Digital China Information Service Group Co. Ltd. (000555) 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 Information Service Group Co. Ltd.

Why is Digital China Information Service Group Co. Ltd. ?

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)

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

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CNY 1,530.62 MM
NET PROFIT(HY) Higher at CNY 69.41 MM
RAW MATERIAL COST(Y) Fallen by -13.27% (YoY)

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 -15.14%, 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

Below par performance in long term as well as near term

Along with generating -15.14% 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 hold?

Overall Portfolio exposure to Digital China Information Service Group Co. Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

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

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

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.

-15.14%

0.00

52.35%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.81%

EBIT Growth (5y)

-177.44%

EBIT to Interest (avg)

2.70

Debt to EBITDA (avg)

0.18

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

1.39

Tax Ratio

2.75%

Dividend Payout Ratio

17.04%

Pledged Shares

Institutional Holding

ROCE (avg)

2.89%

ROE (avg)

4.49%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

902

Industry P/E

Price to Book Value

1.97

EV to EBIT

-226.97

EV to EBITDA

289.24

EV to Capital Employed

1.92

EV to Sales

0.91

PEG Ratio

8.81

Dividend Yield

0.09%

ROCE (Latest)

-0.84%

ROE (Latest)

0.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Bullish

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,530.62 MM

NET PROFIT(HY)

Higher at CNY 69.41 MM

RAW MATERIAL COST(Y)

Fallen by -13.27% (YoY

NET SALES(9M)

Higher at CNY 10,504.67 MM

CASH AND EQV(HY)

Highest at CNY 4,912.14 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.67 times

-10What is not working for the Company

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

OPERATING PROFIT MARGIN(Q)

Lowest at -10.66 %

PRE-TAX PROFIT(Q)

Lowest at CNY -166.62 MM

NET PROFIT(Q)

Lowest at CNY -93.55 MM

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

Operating Cash Flow

Highest at CNY 1,530.62 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 4,912.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.67 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -13.27% (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.

Interest

At CNY 37.96 MM has Grown at 13.7%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 1,765.06 MM has Fallen at -17.95%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 1,765.06 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -188.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -10.66 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -166.62 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -93.55 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)