Daiwa released a research report, which lowered the target price of Yuehai investment (00270) from HK $14.2 by 8.5% to HK $13, and upgraded its rating from “outperforming” to “buying”. According to the report, the company announced that the final dividend in 2020 will only increase by 2%, which disappointed the market. Its share price has fallen about 20% since March 26. The Hang Seng Index recently announced that it would exclude the company from the Hang Seng China enterprise index, which made the stock price continue to decline. According to the bank, the decline of about 22% in the company’s share price since the beginning of the year is an over adjustment, which reflects the worst situation at present. Assuming that the company’s dividend payout increases by 2% in 2021, the current forecast dividend payout rate of 5.4% in 2021 will look attractive.