Market Overview - On September 4, the A-share market experienced a collective pullback, with all three major indices declining. The total trading volume reached 2.58 trillion yuan, an increase of over 180 billion yuan compared to the previous trading day. Despite the overall market adjustment, more than 2,200 stocks closed higher, with 44 stocks hitting the daily limit up [1] Sector Performance - The dairy, duty-free shops, and prepared dishes sectors led the market's rise, while sectors related to national big fund holdings, packaging optics, and lithography machines saw significant declines [1] Institutional Ratings - A total of 174 buy ratings were issued by institutions, covering 160 stocks. Great Wall Motors became a market focus, receiving three buy ratings from institutions. Among the stocks with buy ratings, 64 records provided explicit target prices, with 43 stocks showing an upside potential exceeding 20% [1] High Upside Potential Stocks - ZTE Corporation has the highest upside potential, with a target price of 67.37 yuan per share, indicating a potential increase of 64.96%. Other stocks with significant upside include AVIC Optoelectronics and BYD, with potential increases of 63.44% and 54.81%, respectively [1] Industry Preferences - The power equipment industry is favored by institutions, with stocks like EVE Energy and Tianci Materials among 15 stocks receiving buy ratings. The automotive and machinery equipment industries also attracted institutional attention, with 14 and 12 stocks, respectively, receiving buy ratings [1] Northbound Capital Inflows - New Yi Sheng and Tianfu Communication received significant attention from both institutions and northbound capital. They ranked first and second in net buying amounts, with 4.01 billion yuan and 2.82 billion yuan, respectively [4] Company Announcements - BYD announced its global presence in over 112 countries and regions, leading in several overseas new energy vehicle markets. Seven of its eight roll-on/roll-off ships are now operational. Additionally, Seiyun Circuit reported mass production of its AI glasses for major overseas clients and several technological breakthroughs in the AI server field [7]

Summary of ZTE Corp (763 HK) Conference Call Company Overview - **Company**: ZTE Corp (763 HK) - **Sector**: Telecommunications - **Current Price**: HKD 36.22 (as of September 1, 2025) - **Target Price**: HKD 39.00, implying a 7.7% upside [4][22] Key Financial Highlights - **2Q25 Results**: - Revenue growth accelerated to **21% y-y** (1Q25: +7.8% y-y) - Earnings declined by **13% y-y** (1Q25: -10.5% y-y) [1][14] - **Revenue Breakdown**: - Carrier network revenue declined by **6% y-y** in 1H25 - Enterprise segment revenue grew by **110% y-y**, driven by AI server shipments [1][2] - **Gross Profit Margin (GPM)**: - GPM declined by **8.0pp y-y to 32.5%** in 1H25 and **8.1pp y-y to 30.9%** in 2Q25 [1][14] - **Cost Control**: - R&D expenses decreased by **2.7% y-y** in 1H25 and **2.5% y-y** in 2Q24, partially offsetting GPM decline [1] Revenue and Earnings Forecasts - **Revised Revenue Forecasts**: - FY25F-27F revenue forecasts raised by **8.5-10.0%** due to stronger AI server demand [1][13] - **Earnings Adjustments**: - FY25F-27F earnings forecasts cut by **4-21%** due to margin dilution [1][13] - **Future Revenue Contribution**: - Enterprise/government segment expected to contribute **34% of total revenue by 2027F** with a **43% revenue CAGR** from FY24-27F [2] Market Dynamics - **Carrier Business Challenges**: - Continued downcycle in 5G infrastructure spending in China impacting growth [2][18] - **AI Server Demand**: - Strong demand driven by accelerated AI investments from domestic tech players [2] Valuation and Risks - **Valuation Methodology**: - Target price based on **19x FY26F EPS of CNY1.88**, aligned with FY25-27F earnings CAGR [11][18] - **Risks**: - **Downside Risks**: Slower-than-expected 5G spending, US-China trade tensions - **Upside Risks**: Faster recovery in telecom demand, better margin improvements in enterprise and consumer segments [11][18] Additional Insights - **Cash Flow and Debt**: - Ending cash projected to increase from **CNY 43.9 billion in FY24** to **CNY 566.6 billion in FY27** [10] - Net debt/equity ratio expected to rise to **30.9% by FY27** [10] - **Market Capitalization**: Approximately **USD 19.45 billion** [4][8] Conclusion ZTE Corp is navigating a challenging telecom environment with a strong focus on AI server growth. Despite margin pressures, the company is expected to benefit from increased demand in the enterprise segment, leading to revised revenue forecasts. The stock maintains a Neutral rating with a target price reflecting potential upside.

