Credit Suisse raised the target price of Precision Electronics (0710.HK) from HK$3.50 to HK$5.00, maintaining its outperforming market rating.

Credit Suisse said that, due to the recent weakening of the yen, Precision Electric benefited from lower costs because more than 65% of its components were imported from Japan. Credit Suisse said that if FinTech uses 30% of its cost savings for car displays, the bank's profit forecast for 2013 may increase by 21%.

Credit Suisse also said that the significant increase in Chinese demand and new orders in the Japanese market helped FinTech offset the adverse effects of the contraction in European demand in 2012. South Korea's demand has bottomed out, and European demand has stopped deteriorating. With a price-earnings ratio of 6.6 times, a price-to-book value ratio of 0.7 times, and a dividend yield of 7% in 2013, it is one of the few European automobile industry recovery concept stocks.

The stock rose 0.8% to HK$3.83 on Wednesday.