Why is Digital China Information Service Group Co. Ltd. ?
1
Poor Management Efficiency with a low ROCE of 2.89%
- The company has been able to generate a Return on Capital Employed (avg) of 2.89% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 3.81% and Operating profit at -177.44% over the last 5 years
3
Flat results in Mar 26
- INTEREST(9M) At CNY 37.96 MM has Grown at 13.7%
- NET SALES(Q) Lowest at CNY 1,765.06 MM
- OPERATING PROFIT(Q) Lowest at CNY -188.17 MM
4
With ROE of 0.22%, it has a expensive valuation with a 1.97 Price to Book Value
- Over the past year, while the stock has generated a return of -23.24%, its profits have risen by 102.4% ; the PEG ratio of the company is 8.8
- At the current price, the company has a high dividend yield of 0.1
5
Below par performance in long term as well as near term
- Along with generating -23.24% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
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 Computers - Software & Consulting)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Digital China Information Service Group Co. Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Digital China Information Service Group Co. Ltd.
-18.75%
-0.20
52.46%
China Shanghai Composite
3.0%
1.20
14.07%
Quality key factors
Factor
Value
Sales Growth (5y)
3.81%
EBIT Growth (5y)
-177.44%
EBIT to Interest (avg)
1.63
Debt to EBITDA (avg)
2.35
Net Debt to Equity (avg)
0.43
Sales to Capital Employed (avg)
1.39
Tax Ratio
100.00%
Dividend Payout Ratio
17.04%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.12%
ROE (avg)
4.49%
Valuation Key Factors 
Factor
Value
P/E Ratio
829
Industry P/E
Price to Book Value
1.81
EV to EBIT
-209.08
EV to EBITDA
266.43
EV to Capital Employed
1.76
EV to Sales
0.83
PEG Ratio
8.10
Dividend Yield
0.10%
ROCE (Latest)
-0.84%
ROE (Latest)
0.22%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 1,254.35 MM
RAW MATERIAL COST(Y)
Fallen by -18.19% (YoY
NET PROFIT(9M)
Higher at CNY -120.46 MM
CASH AND EQV(HY)
Highest at CNY 3,603.53 MM
-13What is not working for the Company
PRE-TAX PROFIT(Q)
Lowest at CNY -272.29 MM
NET PROFIT(Q)
Lowest at CNY -189.87 MM
EPS(Q)
Lowest at CNY -0.2
Here's what is working for Digital China Information Service Group Co. Ltd.
Operating Cash Flow
Highest at CNY 1,254.35 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 3,603.53 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -18.19% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Digital China Information Service Group Co. Ltd.
Pre-Tax Profit
At CNY -272.29 MM has Fallen at -1,413.51%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY -189.87 MM has Fallen at -5,131.84%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Pre-Tax Profit
Lowest at CNY -272.29 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Net Profit
Lowest at CNY -189.87 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CNY MM)
EPS
Lowest at CNY -0.2
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CNY)
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