Credit Suisse gave Fuzhikang (02038.HK) for the first time to outperform the market rating, with a target price of 3.7 yuan. There are two major trends in smartphones in mainland China. One is product specification upgrades, and the other is exports. The bank believes that Fuzhikang is the main beneficiary among them. Its business in India started earlier than other players, and India will be the next major export market.

According to the report, Fuzhikang's main Chinese customers, including Huawei, Xiaomi, and OPPO, will further upgrade their product specifications in the first half of this year. Furthermore, orders from Sony and others are expected to recover or stabilize this year. Fuzhikang's earnings per share are expected to increase by 38%, 23%, and 16%, respectively, from 2015 to 2017.

According to the bank, Fuzhikang's earnings forecasts for 2015-2017 were 0.03, 0.04 and 0.04 US dollars per share, respectively.