Dah Sing Financial Holdings (0440) AI Stock Analysis

• Market Cap: HK$11.50B
• Dividend Yield: 6.53%
• Average Volume (3M): 339.25K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.57
• Revenue Growth: -1.78%
• EPS Growth: 10.62%
• Country: HK
• Employees: 3,047
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 4.41
• Shares Outstanding: 319,575,100
• 10 Day Avg. Volume: 360,656
• 30 Day Avg. Volume: 339,251
• PEG Ratio: 1.03
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 1.66
• P/FCF Ratio: 2.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: HK$40.00 ▲(11.17% Upside)

Dah Sing Financial Holdings receives a strong overall score driven by its attractive valuation and positive technical indicators. The low P/E ratio and high dividend yield suggest undervaluation, while the bullish technical signals indicate strong market momentum. Despite solid financial performance, cash flow challenges present a risk that slightly tempers the overall score.

Positive Factors

Profit Margin Improvement

The improvement in net profit margin indicates enhanced profitability and efficient cost management, which can support long-term financial stability.

Low Leverage

Low leverage suggests prudent financial management, providing the company with flexibility to invest in growth opportunities or weather economic downturns.

Revenue Growth

Consistent revenue growth reflects strong market demand and effective business strategies, supporting long-term expansion and competitiveness.

Negative Factors

Negative Operating Cash Flow

Negative operating cash flow raises concerns about liquidity and the company's ability to sustain operations without external financing.

Unreported Free Cash Flow

Lack of free cash flow data limits visibility into cash generation capabilities, which is crucial for assessing financial health and investment capacity.

Equity Ratio Decline

A decline in the equity ratio suggests a reduction in equity financing, potentially impacting the company's ability to fund growth without increasing debt.

Dah Sing Financial Holdings Business Overview & Revenue Model

Company Description

Dah Sing Financial Holdings Limited, an investment holding company, provides banking, insurance, financial, and other related services in the People's Republic of China. The company operates through Personal Banking, Corporate Banking, Treasury and Global Markets, Overseas Banking, and Insurance Business segments. The Personal Banking segment accepts various deposits from individual customers; and provides residential mortgage loans, personal loans, overdrafts, vehicle financing, and credit card services, as well as insurance sales and investment services. The Corporate Banking segment accepts various deposits; and offers loans and working capital financing to commercial, industrial, and institutional customers, as well as trade financing services. The Treasury and Global Markets segment provides foreign exchange services; cash management services for deposit taking and lending; and interest rate risk management services. It also manages investment in securities. The Overseas Banking segment offers personal and corporate banking products and services. The Insurance Business segment is involved in the insurance and pension fund management business. The company also provides insurance agency, nominee, and securities dealing services; and invest in properties. The company was formerly known as Fivetech Investments Limited and changed its name to Dah Sing Financial Holdings Limited in July 1987. Dah Sing Financial Holdings Limited was founded in 1947 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

Dah Sing Financial Holdings generates revenue through several key streams. The primary source is interest income from its banking operations, which includes interest earned on loans and advances made to customers. The company also earns fee-based income from various banking services such as account maintenance, transaction services, and advisory services. Furthermore, the insurance segment contributes to revenue through premiums collected from policyholders and investment income generated from the management of insurance funds. The asset management and securities brokerage divisions add to the revenue through management fees and commissions on trades. Significant partnerships with other financial institutions, along with a strong customer base, further bolster its earnings potential.

Dah Sing Financial Holdings Financial Statement Overview

Summary

Dah Sing Financial Holdings demonstrates solid revenue and profit growth with effective cost control, reflected in strong profit margins. The balance sheet is stable, with low leverage and improved return on equity. However, cash flow challenges exist, with negative operating cash flow and unreported free cash flow, highlighting potential liquidity risks.

Income Statement

Dah Sing Financial Holdings shows a stable growth trajectory with a revenue growth rate of 8.89% from 2023 to 2024. The gross profit margin remains strong at 100%, consistent with previous years, indicating efficient cost management. The net profit margin improved to 30.96% in 2024 from 32.06% in 2023, reflecting increased profitability. However, the absence of EBITDA data for 2024 limits a full assessment of operational efficiency.

