Dah Sing Financial (2356 HK): Discounts On Discounts

• In my stub monitor, I see Dah Sing Financial (440 HK) at trading "cheap" to 74.4%-held Dah Sing Banking (2356 HK).

• I see DSF at a 51% discount to NAV, around its one-year average. However the simple ratio (DSF/DSB) and implied stub are at multi-year lows.

• Separately, DSB is trading at a ~62% discount to NAV - applying its 13.2%-holding in Bank of Chongqing (1963 HK) - around a one-year high. This is, however, a weak stub.

Both DSF and DSB are illiquid. Look away now if this is not your thing.

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The Trade.

• If playing the ratio, then this might be a simple set-up.

• Fundamentally, DSF's stubs ops are not exactly blowing the lights out.

• IF you think credit impairment losses have peaked, or are peaking, you may be better off investing directly into DSB.

This insight is labelled bullish, as I'm not bearish DSF here.