Fuzhikang Group (02038-HK) issued a profit warning after early October last year, and the latest data forecast that the consolidated net profit for the year to December 31, 2016 will range from about $135 million to $145 million, a decrease of about 37 to 41 per cent compared with the group's net consolidated profit for the year to 2015.

At 09:43, Fuzhikang Group reported 2.88 yuan, a three-month high, up 24 yuan, or 9 percent. 12.8 million shares were traded, involving an investment of 12.8 million yuan.

The reason for the rise in stock prices is very simple, because this profit forecast is a revised version. In its October profit forecast, the company expects a consolidated net profit of less than $110 million for the year ended December 2016, compared with $229 million a year earlier. After reading the data, we can see that the profit has been revised upward, so it can be said that this is the "real" Yingxi of Fuzhikang Group.

Credit Suisse is also very eye-catching, issuing a report to raise the target price of Fuzhikang from 2.8 yuan to 3.3 yuan, and its rating from "neutral" to "outperform the market".

Yesterday's announcement mentioned the reasons for the rise in profits, and the company expects a significant reduction in overall net profit can be attributed to a number of factors. these include the following major factors: reduced demand from some of the group's major customers, including customer transformation, led to a decline in group product sales (sales of about $6.2 billion in 2016, compared with $7.45 billion in 2015) The group's gross profit fell as a result of the decline in sales. Obtain service charges from these customers and reduce mold sales. The significant loss resulting from the write-off of the Group's property, plant and equipment is expected to range from US $21 million to US $23 million. The Group's income tax expenses increased to approximately US $75 million. Total operating expenses increased to about $331 million. Even though these factors will be partially offset by the Group's significant foreign exchange earnings of US $36.569 million for the period from July to December 2016.