Deutsche Bank maintained its Fuzhikang (02038.HK) buying rating, and the target price was lowered from 4.1 yuan to 3.8 yuan. Deutsche Bank said that Fuzhikang's performance in the second half of the year fell short of expectations due to delays in customer projects and declining gross margin. However, it believes that the outlook for this year is improving, and Xiaomi, one of its major customers, will launch more high-end phones. The bank lowered its earnings per share forecast for this year and next two years by 5%-8% to reflect the weakening of the Group's gross margin. Furthermore, the Group's announcement of a special dividend was a surprise, which became a positive stock price catalyst, bringing the Group's cash return to about 7%. Due to the slowdown in industry growth, it is expected that Fuzhikang will not require much capital expenditure in the future. In addition to the parent company Hon Hai Group's acquisition plan for Sharp, there is a need for capital. Therefore, it is believed that Fuzhikang will maintain a high dividend rate.