Balance Sheet

The company's balance sheet reflects financial stability with a debt-to-equity ratio of 0.12 in 2024, indicating low leverage and prudent financial management. The return on equity improved to 4.83% in 2024, showcasing better utilization of shareholder funds. However, the equity ratio has slightly decreased to 12.99% from 12.11% in 2023, suggesting a minor reduction in equity financing.

Cash Flow

Cash flow analysis shows challenges as the operating cash flow was negative in 2023 and not reported in 2024, indicating potential liquidity issues. Free cash flow also remains unreported for 2024, limiting insights into cash generation capabilities. The absence of free cash flow growth and operating cash flow to net income ratios poses questions on cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.95B	5.40B	4.96B	4.50B	7.46B	8.65B
Gross Profit	5.95B	5.40B	4.96B	6.88B	6.01B	8.65B
EBITDA	2.35B	2.93B	2.00B	2.41B	2.51B	2.28B
Net Income	1.97B	1.67B	1.59B	1.22B	1.31B	1.16B
Balance Sheet
Total Assets	271.81B	266.52B	269.79B	259.85B	256.53B	254.96B
Cash, Cash Equivalents and Short-Term Investments	0.00	15.67B	21.02B	21.43B	16.85B	19.93B
Total Debt	4.27B	4.15B	8.89B	8.45B	4.13B	8.02B
Total Liabilities	226.62B	223.33B	228.79B	222.69B	218.70B	219.27B
Stockholders Equity	36.29B	34.64B	32.68B	29.52B	30.19B	28.39B
Cash Flow
Free Cash Flow	4.51B	4.05B	-2.10B	5.36B	3.69B	-7.52B
Operating Cash Flow	4.92B	4.40B	-2.10B	5.54B	3.93B	-7.38B
Investing Cash Flow	25.82M	-43.53M	-44.88M	-38.60M	-93.54M	2.65M
Financing Cash Flow	-7.91B	-7.98B	962.65M	2.95B	1.19B	7.45B

Dah Sing Financial Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.98
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0440, the sentiment is Positive. The current price of 35.98 is above the 20-day moving average (MA) of 35.67, below the 50-day MA of 36.18, and above the 200-day MA of 31.38, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 52.38 is Neutral, neither overbought nor oversold. The STOCH value of 81.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0440.

Dah Sing Financial Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0440	77 Outperform	HK$11.50B	5.83	5.63%	6.53%	-1.78%	10.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
3866	67 Neutral	HK$26.25B	5.11	―	4.45%	4.33%	17.13%
2356	67 Neutral	HK$15.01B	6.69	6.58%	6.54%	―	―
1963	67 Neutral	HK$34.32B	4.46	9.11%	5.69%	5.30%	9.05%
0023	66 Neutral	HK$35.95B	8.03	4.41%	5.78%	-7.68%	49.57%
9668	55 Neutral	HK$16.16B	3.39	5.51%	―	-5.76%	18.15%

Dah Sing Financial Holdings Corporate Events

Dah Sing Financial Holdings Enhances Governance with New Committee

Dah Sing Financial Holdings Limited has established a Nomination and Remuneration Committee to oversee the remuneration and nomination processes for the company’s board and senior management. The committee is tasked with ensuring the board’s structure and composition align with the company’s corporate strategy, as well as managing succession planning and remuneration policies. This initiative aims to enhance the company’s governance framework, ensuring accountability and independence in decision-making processes, ultimately benefiting shareholders and aligning with regulatory standards.

The most recent analyst rating on (HK:0440) stock is a Buy with a HK$40.00 price target. To see the full list of analyst forecasts on Dah Sing Financial Holdings stock, see the HK:0440 Stock Forecast page.

Dah Sing Financial Holdings Enhances Governance with New Committee

Dah Sing Financial Holdings Limited has established a Nomination and Remuneration Committee to oversee remuneration matters and manage the nomination process for key positions within the company. The committee is tasked with ensuring the board’s structure and diversity align with corporate strategy, reviewing the effectiveness of board operations, and advising on remuneration policies to maintain accountability and independence. This initiative is aimed at enhancing the company’s governance and aligning its remuneration practices with market standards and regulatory requirements.

The most recent analyst rating on (HK:0440) stock is a Buy with a HK$40.00 price target. To see the full list of analyst forecasts on Dah Sing Financial Holdings stock, see the HK:0440 Stock Forecast page.