Group 1 - UBS maintains a "Buy" rating for Innovent Biologics, raising the target price to HKD 137.4, citing the promising product line and significant global R&D potential for IBI363 [1] - CMB (Hong Kong) maintains a "Buy" rating for China Life, increasing the target price to HKD 29, with a projected 7% YoY net profit growth in H1 2025 and a 20.3% increase in new business value [1] - CMB (Hong Kong) maintains a "Buy" rating for ZTE Corporation, raising the target price to HKD 42, with a 15% YoY revenue growth expected in H1 2025, driven by strong enterprise business performance [2] Group 2 - DBS reaffirms a "Buy" rating for China Merchants Bank, lowering the target price to HKD 53.5, with a projected CAGR of 2.5% for earnings from 2025 to 2027 [3] - Huatai Securities maintains a "Buy" rating for Li Auto, reducing the H-share target price to HKD 105.43, optimistic about the sales performance of the new i6 model [4] - CMB (Hong Kong) maintains an "Outperform" rating for Cha Bai Dao, with a target price of HKD 12, reporting a 4.3% YoY revenue growth and a 37.5% increase in net profit for H1 2025 [5] Group 3 - CMB (Hong Kong) maintains an "Outperform" rating for Chaoyun Group, setting a target price of HKD 3.65, with a 7.2% YoY revenue growth and a 101.4% increase in pet business revenue [6] - CMB (Hong Kong) maintains an "Outperform" rating for He Yu-B, raising the target price to HKD 20, highlighting the approval of a key clinical trial and strong financial position [7] - UBS gives a "Buy" rating to CanSino Biologics, setting a target price of HKD 224.3, anticipating updates on key data and potential collaborations [8]

Group 1 - The core viewpoint of the report is that ZTE Corporation has shown strong mid-term performance, with a revenue growth of 15%, driven by robust demand in the government and enterprise sector as well as consumer business [1] - Revenue from the government and enterprise segment increased by 110%, while consumer business revenue grew by 8% [1] - The gross margin narrowed by 8.1 percentage points year-on-year to 30.9%, attributed to a higher proportion of lower-margin server sales in the government business and an increase in AI server shipments [1] Group 2 - The report anticipates that the computing demand from domestic internet service providers will remain strong for the remainder of the year [1] - ZTE's component inventory is expected to support its continued strong growth [1] - The forecast for ZTE's government business revenue is a year-on-year increase of 104% for the current year, with a projected growth of 14% for the next year [1] Group 3 - The report indicates that while the gross margin may continue to be under pressure this year, it is believed that it will not deteriorate further [1] - The rating for ZTE Corporation is maintained at "outperform," with the target price raised from HKD 33 to HKD 40 [1]

Core Viewpoint - ZTE Corporation reported strong mid-term performance with a revenue growth of 15%, driven by robust demand in the government and enterprise sector as well as consumer business [1] Revenue Performance - Revenue from the government and enterprise business increased by 110%, while consumer business revenue grew by 8% [1] - The overall revenue growth is attributed to favorable demand in the domestic internet service provider sector [1] Profitability Metrics - Gross margin narrowed by 8.1 percentage points year-on-year to 30.9%, primarily due to a higher proportion of lower-margin server sales in the government business and an increase in AI server shipments [1] Future Outlook - The company is expected to maintain strong growth in the remaining part of the year, with a forecasted annual revenue growth of 104% for the government business and 14% for the following year [1] - Although gross margin may continue to be under pressure throughout the year, it is believed that further deterioration is unlikely [1] Analyst Rating - The firm maintains a "Outperform" rating for ZTE Corporation, raising the target price from HKD 33 to HKD 40 [1]

Investment Rating - The investment rating for the company is "Buy" with a target of outperforming the industry index by over 15% in the next six months [5][18]. Core Views - The company is fully committed to AI, which has driven stable revenue growth in the first half of 2025. The revenue for the first half of 2025 reached 71.553 billion yuan, a year-on-year increase of 14.51%, while the net profit attributable to shareholders was 5.058 billion yuan, a decrease of 11.77% [2][4]. - The company is focusing on expanding its capabilities in the AI and computing infrastructure sectors, which has led to significant growth in its second curve revenue, particularly in server and storage products, which saw a year-on-year increase of over 200% [2][3]. Financial Summary - Revenue projections for the company are as follows: 2023A at 124.251 billion yuan, 2024A at 121.299 billion yuan, 2025E at 137.068 billion yuan, 2026E at 150.774 billion yuan, and 2027E at 165.098 billion yuan, with growth rates of 1.1%, -2.4%, 13.0%, 10.0%, and 9.5% respectively [1][10]. - The net profit attributable to shareholders is projected to be 9.326 billion yuan in 2023A, 8.425 billion yuan in 2024A, 8.561 billion yuan in 2025E, 9.208 billion yuan in 2026E, and 9.987 billion yuan in 2027E, with growth rates of 15.4%, -9.7%, 1.6%, 7.6%, and 8.5% respectively [1][10]. - The company's return on equity (ROE) is expected to decline slightly from 13.5% in 2023A to 10.7% in 2027E [1][10]. Business Strategy - The company is enhancing its product technology in the connectivity and computing fields, focusing on 5G core networks and AI-driven large-scale computing clusters. It has established over 450 project cases globally in data center products [3][4]. - The company has launched innovative AI terminal products in the first half of 2025, including the Nubia Z70S Ultra and Nubia Flip 2, maintaining a leading position in the mobile internet market [3].

