According to a research report released by JTO on April 4, Daxin Banking Group (2356.HK) and Daxin Financial (0440.HK) made a net profit of 1.7 billion yuan and 1.3 billion Hong Kong dollars respectively last year, an annual increase of 11% and 13% respectively, and an annualized return on equity of 5.7% and 4.5%. The performance of both companies was lower than the bank's expectations, mainly due to a large impairment loss to Bank of Chongqing (1963.HK) and a decline in insurance profits. The bank maintained its "overweight" rating on Dah Sing Banking Group and Dah Sing Financial, and lowered its profit forecasts for Dah Sing Banking Group by 20% and 18% for fiscal years 2022 and 2023, reflecting a more conservative momentum of fee income and impairment charges for the equity of Bank of Chongqing. this was partly offset by a better outlook for net interest margin, with the target price lowered from HK $9 to HK $8.80. The target price for Dah Sing Financial has been slightly reduced from HK $29.8 to HK $29.3.