Deutsche Bank reiterated Fuzhikang (02038.HK)'s buying rating, and the target price dropped to 4.6 yuan. Deutsche Bank published a report saying that Fuzhikang (02038.HK)'s stock price has outperformed the market by 22% in the past three months, mainly due to market concerns about Sony's reduction in ODM orders and the weakness in the mainland smartphone market. However, the bank believes that the analysts' profit model has taken into account the factors of Sony cutting orders, and that the slowdown in the mainland market is worse than the bank's expectations. According to Deutsche Bank, Fuzhikang's earnings for the second half of this year will be cut by 18% to US$139 million, while the revenue forecast will be cut 7% to US$4.1 billion to reflect the slowdown in the growth of mainland smartphone brands. Xiaomi accounts for 15 to 20% of Fuzhikang's revenue, but accounts for about 50% of profit per share. The bank predicts that Xiaomi's shipment volume in the second half of this year will only reach about 35 million units, which is the same as in the first half of the year. Looking ahead to Fuzhikang's prospects for the first half of next year, the bank expects its orders from Sony to continue to decline, but it still expects Fuzhikang's earnings per share to increase 10% compared to the second half of this year, mainly due to the revival of Xiaomi phones, the increase in the contribution of the metal case business, the slight recovery in mainland smartphone shipments, and the gradual increase in India's mobile phone assembly business.