Investment Rating - The report maintains an "Accumulate-A" rating for ZTE Corporation (000063.SZ) [1] Core Views - ZTE is accelerating the expansion of its second curve businesses, such as computing power and mobile phones, while maintaining stable operational progress [1][3] - The company reported a revenue of 62.49 billion yuan for the first half of 2024, a year-on-year increase of 2.94%, with a net profit of 5.73 billion yuan, up 4.76% year-on-year [1][3] Financial Performance - For H1 2024, revenue from the operator, government enterprise, and consumer segments was 37.30 billion, 9.17 billion, and 16.02 billion yuan, respectively, showing year-on-year changes of -8.61%, +56.09%, and +14.28% [1] - The gross margin and net margin for H1 2024 were 40.47% and 9.14%, respectively, with year-on-year changes of -2.75 and +0.26 percentage points [1] - The company achieved a revenue of 31.91 billion yuan in Q2 2024, reflecting a year-on-year increase of 1.10% and a quarter-on-quarter increase of 4.4% [1] Business Segments - The traditional operator network business faced pressure due to reduced capex from domestic operators, with a revenue of 37.30 billion yuan in H1 2024, down 8.6% year-on-year [1] - The enterprise business saw rapid growth, with revenue reaching 9.20 billion yuan in H1 2024, driven by AI computing power expansion [3] - The consumer business, particularly mobile phones, is recovering, with innovative products targeting young consumers [3] Future Outlook - The company expects net profits of 10.52 billion, 11.24 billion, and 12.13 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 12.8%, 6.9%, and 7.9% [3][4] - The report anticipates an EPS of 2.20, 2.35, and 2.54 yuan for the same years, with corresponding P/E ratios of 12.3, 11.5, and 10.6 [3][4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The company reported a revenue of 62.487 billion yuan for the first half of 2024, representing a year-on-year growth of 2.94%. The net profit attributable to shareholders was 5.732 billion yuan, up 4.76% year-on-year, while the net profit excluding non-recurring items was 4.964 billion yuan, growing by 1.11% year-on-year. The net cash flow from operating activities reached 7 billion yuan, an increase of 8.94% year-on-year. The net profit margin improved to 9.14%, up 0.26 percentage points year-on-year, indicating a continuous enhancement in profitability [11][12] - The company's enterprise business experienced rapid growth, with revenue from this segment reaching 9.172 billion yuan, a significant increase of 56.09% year-on-year, primarily driven by a surge in server and storage product shipments. The gross margin for the enterprise business was 21.77%, down 5.74 percentage points year-on-year due to changes in revenue structure [11][12] - The international market achieved double-digit growth, with revenue increasing by 10.44% year-on-year, accounting for 31.09% of total revenue. Notably, revenue from the Asian market (excluding China) grew by 22.76% year-on-year, with a gross margin of 36.02%, up 2.64 percentage points year-on-year [11][12] Financial Performance Summary - For the first half of 2024, the company's gross margin was 40.47%, down 2.75 percentage points year-on-year, influenced by changes in the revenue mix. The company expects revenue for 2024-2026 to be 130.263 billion yuan, 137.894 billion yuan, and 146.786 billion yuan, with year-on-year growth rates of 4.84%, 5.86%, and 6.45% respectively. The net profit attributable to shareholders is projected to be 9.855 billion yuan, 10.355 billion yuan, and 10.907 billion yuan for the same period, with growth rates of 5.67%, 5.08%, and 5.33% respectively [11][12][14]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][6]. Core Insights - The company has shown steady performance with both revenue and net profit growth. In H1 2024, domestic network business faced pressure due to the overall investment environment, while international business continued to grow at double digits. The company is expanding its enterprise and consumer business, achieving significant revenue growth of 56.1% and 14.3% respectively [4][6]. - The company is actively innovating in the connectivity sector, with 5G-A expected to contribute to new growth. It ranks second globally in the shipment of 5G base stations and core networks, and has launched various innovative technologies in collaboration with operators [4][6]. - The company is transitioning towards a "connection + computing power" model, enhancing its market space by focusing on AI computing power and related products. It has maintained a leading position in the domestic operator market for servers and storage [4][6]. Financial Performance Summary - Revenue (in million CNY) is