Bank of America Merrill Lynch downgraded Fuzhikang (02038.HK) to a neutral rating, and lowered the target price to 3.2 yuan. The bank expects that the company's revenue growth in 2016 and 2017 will be affected by the slowdown in mainland economic growth and the slowdown in smartphone demand growth in emerging markets. It will slow from 37% and 22% in 2014 and 2015 to 4% and 3%. Its main customers, such as Xiaomi, Coolpad (02369.HK), Motorola and Sony, are all affected by emerging market demand, and Huawei alone is still a bright spot. Fuzhikang sees India as the next focus market. At the same time, the company also faces major problems such as the long investment period, small scale, and low average prices in the first phase.