Goldman Sachs raises DAHSING BANKING's target price to HKD 9.3, maintaining a "Neutral" rating

Goldman Sachs released a report indicating that DAHSING BANKING (02356.HK) had a basic earnings per share of HKD 1.12 in the first half of the year, exceeding the bank's forecast by 6%. Revenue increased by 15% compared to the same period last year and was also 6% higher than the bank's estimate, primarily due to better net interest income, although this was partially offset by weaker service fee income. DAHSING BANKING's operating profit in the first half was 2% lower than Goldman Sachs' forecast. Profits from joint ventures were better than expected. As a result, net profit was 6% higher than the bank's estimate. Management declared an interim dividend of HKD 0.31, higher than the bank's forecast of HKD 0.27, indicating a payout ratio of 28% for the period.

After accounting for the first half earnings, the bank raised its earnings per share estimates for DAHSING BANKING for the years 2025 to 2027 by 14%, 12%, and 16% respectively, to reflect stronger-than-expected interest margins, lower fee income, and higher credit cost forecasts. The rating is maintained at "Neutral," with the target price raised from HKD 8.2 to HKD 9.3