Core Viewpoint - ZTE Corporation's stock has dropped over 7% following disappointing second-quarter earnings, despite a strong revenue growth in the first half of the year [1] Financial Performance - ZTE reported a revenue of 71.553 billion yuan for the first half of the year, representing a year-on-year increase of 14.51% [1] - The net profit for the same period was 5.058 billion yuan, showing a year-on-year decline of 11.77% [1] - The gross margin stood at 32.45%, which is a decrease of 7.99% compared to the previous year [1] Market Analysis - Jefferies noted that ZTE's stock price had increased by approximately 52% over the past three months, driven by optimism surrounding artificial intelligence and ASIC chip growth [1] - However, the second-quarter performance fell short of market expectations, indicating that the market may have been overly optimistic [1] - Jefferies has revised its net profit forecasts for ZTE downwards, predicting it to be 26% and 31% lower than market expectations for the next two years, respectively [1] Investment Rating - Jefferies downgraded its investment rating for ZTE from "Hold" to "Underperform," while raising the target price to 27.27 HKD [1] - Nomura's report highlighted that ZTE is maintaining effective cost management, particularly in R&D, which partially offsets the impact of declining gross margins [1] - Nomura expects ZTE to face continued pressure on profit margins in the second half of the year, with a gradual recovery starting next year due to better cost optimization [1] Future Projections - Nomura has increased its revenue forecasts for ZTE for the years 2025 to 2027 by 8.5% to 10%, reflecting stronger demand for AI servers [1] - However, the same report has lowered the profit forecasts for the same period by 4% to 21%, indicating concerns over margin dilution [1]

Group 1 - Major financial institutions like JPMorgan, Citigroup, and Morgan Stanley have recently increased their holdings in H-shares such as CATL, ZTE, and WuXi AppTec, indicating a growing interest in these stocks [1] - JPMorgan's long position in CATL H-shares rose from 5.98% to 6.06%, while Morgan Stanley's increased from 4.96% to 6.05% [1] - The Hong Kong stock market showed strong performance in August, with the Hang Seng Index rising by 1.23% and the Hang Seng Tech Index increasing by 4.06% [3] Group 2 - There is a concern that retail investors often enter the market after institutions have already made their moves, leading to potential losses for these investors [5] - A notable example of institutional behavior is highlighted, where foreign institutions claimed to avoid thematic stocks but were found heavily invested in restructuring concept stocks after earnings reports were released [6] - The concept of "institutional inventory" is introduced as a key indicator of institutional trading activity, suggesting that active participation by institutions can signal future stock performance [9][11] Group 3 - The article emphasizes the importance of understanding the true flow of funds rather than relying on news, which often lags behind actual market movements [14] - It is suggested that retail investors should focus on analyzing data that reveals institutional actions to avoid being misled by superficial news [14] - The conclusion stresses that those who can access and interpret real data will have a competitive advantage in the market [14]

Core Viewpoint - Goldman Sachs reports that ZTE Corporation (00763) achieved a 21% year-on-year revenue growth in Q2, reaching 39 billion RMB, exceeding both the bank's and market expectations by 8% and 12% respectively [1] Financial Performance - Net profit met expectations, but gross margin fell short of forecasts [1] - Operating profit decreased by 36% year-on-year to 1.7 billion RMB, which is 39% and 26% lower than the bank's and market predictions [1] - Non-operating profit outperformed expectations, leading to a 6% quarter-on-quarter increase in net profit to 2.6 million RMB, which is basically in line with forecasts [1] Future Outlook - The bank maintains an optimistic view on ZTE's continuous expansion in non-telecom businesses [1] - Net profit forecasts for 2025 to 2027 have been revised down by 14%, 9%, and 3% respectively, while revenue forecasts have been adjusted up by 7%, 11%, and 13% [1] - Target price has been raised by 14% to 33.5 HKD [1]

