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Dah Sing Banking Group Limited (2356.HK)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$95.36 - $420.02$166.15
Multi-Stage$75.23 - $82.36$78.73
Blended Fair Value$122.44
Current Price$9.09
Upside1,246.95%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS9.63%8.41%0.760.400.340.320.430.480.440.390.370.37
YoY Growth--90.00%17.65%6.25%-25.58%-10.42%9.17%12.91%5.49%0.04%8.85%
Dividend Yield--9.27%8.03%6.07%4.80%5.40%4.61%3.18%2.27%2.59%2.69%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)4,387.58
(-) Cash Dividends Paid (M)1,807.13
(=) Cash Retained (M)2,580.45
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)877.52548.45329.07
Cash Retained (M)2,580.452,580.452,580.45
(-) Cash Required (M)-877.52-548.45-329.07
(=) Excess Retained (M)1,702.932,032.002,251.38
(/) Shares Outstanding (M)1,405.751,405.751,405.75
(=) Excess Retained per Share1.211.451.60
LTM Dividend per Share1.291.291.29
(+) Excess Retained per Share1.211.451.60
(=) Adjusted Dividend2.502.732.89
WACC / Discount Rate7.01%7.01%7.01%
Growth Rate4.28%5.28%6.28%
Fair Value$95.36$166.15$420.02
Upside / Downside949.07%1,727.81%4,520.66%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)4,387.584,619.364,863.385,120.295,390.785,675.555,845.82
Payout Ratio41.19%50.95%60.71%70.47%80.24%90.00%92.50%
Projected Dividends (M)1,807.132,353.562,952.683,608.534,325.435,108.005,407.38

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.01%7.01%7.01%
Growth Rate4.28%5.28%6.28%
Year 1 PV (M)2,178.432,199.322,220.21
Year 2 PV (M)2,529.602,578.352,627.56
Year 3 PV (M)2,861.442,944.553,029.25
Year 4 PV (M)3,174.693,298.223,425.33
Year 5 PV (M)3,470.093,639.693,815.86
PV of Terminal Value (M)91,535.9396,009.75100,656.81
Equity Value (M)105,750.18110,669.88115,775.03
Shares Outstanding (M)1,405.751,405.751,405.75
Fair Value$75.23$78.73$82.36
Upside / Downside727.58%766.08%806.03%

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