China Galaxy International Continues to Support DC Holdings Stock Purchases Based on Good Prospects
Article by a China Galaxy International analyst on January 9 hailed Digital China Holdings Ltd. (DC Holdings, 00861.HK) subsidiary DCITS (000555.SZ, of which DC Holdings possesses 40.4% of shares) a leading company in the financial IT service realm. Coupled with DC Holdings’ development driven by self-developed core technology over the long term, DCITS is to reap a bountiful harvest.
According to the article, the estimated value of the two companies is far below that of others in the industry, so investors believe the two may soon catch up. China Galaxy International is maintaining its “overweight” assessment of DC Holdings stocks with a target of HKD 5.15 based on a P/E ratio of 22 for 2020, which is lower than the five-year average of 30.
China Galaxy International believes that as DCITS’s largest shareholder, DC Holdings could be seen as a beneficiary of the financial IT investments. China Galaxy International predicts DC Holdings’ other forms of business (such as the smart industry chain and smart cities) will contribute even more and drive growth for the company over the short term.