Motong downgraded Daxin Finance's (00440.HK) rating increase to a neutral rating, and the target price was raised from 54 yuan to 58 yuan. Because of its performance, it has outperformed the market by 43%, which is in line with its sale of Daxin Life's business. Taking into account spin-off earnings, the profit forecast for FY2017 was raised by 161.6%. However, since there is limited room for growth, investors are advised to make a profit and leave the market.

According to the bank, the company can receive 8 billion yuan from the transaction, which is equivalent to the market account ratio of Daxin Life Insurance 2.2 times, the market account ratio of Daxin Insurance Services 1.11 times, and the market account ratio of Macau Life Insurance of 1.14 times. The potential profit before tax is 4.3 billion yuan, exceeding Motong's profit forecast for Daxin Finance by 200% this year. It is expected that the transaction will be completed next year.

The bank expects that the company will pay a special interest rate of 10 yuan per share, equivalent to a 19% dividend rate, but the stock price has risen 39% since the beginning of the year, which is generally reflected. The company has the ability to privatize Dah Sing Bank (02356.HK). Although it is estimated that it will not be in the short term, it is possible that special interest payments will be reduced as a result.