[ET Net News Agency, 24 August 2018] Goldman Sachs raised its target price for Dah Sing
Banking Group (DSBG)(02356) to HK$19.2 from HK$18.3, and maintained its "neutral" rating.
Incorporating 1H estimates, the research house raised its operating profits forecasts by
17% each year for 2018-20 largely to reflect better operating income. However its EPS
declines by 10%/11%/11% on account of removal of Bank of Chongqing (BoCQ)(01963) profit
accretion for future periods.
Goldman said DSBG's HK$403mn impairment for its 14.7% stake in BoCQ didn't affect the
capital position and hence the dividend paying capacity of the bank. The impairment
happened as VIU (Value in use) became higher than the Carrying Value. (KL)