Core Viewpoint - The company is entering a phase of accelerated revenue growth driven by AI server demand, with comprehensive AI capabilities expected to strengthen competitive power [1] Revenue and Profitability - Revenue forecasts for the company are raised due to rapid growth in AI servers, while profit estimates are slightly lowered due to structural impacts. Projected revenues for 2025-2027 are 141.3 billion, 161.9 billion, and 184.1 billion respectively, with net profits of 8.057 billion, 8.968 billion, and 10.276 billion respectively, leading to EPS of 1.68, 1.87, and 2.15 [2] - In the first half of 2025, the company reported revenue of 71.553 billion, a year-on-year increase of 14.51%, and a net profit of 5.058 billion, a year-on-year decrease of 11.77%. The gross margin was 32.45%, down 8.02 percentage points year-on-year [2] Growth in Second Growth Curve - The second growth curve, represented by computing power and terminal products, saw nearly 100% year-on-year revenue growth, with server and storage revenue increasing over 200%. AI server revenue accounted for 55% of total revenue [3] - The company won a significant share of the centralized procurement for AI general computing devices from China Mobile for 2025-2026, highlighting its competitive strength [3] AI Capabilities - The company has demonstrated outstanding AI full-stack capabilities, achieving significant breakthroughs in the computing power field with its self-developed chips and AI servers. The "Dinghai" DPU chip, "Lingyun" switch chip, and "Zhu Feng" CPU chip are notable examples [4] - The company received the Annual Major Breakthrough Achievement Award at the 2025 China Computing Power Conference for its AI supernode system, showcasing its leading chip design capabilities [4]

Group 1 - ZTE Corporation's stock price dropped by 5.01% to 41.74 CNY per share, with a trading volume of 5.618 billion CNY and a turnover rate of 3.27%, resulting in a total market capitalization of 199.665 billion CNY [1] - ZTE Corporation, established on November 11, 1997, and listed on November 18, 1997, is located in Shenzhen, Guangdong Province, and primarily engages in the investment and sale of electronic and communication equipment components [1] - The main revenue composition of ZTE Corporation includes network construction (52.13%), product sales (39.02%), service provision (8.76%), and rental income from operating leases (0.09%) [1] Group 2 - Ping An Fund has one fund heavily invested in ZTE Corporation, specifically the Guangdong-Hong Kong-Macao Greater Bay Area ETF (512970), which held 64,500 shares in the second quarter, unchanged from the previous period, accounting for 3% of the fund's net value [2] - The estimated floating loss for the fund today is approximately 141,800 CNY [2] - The Guangdong-Hong Kong-Macao Greater Bay Area ETF (512970) was established on September 23, 2019, with a latest scale of 69.8464 million CNY, and has achieved a year-to-date return of 18.41%, ranking 2330 out of 4222 in its category [2]

Group 1 - The core viewpoint of the article is the signing of a framework cooperation agreement between Kunming Municipal Government, ZTE Corporation, and Yunnan Nantian Electronics Information Industry Co., Ltd. on September 3 [1] - The cooperation will focus on areas such as digital infrastructure construction, application scenario development, and talent cultivation [1]

Core Viewpoint - The global chemical industry is undergoing profound changes, with anxiety, confusion, and hope being the real states of many companies. The rise of emerging industries in China is expected to lead the polymer sector in the next decade [2]. Group 1: Conference Overview - The 2025 Polymer Industry Annual Conference will take place from September 10 to September 12, focusing on new opportunities in materials, technologies, and equipment related to emerging industries such as AI, low-altitude economy, aerospace, and new energy vehicles [2][3]. - The conference will gather international leading companies, industry experts, government representatives, and capital from the entire industry chain to explore new opportunities [2]. Group 2: Venue and Accommodation - The conference will be held at Sheraton Hotel in Hefei, located at 1666 Tongling North Road, Hefei [5]. - Special accommodation rates are available for attendees, with some hotels already fully booked [6][7]. Group 3: Agenda Highlights - The conference will feature various forums, including a closed-door meeting on polymer industry development and project roadshows on September 10 [28]. - Keynote speeches and discussions will cover topics such as domestic polymer industry policies, global trends in new materials, and strategic insights into special polymers [16][20]. Group 4: Supporting Organizations - The conference is organized by Ningbo Detai Zhongyan Information Technology Co., Ltd. and supported by various institutions, including the Chinese Academy of Sciences and several industry associations [9][38]. Group 5: Target Audience - The conference aims to attract participants from various sectors, including eVTOL, drones, large aircraft, humanoid robots, and automotive manufacturers, all of which require engineering plastics [38].