STOCKWATCH: Dah Sing Financial sharply higher on optimistic outlook

HONG KONG (AFX-ASIA) - Dah Sing Financial Holdings Ltd shares closed the morning sharply higher on optimism over the bank's earnings prospects this year, analysts said.	    Market talk that HKCB is being targeted for takeover by United Overseas Bank of Singapore at a per-unit price of 4.0 hkd also helped support financials, thereby also benefiting Dah Sing, they added.	    Dah Sing closed the morning up 2.70 hkd or 6.56 pct at 43.80 hkd on volume of 487,600 shares.	    The Hang Seng Index was up 70.68 points at 13,611.49.	    Stephanie Lui, banking analyst with Tai Fook Securities, said: "Last week we went to the analysts' meeting with the bank. We were told that during the first three months of this year, the bank's net interest margins widened to 3.89 pct from 3.79 pct at the end of 2000 despite low loan growth expected during the year".	    Lui said the bank performed well in terms of non-interest income, posting a 19 pct annual growth here during the first quarter this year.	    "The major revenue driver was its insurance sector, with its insurance premiums posting a 25 pct annual growth during the first three months this year," she said.	    Lui said she expects Dah Sing to report a net profit of 930 mln hkd in 2001, compared with 810 mln in 2000.	    "Management said the bank expects to report a 2001 net profit of 900 mln-1.0 bln hkd. This is pretty much in line with our expectations," she said.	    She said she maintains a 'buy' recommendation on the stock, with a 12-month target price of 50.00 hkd.  

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