About a year ago SBI E2-Capital upgraded its recommendation on Truly International Holdings from 'buy' to 'strong buy', prompted by soaring first-quarter profit and turnover for one of greater China's largest makers of liquid crystal displays for hand-held electronics. Truly had announced that its earnings in the first quarter last year were 344 per cent higher at $115.9 million and that turnover rose 227 per cent to $682.3 million over the same period in 2003. It made up to 30,000 colour-display units a day and aimed to increase this to 100,000 by the end of this year. It was spending US$100,000 on a second production line. Gross margin was 28.8 per cent for the quarter, up from 28.4 per cent in the previous quarter. SBI revised up its earnings forecast by 10 per cent for last year and this year. Its target price was raised to $20.60 from $18.60. The counter was trading at $10.20 a year ago. Last month Truly said it would spend more than $500 million over the next three years to increase production capacity. In the first quarter of this year turnover rose 48 per cent to $1 billion while net profit jumped 50 per cent to $174 million. Last year, turnover soared 143 per cent to $3.41 billion and earnings 173 per cent to $527 million. The counter closed on Friday at $10.50.