Maximize the Value, GO for Dah Sing

Smartkarma: 山不转路转 : “A Mountain Cannot Turn, but a Road Can”

Dah Sing Financial Holdings (440 HK) and Dah Sing Banking Group Ltd (2356 HK) appear to be on the right path as evidenced by their respective stellar PH Scores™ .

The PH Score™ is a fundamental momentum-quantamental score that scores banks according to changes in value-quality. The Score encompasses Profitability, Operating Efficiency, Liquidity, Capital, Asset Quality, and Coverage. Scores lie between 0 and 10, with higher scores representing more positive signs. Dah Sing Financial Holdings and Dah Sing Banking Group score 9.7 and 9.0, respectively.

The difference in score between the two entities is due to the >40% valuation discount that exists at Dah Sing Financial Holdings. The latter trades on a P/Book of 0.7x, an Earnings Yield of 18.2%, and a Mkt Cap./Deposits of just 10%.