Core Viewpoint - ZTE Corporation (00763) has seen its stock price rise approximately 52% over the past three months, driven by optimism surrounding artificial intelligence and ASIC chip growth, but the second-quarter performance fell short of expectations, indicating market over-optimism [1] Financial Performance - The current net profit forecasts for ZTE for the next two years are 26% and 31% lower than market expectations, respectively [1] - The company's valuation at a 22 times price-to-earnings ratio is not attractive given the projected negative net profit growth over the next three years [1] Investment Rating - The investment rating for ZTE has been downgraded from "Hold" to "Underperform" [1] - The target price for H-shares has been adjusted from HKD 18.82 to HKD 27.27 [1] Revenue and Profitability - Growth in artificial intelligence is expected to double server revenue, but the gross margin is projected to be only 4% to 5%, leading to core operating profit and net profit falling short of expectations [1] - The telecommunications business revenue continues to decline, and decreasing gross margins have prompted a downward revision of the company's profit forecasts [1]

Core Insights - ZTE Corporation is deepening its "connection + computing power" strategy, showing significant results with a revenue of 71.55 billion yuan in the first half of 2025, a year-on-year increase of 14.5% [1] - The company is embracing AI opportunities, with revenue from computing power and terminal products growing nearly 100% year-on-year, accounting for over 35% of total revenue [1] - The recent release of the "Artificial Intelligence +" action plan aligns with ZTE's focus on comprehensive layout and technological breakthroughs in the "connection + computing power" field [1] Group 1: Computing Power Infrastructure - ZTE has developed a "distributed high-performance domestic intelligent computing resource pool" that supports various computing power acceleration hardware, contributing to multiple large-scale projects [3] - The AI Booster training platform enables efficient deployment of large models, significantly reducing migration costs [3] - ZTE's AiCube intelligent computing machine supports large models with 671 billion parameters, achieving millisecond-level responses and allowing thousands of concurrent users [5] Group 2: Green Computing Initiatives - ZTE's modular data center solution shortens construction time by 40%, supporting 850,000 5G base stations and achieving a carbon reduction of 6 million tons annually [6] - The company integrates a five-dimensional intelligent system in its manufacturing processes, exemplifying the fusion of intelligent manufacturing and green computing [6] Group 3: AI Technology Innovations - ZTE's Nebula Coder-V6 model scored 67.4 points in the SuperCLUE Chinese model evaluation, excelling in scientific reasoning and code generation [7] - The company has filed over 5,500 AI-related patents, with nearly 50% granted, establishing a strong foundation in AI technology research [7] - ZTE's AIR Net high-level intelligent solution enhances network operations, while its low-altitude comprehensive solution has completed over 100 commercial and pilot projects [7] Group 4: Industry Applications and Ecosystem - ZTE's digital star cloud 4.0 platform integrates large model technology to create benchmark projects across 18 industries, improving operational efficiency in various sectors [8][10] - The company is building a comprehensive AI ecosystem that spans industry applications and consumer terminals, promoting AI education and healthcare solutions [10][11] - ZTE's new human-computer interaction paradigm is showcased in its Nubia series terminals, enhancing user experience through AI capabilities [13] Group 5: Future Directions - ZTE's president emphasizes the company's commitment to being a leader in network connectivity and intelligent computing power, focusing on "intelligent symbiosis and digital-physical integration" [15] - The company aims to drive AI technology from laboratory settings to industrial applications, contributing to the high-quality development of China's AI industry [15]

Core Viewpoint - UBS reports that artificial intelligence will become a second growth curve for ZTE Corporation (00763), as telecom operators shift capital expenditures towards AI computing infrastructure, while ZTE's market share continues to rise [1] Group 1: Financial Performance - ZTE's revenue in Q2 this year increased by nearly 21% year-on-year, exceeding market expectations by 12%, primarily driven by strong sales of server products due to AI demand [1] - The company predicts that government and enterprise revenue will double this year, estimating that server products will contribute approximately 20% to net profit by 2026 [1] Group 2: Profitability Metrics - During the same period, ZTE's gross profit and net profit decreased by 4.1% and 12.9% respectively, falling short of market expectations by 2% to 3%, attributed to a shift in revenue mix towards server products leading to lower gross margins [1] Group 3: Target Price and Rating - UBS raised ZTE's target price from HKD 26.45 to HKD 37.7, based on higher profit growth projections for 2026 and beyond, while maintaining a "Neutral" rating [1]

高盛发布研报称，中兴通讯(00763)第二季收入同比增长21%至390亿元人民币，较该行及市场预期高出 8%及12%，净利润符合预期，但毛利率逊预期。经营溢利同比跌36%至17亿元人民币，较该行及市场预 测低39%及26%。惟非经营溢利表现胜预期，令第二季净利润按季升6%至260万元人民币，基本符合预 期。该行对中兴通讯在非电信业务的持续扩张持乐观态度，对其维持"中性"评级，并对其2025至2027年 净利润预测下调14%、9%和3%，收入预测上调7%、11%和13%，目标价升14%至33.5港元。 来源：智通财经网 ...

