Dah Sing Banking Group Ltd. (2356) 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

Dah Sing Financial Holdings Ltd.

Dah Sing Banking Group Ltd.

China Merchants Bank Co., Ltd.

Bank of Qingdao Co., Ltd.

Dongguan Rural Commercial Bank Co., Ltd.

Hang Seng Bank Ltd.

Chongqing Rural Commercial Bank Co., Ltd.

Bank of Communications Co., Ltd.

China Construction Bank Corp.

Guangzhou Rural Commercial Bank Co. Ltd.

China Minsheng Banking Corp., Ltd.

Why is Dah Sing Banking Group Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Assets (ROA) of 0.72%

Poor long term growth as Net Interest Income (ex other income) has grown by an annual rate of 0% and Net profit at 7.45%
Weak Capital Buffers- the bank has a low Capital Adequacy Ratio of 0% signifying inadequate buffers against its risk based assets

Flat results in Dec 25

GROSS NPA (%)(Q) Highest at 2.97%
ROCE(HY) Lowest at 0.96%
NET SALES(Q) Lowest at HKD 5,060.37 MM

With ROA of 1.48%, it has a Attractive valuation with a 0.46 Price to Book Value

Over the past year, while the stock has generated a return of 28.66%, its profits have risen by 37.3% ; the PEG ratio of the company is 0.1

Consistent Returns over the last 3 years

Along with generating 28.66% returns in the last 1 year, the stock has outperformed Hang Seng Hong Kong in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dah Sing Banking Group Ltd. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

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

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

Is Dah Sing Banking Group Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Dah Sing Banking Group Ltd.

28.66%

3.44

28.85%

Hang Seng Hong Kong

0.26%

0.01

20.12%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.80%

EBIT Growth (5y)

7.80%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

45.42%

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

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

0.46

EV to EBIT

1.00

EV to EBITDA

0.86

EV to Capital Employed

0.11

EV to Sales

0.22

PEG Ratio

0.09

Dividend Yield

0.17%

ROCE (Latest)

10.88%

ROE (Latest)

14.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 9,881.12 MM

ROCE(HY)

Highest at 0.96%

PRE-TAX PROFIT(Q)

At HKD 1,325.64 MM has Grown at 102.5%

NII(Q)

Highest at HKD 3,068.53 MM

OPERATING PROFIT MARGIN(Q)

Highest at 26.2 %

NET PROFIT(Q)

At HKD 1,370.55 MM has Grown at 85.64%

-9What is not working for the Company

GROSS NPA (%)

ROCE(HY)

Lowest at 0.96%

NET SALES(Q)

Lowest at HKD 5,060.37 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DIVIDEND PER SHARE(HY)

Lowest at HKD 0

Here's what is working for Dah Sing Banking Group Ltd.

Operating Cash Flow

Highest at HKD 9,881.12 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Pre-Tax Profit

At HKD 1,325.64 MM has Grown at 102.5%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (HKD MM)

NII

Highest at HKD 3,068.53 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (HKD MM)

Operating Profit Margin

Highest at 26.2 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

At HKD 1,370.55 MM has Grown at 85.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

CASA

Highest at 19.5%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is improving. However, the bank may not be taking adequate risk in its lending book.

CAR (%)

Here's what is not working for Dah Sing Banking Group Ltd.

Non Performing Loans (%)

Highest at 2.97% and Grown

In each half year in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are increasing

Non Performing Loans (%)

Net Sales

Lowest at HKD 5,060.37 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (HKD MM)

Dividend per share

Lowest at HKD 0

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (HKD)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)