Gelonghui, June 15 丨 Motong Development Research Report said that although the market has generally anticipated the merger of Vodafone and Three UK, it is believed that Changhe may eventually withdraw from the telecommunications business by shifting to an asset-light strategy. The transaction involved no cash payments, and the £1.68 billion debt owed by the UK to Changhe will be repaid in cash after the merger of the companies. The bank believes that after the merger is completed, the market's expectations for the repurchase of the Group's shares will be further raised. It also believes that cash flow, dragged down by negative cash flow from the telecommunications business, has decreased significantly, and is not yet fully reflected in its stock price. The bank maintained the Group's “increase holdings” rating, with a target price of HK$69. The bank mentioned that as part of the deal, Three UK will repay £1.68 billion in shareholder loans to Changhe, as well as 100 billion yuan of cash proceeds from the sale of Eurotel Tower and Italy's network infrastructure. The bank expects that the company will use part of its cash for stock repurchases, which will be the main source of support for its stock price. After the transaction is completed, Changhe needs to confirm the cumulative non-cash exchange losses totaling 10 billion yuan in the asset profit and loss statement. However, due to the non-cash nature of such accounting losses, the bank is not expected to have any impact on the company's dividends. The stock is now at HK$49, with a total market value of HK$187.7 billion.