projected to grow from 124,251 in 2023A to 172,307 in 2026E, with a CAGR of approximately 11% [2][7]. - Net profit (in million CNY) is expected to increase from 9,326 in 2023A to 14,423 in 2026E, reflecting a growth rate of 17% in 2026E [2][7]. - Earnings per share (EPS) is forecasted to rise from 1.95 in 2024E to 3.02 in 2026E [2][6]. Business Strategy and Market Position - The company is positioned as a leader in the ICT sector, actively adapting to the digital economy by expanding into IT and innovative second-line businesses. It emphasizes cost control and improving profitability [5][6]. - The company has a strong focus on R&D, with R&D expenses accounting for 20.4% of revenue in H1 2024, and holds over 90,000 global patent applications, including around 5,000 in AI [4][6].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][6] Core Views - The company has shown steady performance with revenue and net profit growth. In H1 2024, domestic network business faced pressure due to the overall investment environment, while international business continued to grow at double-digit rates. The company has successfully expanded its enterprise and consumer business, achieving revenue growth of 56.1% and 14.3% respectively [4][5] - The company is actively innovating in the connectivity field, with 5G-A expected to contribute to new growth. It ranks second globally in the shipment of 5G base stations and core networks, and has launched several innovative products in collaboration with major operators [4][6] - The company is transitioning towards a "connection + computing power" model, enhancing its market space by focusing on AI computing power and related products. It has maintained a leading position in the domestic operator market for servers and storage [4][6] Financial Performance Summary - Revenue (in million CNY) is projected to grow from 124,251 in 2023A to 172,307 in 2026E, with a CAGR of approximately 11% [2][7] - Net profit (in million CNY) is expected to increase from 9,326 in 2023A to 14,423 in 2026E, reflecting a growth rate of 17% in 2026E [2][6] - Earnings per share (EPS) is forecasted to rise from 1.95 in 2024E to 3.02 in 2026E [2][6] Cost Management and Profitability - The company has effectively controlled costs, with a decrease in sales, management, R&D, and financial expense ratios in Q2 2024 compared to the previous year. The net profit margin improved to 9.14%, while the gross margin was 40.47% [4][6] - R&D expenses accounted for 20.4% of revenue, with over 90,000 global patent applications, including around 5,000 in the AI field [4][6] Market Position and Future Outlook - The company is positioned as a leader in the domestic ICT sector, actively expanding into IT and innovative second-line businesses. The forecasted net profits for 2024-2026 are 106.45 billion CNY, 122.92 billion CNY, and 144.23 billion CNY respectively [5][6] - The company is expected to benefit from the ongoing digital transformation and the increasing demand for AI-related products and services [4][5]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [7]. Core Insights - The company achieved a revenue of 62.49 billion yuan in the first half of 2024, representing a year-on-year growth of 2.9%. The net profit attributable to shareholders was 5.73 billion yuan, up 4.8% year-on-year [1][2]. - The company continues to focus on the "Connection + Computing Power" strategy, showing resilience in a challenging global economic environment [2][4]. - The operator network business saw a revenue decline of 8.61% year-on-year, while the enterprise business grew significantly by 56.09% due to increased demand for servers and storage [2][3]. Financial Performance - The gross margin for the first half of 2024 was 40.47%, a decrease of 2.75 percentage points year-on-year, primarily due to changes in product mix and a decline in the share of high-margin operator business [3]. - The company effectively managed expenses, with sales, management, and R&D costs all decreasing year-on-year, contributing to improved profitability [3]. - The company expects to achieve net profits of 10.3 billion, 11.4 billion, and 12.5 billion yuan for the years 2024, 2025, and 2026, respectively, with corresponding valuations of 12, 11, and 10 times [5]. Market Opportunities - The company is actively embracing AI and enhancing its data center offerings, positioning itself to capture opportunities in the digital economy [4]. - The global market for the company's products has seen a year-on-year growth of over 50%, particularly in the Philippines and Indonesia [4]. - The company is investing over 20 billion yuan annually in R&D, which strengthens its capabilities in providing comprehensive solutions and self-developed chips [4].

