According to the Nomura report, the long-term value of Dechang (00179.HK)'s new facilities in Mexico and India is beginning to show, and it is estimated that the total production capacity can be increased by 10%. It is believed that production capacity facilities in Mexico and India will be completed early next year. As the two plants are put into operation, the initial cost pressure will gradually decrease.

The bank estimates that every 1% drop in copper prices can increase the group's gross profit margin by 0.1%. Based on the fact that 40% of the Group's revenue comes from Europe, the strengthening of the euro can raise revenue forecasts. However, since the Group's stock price was adjusted in early July, the valuation was quite attractive. The rating was upgraded from “neutral” to “buy”, and the target price increased from 27.6 yuan to 29.5 yuan, which means that the price-earnings ratio in 2017 was 14 times.