Core Viewpoint - ZTE Corporation's stock has dropped over 7%, reflecting market concerns about its recent financial performance despite previous gains driven by AI and ASIC chip growth [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 decreased to 32.45%, down 7.99% year-on-year [1] Market Analysis - Jefferies noted that ZTE's stock had risen approximately 52% over the past three months, driven by optimism around AI and ASIC chips, but the second quarter performance fell short of expectations, indicating market over-optimism [1] - Jefferies has lowered its profit forecasts for ZTE for the next two years by 26% and 31% compared to market predictions, and downgraded its investment rating from "Hold" to "Underperform," while raising the target price to 27.27 HKD [1] Research Insights - Nomura's report highlighted ZTE's effective cost management, particularly in R&D, which partially offset the impact of declining gross margins [1] - Nomura anticipates 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] - The firm has raised its revenue forecasts for ZTE from 2025 to 2027 by 8.5% to 10%, reflecting increased demand for AI servers, but has lowered its profit forecasts for the same period by 4% to 21% due to margin dilution [1]

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]