Investment Rating - The report maintains a "BUY" rating for ZTE, with an adjusted target price of RMB32.86, reflecting a potential upside of 26.2% from the current price of RMB26.04 [2][3]. Core Insights - ZTE reported mixed results for 1H24, with revenue increasing by 2.9% YoY to RMB62.5 billion and net profit growing by 4.8% YoY to RMB5.7 billion. The carrier business faced challenges due to declining capex from domestic telecom companies, while non-carrier segments showed strong growth [2][3]. - The carrier segment's revenue fell by 8.6% YoY to RMB37.3 billion, primarily due to reduced spending from domestic telecoms as the 5G network build-out reached significant milestones. However, the gross profit margin (GPM) for the carrier segment remained robust at 54.3% [2][3]. - Non-carrier businesses, particularly in consumer and government/enterprise segments, experienced double-digit growth, with increases of 14.3% and 56.1% YoY, respectively. This growth was driven by strong demand in the FTTR market and recovering consumer electronics demand [2][3]. Financial Summary - For FY24E, revenue is projected at RMB130.034 billion, reflecting a 4.7% YoY growth, while net profit is expected to reach RMB10.478 billion, a 12.4% increase YoY. The gross margin is anticipated to be 39.8% [3][6]. - The report revises down revenue forecasts by 3% for FY24 and 2% for FY25 due to ongoing headwinds in the domestic telecom market, particularly in the RAN business. Net profit forecasts were also trimmed by 3% for FY24 and 7% for FY25, although this was partially offset by improved operating efficiency [2][6]. - The earnings summary indicates a stable GPM of 40.5% in 1H24, compared to 41.5% in FY23, while the net profit margin (NPM) improved to 9.4% in 2Q24 [2][3][6].

19 Aug 2024 CMB 国际全球市场 | 股票研究 | 公司更新 中兴通讯 (000063 CH) 混合 1H24 结果 中兴通讯宣布了2024年半年度结果。收入较上年同期增长2.9%，至人民币625亿元，净利润 则增长4.8%，至57亿元。尽管国内电信运营商对中兴通讯的电信业务面临资本支出下滑的逆 风，但非电信业务实现了两位数的增长（消费者和政府/企业部门分别同比增长14.3%和 56.1%）。按季度来看，第二季度的收入较上年同期增长1.1% / 季比增长4.4%，净利润增长 5.7% / 季比增长9.1%。毛利率环比下降至39%，主要由于不利的产品组合（即高利润率的电 信部门贡献减少）。运营成本优化使得2024年第二季度的净利润率环比改善至9.4%（相比第 一季度和2023财年的9% / 7.5%）。展望未来，我们认为非电信业务将维持两位数的增长，这 将抵消电信业务的疲软。该股目前市盈率为 11.9 倍 2024E ， 维持买入 ， 调整后 TP 为 32.86 元。 在面对国内电信公司对资本支出的严格控制以及中国5G网络建设已取得显著进展的背景 下，运营商部门面临逆风。预计到2024年，中国电信 ...

