Credit Suisse maintained that Coolpad (02369.HK) outperformed the market rating, and the target price was lowered from 1.2 yuan to 1.15 yuan.

The bank pointed out that Coolpad forecasts a net loss of $2.05 billion in the first half of the year, with revenue falling 40% year-on-year, falling 18% and 47% respectively from the bank's expectations, mainly due to lower smartphone sales and non-operating losses recorded by subsidiaries. Based on the company's underperformance expectations and low shipment volume expectations, the bank lowered its 2017 and 2018 earnings forecasts by 0.3% and 1.1%, and lowered its 2016 earnings forecast to 3 cents per share, still based on 0.9 times the forecasted market account rate (the bottom of the historical cycle).

The bank also believes that Coolpad's poor performance confirms the bank's expectations. The bank's investigation found that the mainland mobile phone market will recover in the next quarter, but it will not benefit Coolpad, and Coolpad's open market channels will also take time to develop. Accordingly, the bank lowered the company's shipping forecasts from 2016 to 2018 by 23%, 9% and 8%, respectively, to 23 million units, 30 million units and 33 million units.

The bank still expects that the partnership between the company and LeTV will be announced in the third quarter. It will be a sway factor for the company's growth. It is expected that continued adverse business factors and performance in the second half of the year will be a short-term negative catalyst.