Digital China 0861

Digital China 0861

Postby winston » Mon Dec 28, 2009 11:28 am

Not vested. From Phillips:-


Risks

Up risks
1. Rapid RMB appreciation increases exchanges profit.
2. Further to purchase excellent asset with reasonable price.
3. Handset distribution develops than expected.

Down risks

1. Profitability rebound lower than expected.
2. Chinese economy recovers below expectation.
3. Business shares in market declines.

Performance growth with high certainty brings up-room for valuation

Given its distribution and systems business strength improving as well as the outlook of IT services business, we believe in its high certainty of future performance growth. Furthermore, efficient operating expense control supplies safe margin guard for this increase.

Therefore, we think it is reasonable to give 12x PE to its distribution and systems business and 25x PE to its IT services business on FY09/10 EPS.

We expect Digital China`s EPS in FY09/10 and FY10/11 will be HK$0.898 and HK$1.165, and give 12-month TP of HK$12.66 initiatively, Buy rating.
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Re: Digital China 0861

Postby winston » Mon Jan 18, 2010 3:44 pm

Not vested. From UOBKH:-

Digital China (861 HK). We initiate coverage on Digital China (DC) with a BUY call and target price HK$13.80 or 15x FY11F PE based the average PE of the other two IT distributors in China.

DC is the largest IT distributor in China with a 25% market share. It is transforming into an IT services vendor and is now the largest small- to medium-sized banks’ core banking system provider in China.

It is also the biggest government IT services vendor specialising in central taxation system and is one of the biggest BSS telecommunications system providers in China.
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Re: Digital China 0861

Postby winston » Tue Apr 13, 2010 7:27 am

Not vested. From Dr. Check, The Standard HK:-

Technology counter looks bright as rebound on the cards

Tuesday, April 13, 2010

Do not pick a stock simply by guessing whether the index will go up or down.

Dr Check monitors about 50 core shares. Some are longer-term holdings but others such as information technology firm Digital China (0861) are for short-term trade only.

For four straight years since 2005, the firm has outperformed the industry with growth rates above 20 percent. In January, Digital China and Octopus formed a partnership to develop Citizen Card application solutions and operational services in the mainland.

With a total investment of 120 million yuan (HK$136.37 million), the joint venture is expected to begin operations this year.

This news is the driving force for the stock. But Dr Check questions its future. It is not difficult for individual municipal governments to develop their own octopus card system. From HK$3.20 the stock rose to HK$15 in the past year. If it slips below HK$13, a 10 to 15 percent rebound is quite probable.

http://www.thestandard.com.hk/news_deta ... 00413&fc=2
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Re: Digital China 0861

Postby winston » Thu Nov 11, 2010 12:05 pm

Not vested. From UOBKH:-

Valuation/Recommendation

• We maintain our view that DC benefits from increasing domestic consumer spending and IT spending in China in the long run.

DC is a well-managed company which outperforms its peers in terms of cost control, product portfolio and business diversification. The urbanisation process in China creates significant growth potential for DC’s Digital City solution.

Maintain BUY with a new target price of HK$18.14, based on 19.5x FY11F PE, on par with Synnex’s 19.5x.

The target price revision was mainly due to an earnings upgrade and a higher target PE.

http://research.uobkayhian.com/research ... 234865.pdf
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Re: Digital China 0861

Postby winston » Tue Nov 23, 2010 1:20 pm

Not vested. From UOBKH:-

• Cloud computing (internet-based computing) is getting hot.

Regional senior management of major IT companies mentioned a substantial portion of R&D resources will be allocated to cloud computing.

About 70% of R&D personnel at Microsoft are currently focusing on cloud computing. In the near future, 90% of Microsoft’s R&D resources will be allocated to cloud computing, signalling its commitment to this area. Hardware suppliers such as EMC, Cisco, Juniper Networks and Avaya are launching products for the development of cloud computing.

No single company will dominate the development of cloud computing and software and hardware players have to cooperate with each other. DC is a service provider which combines both hardware and software to help customers launch computing solutions.


Valuation/Recommendation

• We maintain our view that DC benefits from the increasing domestic consumer and IT spending in China. We still like DC despite the recent share price rally. Maintain BUY with a target price of HK$18.14, based on 18.6x FY11F PE.
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Re: Digital China 0861

Postby winston » Sun Jun 01, 2014 9:27 pm

not vested

Digital China Holdings Ltd (HK:861)

Listed on the main board of the Hong Kong Stock Exchange in 2001 following a spin off from the Legend Group in 2000, Digital China is the largest integrated IT services provider and the dominant mobile telephony operator in China with revenue of HKD70.319 billion in FY2011/12 (1 April 2011 – 31 March 2012).

Ranked ‘top 100’ in Fortune China 500 for three consecutive years from 2010 to 2012, the Company’s subsidiaries are principally engaged in the sale and distribution of general information technology products and systems products; and provision of supply chain services and information technology (IT) services.

Due to unfavourable market conditions, the company’s revenues for the nine months ended 31 December 2013 decreased 8% to HK$52.26 billion, while net income decreased 93% to HK$84.1 million.

However, with more than 800 million subscribers the company is well positioned to leverage off the growing urbanisation and ‘informatisation’ happening in China, especially once market conditions improve.

Lai expects data-related revenues to skyrocket from a low base. He also expects the company to regain its dominance due to a superior 4G network, with the rapid decline of 4G smartphone prices leading to rapid subscriber growth.

Return on equity has averaged 16% since 2004 and recently increased to 17.44%, while earnings per share (EPS) growth has been exceptional over the last five years. Based on 3.6x EV/EBITDA the company looks cheap.

http://www.thebull.com.au/premium/a/463 ... tocks.html
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