DAH Sing Financial Holdings has been given a strong buy recommendation from Mansion House Securities, which expects the contribution of Wing On Bank to help boost the company's profits by 62 per cent this year. The research report, issued earlier this month, said Dah Sing's larger branch network, customer base, loan, deposit and asset base should see it re-rated as a medium-sized bank. However, Mansion House said Dah Sing's improved profitability and larger size had not been fully reflected in its stock price, which closed yesterday at $25. The report said Dah Sing's stock, which is trading at a price-earnings ratio of about 14, should command a price-earnings ratio of 18 to 19. Dah Sing acquired the 16-branch Wing On Bank operation last November from Hang Seng Bank and Wing On International Holdings for $1.16 billion, which increased its branch network to 54. Mansion House said the deal had provided Dah Sing with the critical mass to compete with its peers, which include Wing Lung Bank, Guoco Group, Hongkong Chinese Bank and Union Bank. It said the similarities between the operations of Dah Sing and Wing On would mean the time required to integrate Wing On would be shortened, restructuring costs would be low and cross-selling existing products to Wing On clients would be easy. The report said Dah Sing was attracted to Wing On because Hang Seng's management had strengthened its financial position and the synergies between the two banks would enhance Dah Sing's position in the local banking industry. After the acquisition was announced, Dah Sing chairman David Wong declined to rule out future deals. Mansion House expects Dah Sing to make $347 million this year, with profits climbing 41 per cent to $490 million next year and 28 per cent to $625 million in 1995.