智通财经APP获悉，富瑞发布研报称，中兴通讯(00763)过去三个月股价累升约52%，受人工智能及 ASIC芯片增长憧憬，但第二季业绩逊预期显示市场过度乐观。该行称，目前其对中兴今明两年净利润 预测较市场预测低出分别26%及31%，22倍市盈率估值对比未来三年净利润负增长并不吸引，投资评级 由"持有"降至"跑输大市"，H股目标价由18.82港元上调至27.27港元。 该行指，人工智能增长可从服务 器收入增长达两倍见到，但毛利率或为4%至5%，因此收入胜预期下核心经营溢利及净利润逊预期。公 司可能在美国制裁或面临制裁风险下，从竞争对手取得服务器客户，电讯业务收入持续下跌，毛利率下 降推动该行下调对公司盈利预测。 该信息由智通财经网提供 ...

Market Overview - The Shanghai Composite Index rose by 0.46% on September 1, with 24 out of 28 sectors experiencing gains, led by the communication and comprehensive sectors, which increased by 5.22% and 4.27% respectively [2] - The non-bank financial and banking sectors saw declines of 1.28% and 1.03% respectively [2] Capital Flow Analysis - The net outflow of capital from the two markets reached 51.3 billion yuan, with 8 sectors experiencing net inflows [2] - The pharmaceutical and biological sector had the highest net inflow of 3.475 billion yuan, followed by the communication sector with a net inflow of 1.291 billion yuan [2] Communication Sector Performance - The communication sector increased by 5.22%, with a net inflow of 1.291 billion yuan, and 79 out of 125 stocks in this sector rose, including 3 hitting the daily limit [3] - The top three stocks with the highest net inflow were Hengbao Co., Ltd. (1.495 billion yuan), ZTE Corporation (1.259 billion yuan), and Zhongji Xuchuang (543 million yuan) [3] Communication Sector Capital Inflow - Key stocks in the communication sector with significant capital inflow included: - Hengbao Co., Ltd. with a 10.00% increase and a turnover rate of 29.11% [4] - ZTE Corporation with a 5.63% increase and a turnover rate of 8.02% [4] - Zhongji Xuchuang with a 14.42% increase and a turnover rate of 5.42% [4] Communication Sector Capital Outflow - Major stocks with significant capital outflow included: - Xinyi Sheng with a 9.07% increase but a net outflow of 504.2 million yuan [5] - Sanwei Communication with a 10.03% increase but a net outflow of 375.3 million yuan [5] - Taicheng Light with a 1.76% increase but a net outflow of 268.9 million yuan [5]

Volatility - A total of 8 stocks in the A-share market experienced a volatility exceeding 20% today, with Rongyi Precision, Hongyu Packaging, and Kaiteng Precision leading the list [1] Turnover Rate - There were 14 stocks in the A-share market with a turnover rate exceeding 30% today, with Sanwei Communication, Beifang Changlong, and Haoen Automotive Electric at the forefront [1] Main Capital Flow - Main capital today saw a net inflow into sectors such as telecommunications, pharmaceuticals and biology, real estate, oil and petrochemicals, and textiles and apparel, while there was a net outflow from sectors including computers, power equipment, automobiles, electronics, and non-bank financials [1] - The stocks with the highest net inflow of main capital included Liou Co., Hengbao Co., ZTE Corporation, Dongshan Precision, and Shanzigaoke, with net inflows of 1.851 billion, 1.386 billion, 1.193 billion, 788 million, and 766 million respectively [1] - The stocks with the highest net outflow of main capital included Dongfang Caifu, BYD, China Rare Earth, Jinli Permanent Magnet, and Tongfu Microelectronics, with net outflows of 2.169 billion, 1.723 billion, 1.412 billion, 1.115 billion, and 1.083 billion respectively [1]