OTCPK:DSFG.Y

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Dah Sing Financial Holdings

Executive Summary

Dah Sing Financial Holdings Limited, an investment holding company, provides banking, insurance, financial, and other related services in the People’s Republic of China.

Rewards

Trading at 68.5% below our estimate of its fair value

Pays a high and reliable dividend of 6.87%

Risk Analysis

No risks detected for DSFG.Y from our risk checks.


Snowflake Analysis

6 star dividend payer and undervalued.

Share Price & News

How has Dah Sing Financial Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DSFG.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.5%

DSFG.Y

-0.7%

US Banks

1.3%

US Market


1 Year Return

-34.1%

DSFG.Y

-23.5%

US Banks

14.9%

US Market

Return vs Industry: DSFG.Y underperformed the US Banks industry which returned -25.2% over the past year.

Return vs Market: DSFG.Y underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

DSFG.YIndustryMarket
7 Day-3.5%-0.7%1.3%
30 Day-7.4%2.6%4.7%
90 Day-10.7%4.8%17.1%
1 Year-30.5%-34.1%-20.8%-23.5%17.3%14.9%
3 Yearn/a-15.5%-22.2%38.9%29.9%
5 Yearn/a8.5%-4.7%71.3%52.8%

Price Volatility Vs. Market

How volatile is Dah Sing Financial Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dah Sing Financial Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DSFG.Y ($8.24) is trading below our estimate of fair value ($26.14)

Significantly Below Fair Value: DSFG.Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DSFG.Y is good value based on its PE Ratio (4.1x) compared to the US Banks industry average (9.6x).

PE vs Market: DSFG.Y is good value based on its PE Ratio (4.1x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: DSFG.Y is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: DSFG.Y is good value based on its PB Ratio (0.3x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Dah Sing Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DSFG.Y's forecast earnings growth (1.3% per year) is below the savings rate (2.2%).

Earnings vs Market: DSFG.Y's earnings (1.3% per year) are forecast to grow slower than the US market (22.2% per year).

High Growth Earnings: DSFG.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: DSFG.Y's revenue (5.4% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: DSFG.Y's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DSFG.Y's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Dah Sing Financial Holdings performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DSFG.Y has high quality earnings.

Growing Profit Margin: DSFG.Y's current net profit margins (34.5%) are lower than last year (38%).


Past Earnings Growth Analysis

Earnings Trend: DSFG.Y's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: DSFG.Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DSFG.Y had negative earnings growth (-10.8%) over the past year, making it difficult to compare to the Banks industry average (-2.9%).


Return on Equity

High ROE: DSFG.Y's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is Dah Sing Financial Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: DSFG.Y's Assets to Equity ratio (7.4x) is low.

Allowance for Bad Loans: DSFG.Y has a low allowance for bad loans (96%).

Low Risk Liabilities: 88% of DSFG.Y's liabilities are made up of primarily low risk sources of funding.

Loan Level: DSFG.Y has an appropriate level of Loans to Assets ratio (56%).

Low Risk Deposits: DSFG.Y's Loans to Deposits ratio (73%) is appropriate.

Level of Bad Loans: DSFG.Y has an appropriate level of bad loans (0.7%).


Next Steps

Dividend

What is Dah Sing Financial Holdings's current dividend yield, its reliability and sustainability?

6.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DSFG.Y's dividend (6.87%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: DSFG.Y's dividend (6.87%) is in the top 25% of dividend payers in the US market (4.51%)


Stability and Growth of Payments

Stable Dividend: DSFG.Y's dividends per share have been stable in the past 10 years.

Growing Dividend: DSFG.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.8%), DSFG.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DSFG.Y's dividends in 3 years are forecast to be well covered by earnings (29.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.3yrs

Average management tenure


CEO

Derek Wong (68 yo)

18.58yrs

Tenure

HK$12,092,000

Compensation

Mr. Hon-Hing Wong, also known as Derek, serves as Director of Banco Comercial de Macau SA since March 22, 2016. Mr. Wong serves as the Chief Executive and Managing Director of Dah Sing Banking Group Limite ...


CEO Compensation Analysis

Compensation vs Market: Derek's total compensation ($USD1.56M) is below average for companies of similar size in the US market ($USD3.16M).

Compensation vs Earnings: Derek's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Shou-Yeh Wong
Chairman of the Board33.58yrsHK$24.90m42.96%
HK$ 379.1m
Hon-Hing Wong
MD, CEO & Executive Director18.58yrsHK$12.09mno data
Pak-Ling Wang
Deputy Chief Executive19.58yrsHK$20.19mno data
Lee Kook
IR Officerno datano datano data
Tsu-Hing Wong
Group General Manager9.33yrsno data1.07%
HK$ 9.5m
Lau Suet-Chiu
Head of Group Risk of the Banking Group no datano datano data
Cheung-Wah Lam
Head of Retail Banking divno datano datano data
Lung-Man Chiu
Chief Executive of Banco Commercial de Macau S A & Executive Director of Dah Sing Bank16.58yrsno datano data
Wai-Nar Wong
Company Secretary7.42yrsno datano data
Wing-Fai Poon
CEO & Director of Dah Sing Insurance Co (1976) Ltd5.58yrsno datano data

9.3yrs

Average Tenure

66.5yo

Average Age

Experienced Management: DSFG.Y's management team is seasoned and experienced (9.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shou-Yeh Wong
Chairman of the Board33.58yrsHK$24.90m42.96%
HK$ 379.1m
Hon-Hing Wong
MD, CEO & Executive Director18.58yrsHK$12.09mno data
Pak-Ling Wang
Deputy Chief Executive19.58yrsHK$20.19mno data
Lau Suet-Chiu
Head of Group Risk of the Banking Group no datano datano data
Cheung-Wah Lam
Head of Retail Banking divno datano datano data
Lung-Man Chiu
Chief Executive of Banco Commercial de Macau S A & Executive Director of Dah Sing Bank16.58yrsno datano data
Wing-Fai Poon
CEO & Director of Dah Sing Insurance Co (1976) Ltd5.58yrsno datano data
Eiichi Yoshikawa
Non-Executive Director4yrsHK$312.00kno data
Tsai-To Sze
Independent Non-Executive Director23.58yrsHK$909.00kno data
Kwan-Yuen Leung
Independent Non-Executive Director2.67yrsHK$442.00kno data
Wai-Hung Tam
Independent Non-Executive Director1.67yrsHK$448.00kno data
Paul Michael Kennedy
Independent Non-Executive Director1.67yrsHK$479.00kno data

11.1yrs

Average Tenure

68yo

Average Age

Experienced Board: DSFG.Y's board of directors are seasoned and experienced ( 11.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dah Sing Financial Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dah Sing Financial Holdings Limited
  • Ticker: DSFG.Y
  • Exchange: OTCPK
  • Founded: 1987
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: HK$6.839b
  • Listing Market Cap: HK$882.426m
  • Shares outstanding: 319.58m
  • Website: https://www.dahsing.com

Number of Employees


Location

  • Dah Sing Financial Holdings Limited
  • Everbright Centre
  • 36th Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DAHS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
440SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
DSRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
440SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
440SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
DSFG.YOTCPK (Pink Sheets LLC)ADRUSUSDAug 2003

Biography

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 Person ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 00:42
End of Day Share Price2020/07/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.