Daimo reiterated Fuzhikang's (02038.HK) holdings reduction rating, believing that there was no long-term growth engine. Although setting up a factory in India or providing additional advantages, competition was still fierce, and the target price remained at 2.3 yuan (this is quite predicting next year's market account rate of 0.64 times).

Morgan Stanley said that with regard to Fuzhikang issuing a profit warning for the whole year (year ending at the end of December), this is in line with expectations. The group expects product sales to be less than 5.7 billion US dollars, while the bank estimates the net profit for the year to be less than 110 million US dollars, and the bank estimates 64 million US dollars. The bank expects that although Fuzhikang will recover moderately in the second half of the year, there will be no growth momentum in the next 3 to 6 months. At the same time, there is still uncertainty about profits, including the current transformation of OEM brands such as OPPO/Vivo or Xiaomi, and market competition, and the company's progress in setting up a factory in India is also slow.