JPMorgan Chase & Co reported that 00303.HK 's medium-term income was in line with expectations, but its net profit was 6% lower than the bank's forecast. due to weak sales of its platform products and the depreciation of the euro, the company's share price outperformed the state-owned enterprises index (HSCEI) by 12% in the past 12 months, maintaining its "underweight" rating and raising its target price from 75 yuan to 80 yuan, equivalent to 12 times forecast earnings for fiscal year 2017.

The bank cut its 2016 earnings forecast by 6.4 per cent because of weaker-than-expected medium-term profits, but expects more new products to emerge in the future, with sales of contracted production services (CMS) rising in fiscal 2017 and raising its 2017 earnings forecast by 3.8 per cent.

The bank pointed out that the main problems of the Group are exchange rate fluctuations and falling tablet sales. It is believed that these problems will not be sustained and business performance is close to bottoming out, as the company will launch new products and lower production costs in order to maintain healthy profits and dividends in the future. Sales of new production contracts and new products will lead to sales growth in fiscal year 2016.