中兴通讯（000063.SZ）2024 年半年报点评 Q2 业绩稳健，政企业务实现快速增长 2024 年 08 月 19 日 ➢ 事件：2024 年 8 月 16 日，公司发布半年报，1H24 实现收入 624.9 亿元， 同比增长 2.9%；归母净利润 57.3 亿元，同比增长 4.8%；扣非净利润 49.6 亿 元，同比增长 1.1%。单季度看，2Q24 实现收入 319.1 亿元，同比增长 1.1%， 环比增长 4.4%；归母净利润 29.9 亿元，同比增长 5.7%，环比增长 9.1%；扣非 净利润实现 23.1 亿元，同比下降 5.7%，环比下降 12.6%。 ➢ 业绩稳健增长，政企业务实现快速增长。 24H1 公司 1）运营商网络营业收入 373 亿元，同比减少 8.6%，主要受国内整 体投资环境影响增长承压；毛利率为 54.3%，同比上升 0.1pct。在传统运营商网 络领域，公司保持无线、有线核心产品的领先地位。在运营商算力网络领域，服 务器及存储产品，公司在国内运营商中保持领先地位。公司在中国移动 PC 服务 器集采项目中以第一名中标，同时加大了对智能计算服务器的研发投入，力求实 现突破。此 ...

Investment Rating - The investment rating for the company is "Outperform the Market" [3][10]. Core Views - The company has shown steady growth in its operating performance for the first half of 2024, with revenue reaching 62.49 billion yuan, a year-on-year increase of 2.9%, and a net profit attributable to shareholders of 5.73 billion yuan, up 4.8% year-on-year [4][10]. - The company is focusing on expanding its capabilities in the enterprise and consumer sectors, as revenue from operator networks has faced pressure, decreasing by 8.6% year-on-year [6][10]. - The company continues to implement its "Connection + Computing Power" strategy, enhancing its research and development in computing power products and solutions [6][10]. Financial Performance Summary - For the first half of 2024, the company achieved operating revenue of 62.49 billion yuan, with a net profit of 5.73 billion yuan and a basic earnings per share of 1.20 yuan [4][10]. - In Q2 2024, the company reported operating revenue of 31.91 billion yuan, a 1.1% increase year-on-year, and a net profit of 2.99 billion yuan, up 5.7% year-on-year [5][10]. - The company’s gross margin for the first half of 2024 was 40.5%, a decrease of 2.75 percentage points year-on-year, attributed to changes in revenue structure [8][10]. Business Segment Performance - Revenue from operator networks was 37.3 billion yuan, down 8.6% year-on-year, while enterprise business revenue surged by 56.1% to 9.17 billion yuan, driven by growth in server and storage sales [6][10]. - Consumer business revenue reached 16.02 billion yuan, a 14.3% increase year-on-year, benefiting from growth in home terminals and mobile phone products [6][10]. - The domestic market generated 43.06 billion yuan in revenue, remaining stable year-on-year, while international market revenue increased by 10.4% to 19.43 billion yuan [6][10]. Future Outlook - The company is expected to accelerate its expansion into computing power, with revenue forecasts for 2024-2026 projected at 127.9 billion yuan, 131.5 billion yuan, and 135.7 billion yuan respectively [10][12]. - The net profit forecasts for the same period are 10.23 billion yuan, 11.05 billion yuan, and 11.52 billion yuan respectively, with corresponding price-to-earnings ratios for H shares at 7, 6, and 6 times, and for A shares at 12, 11, and 11 times [10][12].

通信/通信设备 加大智算产品布局，第二曲线业务快速增长 中兴通讯（000063.SZ） 2024 年 08 月 18 日 ——公司信息更新报告 投资评级：买入（维持） 蒋颖（分析师） jiangying@kysec.cn 证书编号：S0790523120003 | --- | --- | |--------------------|-------------| | 日期 | 2024/8/16 | | 当前股价(元) | 26.04 | | 一年最高最低(元) | 36.50/20.89 | | 总市值(亿元) | 1,245.56 | | 流通市值(亿元) | 1,048.65 | | 总股本(亿股) | 47.83 | | 流通股本(亿股) | 40.27 | | 近 3 个月换手率(%) | 103.13 | 股价走势图 中兴通讯 沪深300 -40% -30% -20% -10% 0% 10% 2023-08 2023-12 2024-04 数据来源：聚源 相关研究报告 《深度参与 5G-A 多个场景，持续拥抱 AI 浪 潮 — 公 司 信 息 更 新 报 告 》 -2024.4.26 业绩持续增长， ...