Digital China Holdings Ltd. (861) 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

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Why is Digital China Holdings Ltd. ?

High Management Efficiency with a high ROCE of 14.34%

Positive results in Dec 25

ROCE(HY) Highest at 0.54%
CASH AND EQV(HY) Highest at HKD 4,571.89 MM
DEBT-EQUITY RATIO (HY) Lowest at -10.35 %

With ROE of 8.56%, it has a Fair valuation with a 0.66 Price to Book Value

Over the past year, while the stock has generated a return of -1.95%, its profits have fallen by -38.4%

Below par performance in long term as well as near term

Along with generating -1.95% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Digital China Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Digital China Holdings Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Digital China Holdings Ltd.

-1.95%

7.44

47.90%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-10.39%

EBIT Growth (5y)

18.32%

EBIT to Interest (avg)

6.16

Debt to EBITDA (avg)

1.23

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

2.10

Tax Ratio

27.67%

Dividend Payout Ratio

156.52%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

14.34%

ROE (avg)

11.65%

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

0.66

EV to EBIT

5.35

EV to EBITDA

4.94

EV to Capital Employed

0.77

EV to Sales

0.29

PEG Ratio

Dividend Yield

0.04%

ROCE (Latest)

14.48%

ROE (Latest)

8.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

14What is working for the Company

ROCE(HY)

Highest at 0.54%

CASH AND EQV(HY)

Highest at HKD 4,571.89 MM

DEBT-EQUITY RATIO (HY)

Lowest at -10.35 %

INVENTORY TURNOVER RATIO(HY)

Highest at 11.91 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.92 times

NET SALES(Q)

Highest at HKD 14,395.65 MM

OPERATING PROFIT(Q)

Highest at HKD 445.11 MM

OPERATING PROFIT MARGIN(Q)

Highest at 3.09 %

PRE-TAX PROFIT(Q)

Highest at HKD 327.71 MM

-1What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 20.77% (YoY

Here's what is working for Digital China Holdings Ltd.

Pre-Tax Profit

At HKD 327.71 MM has Grown at 560.28%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

Net Sales

Highest at HKD 14,395.65 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Net Sales

At HKD 14,395.65 MM has Grown at 37.61%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Operating Profit

Highest at HKD 445.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Operating Profit Margin

Highest at 3.09 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at HKD 327.71 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Cash and Eqv

Highest at HKD 4,571.89 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -10.35 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 11.91 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.92 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 Holdings Ltd.

Raw Material Cost

Grown by 20.77% (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

Non Operating Income

Highest at HKD 0.36 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income