Citi published a report stating that it lowered the target price of Coolpad Group (02369-HK) from 0.64 yuan to 0.49 yuan, reaffirming the selling rating.

The bank said it cut Coolpad Group's earnings estimates by 24% in 2017 and 2018 due to weak performance in the Chinese and Indian markets. Citi drastically reduced its 2016-2018 smartphone shipments forecast to 18.1 million units, 17.7 million units, and 19.4 million units.

The bank believes that in the face of many mainland mobile phone vendors, Coolpad Group expects competition to intensify, and expansion in the international market is still slow.

Furthermore, after the exit of former senior Huawei executives of Coolpad Group, management is facing restructuring and will launch new products at the end of this year or next year. Citi said it will focus on whether the new products will put the stock ahead of its competitors.