement
6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 5,774.99 MM
INTEREST COVERAGE RATIO(Q)
Highest at 338.94
CASH AND EQV(HY)
Highest at CNY 12,979.28 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 127.17 %
-10What is not working for the Company
INTEREST(9M)
At CNY 521.8 MM has Grown at 9.12%
ROCE(HY)
Lowest at 7.55%
RAW MATERIAL COST(Y)
Grown by 21.39% (YoY
NET PROFIT(Q)
Lowest at CNY 201.93 MM
Here's what is working for Digital China Group Co., Ltd.
Interest Coverage Ratio
Highest at 338.94
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow
Highest at CNY 5,774.99 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Cash and Eqv
Highest at CNY 12,979.28 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 127.17 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Digital China Group Co., Ltd.
Interest
At CNY 521.8 MM has Grown at 9.12%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Profit
Lowest at CNY 201.93 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
Raw Material Cost
Grown by 21.39% (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






