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]

Investment Rating - The report maintains a "Buy" rating for several key companies in the telecommunications and AI computing sectors, including ZTE Corporation, Zhongji Xuchuang, Xinyi Sheng, StarNet Ruijie, Runze Technology, and China Mobile [9][48]. Core Insights - The report highlights a significant increase in capital expenditures (CapEx) among major domestic internet companies (BAT: Baidu, Alibaba, Tencent) in Q2 2025, with a total CapEx of 615.36 billion yuan, representing a year-on-year growth of 170.1% and a quarter-on-quarter increase of 13.2% [2][12][13]. - Alibaba's CapEx in Q2 2025 reached 386.29 billion yuan, a remarkable year-on-year increase of 224%, indicating a strong commitment to AI and cloud infrastructure investments [2][14]. - The report suggests that the growth in CapEx marks a turning point for domestic internet companies, with expectations for continued high growth in the second half of the year, particularly in the domestic computing power supply chain [2][17]. Summary by Sections Market Overview - The telecommunications index rose by 12.38% last week, while the Shanghai Composite Index and Shenzhen Component Index increased by 0.84% and 4.36%, respectively [12][28]. Key Companies and Dynamics - The report recommends focusing on companies involved in the AI computing power chain, including ZTE Corporation, Zhongji Xuchuang, and Xinyi Sheng, as well as core asset value reassessment for China Mobile and China Telecom [3][9]. - Alibaba's cloud revenue grew by 26% year-on-year, with AI-related products contributing over 20% to this growth [2][14]. Investment Opportunities - The report identifies potential investment opportunities in the domestic computing power supply chain, including sectors such as AIDC, switches, optical modules, and liquid cooling [2][17]. - The anticipated release of domestic GPUs is expected to catalyze further growth in the computing power supply chain [2][14]. Company Performance - ZTE Corporation reported a revenue of 715.53 billion yuan in the first half of 2025, with a year-on-year increase of 14.51%, while Zhongji Xuchuang's revenue grew by 37% to 147.89 billion yuan in the same period [49][51]. - New Yi Sheng's revenue surged by 283% to 104.37 billion yuan in the first half of 2025, driven by high demand for 400G and 800G optical modules [52]. Future Outlook - The report anticipates that the capital expenditure growth among internet companies will continue to benefit the domestic computing power supply chain, with a focus on AI and cloud infrastructure [2][17]. - The overall sentiment remains optimistic regarding the telecommunications and AI sectors, with expectations for sustained growth driven by technological advancements and increased demand [2][14].

Core Viewpoint - The monthly investment strategies from various brokerages have been released, highlighting over 200 recommended stocks amid a backdrop of moderate economic recovery and ongoing policy support in the A-share market as of September 2025 [1] Group 1: Recommended Stocks - Northeast Securities recommends stocks including China Gold International, Shandong Gold, and Longbai Group among others [2] - Dongwu Securities lists stocks such as Maiwei Biotech-U, Leisai Intelligent, and Luzhou Laojiao [2] - Dongxing Securities includes China Shenhua, Kingsoft Office, and Guizhou Moutai in its recommendations [2] - Guotai Junan highlights stocks like CITIC Securities, Haier Smart Home, and Huatai Securities [2] - Multiple brokerages have jointly recommended ZTE Corporation, which benefits from the ongoing 5G infrastructure development [4] Group 2: Industry Focus - The technology manufacturing, gold, new energy, and biomedicine sectors are the primary focus areas for institutional investors [5] - The gold sector has seen multiple recommendations, reflecting institutions' emphasis on global economic uncertainties and risk aversion [5] - Companies like New Yisheng and Huafeng Measurement Control are noted for their strong performance and industry advantages [5] Group 3: Market Outlook - Brokerages predict a continuation of a "slow bull" market in September, driven by the influx of incremental capital [6] - Citic Securities emphasizes the potential impact of the Federal Reserve's possible interest rate cuts on resource commodities, particularly precious metals [7] - The upcoming product launches from Apple and META are expected to stimulate trends in consumer electronics, particularly in the supply chain [7]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a potential upside of 15% to 35% [7][11]. Core Insights - The company reported a revenue of 71.55 billion RMB for the first half of 2025, a year-on-year increase of 14.5%, but a net profit of 5.06 billion RMB, down 11.8% year-on-year [7]. - The decline in net profit is attributed to a continuous decrease in capital expenditure from telecom operators, which aligns with market expectations [7]. - The company's enterprise business, driven by AI server-related growth, saw a significant revenue increase of 110% year-on-year, reaching 19.25 billion RMB [9]. - The gross margin decreased to 32.45%, down 8.02 percentage points year-on-year, primarily due to the lower margins from server and storage businesses compared to traditional telecom operations [9]. Summary by Sections Company Overview - The company operates in the telecommunications industry, with a current A-share price of 45.44 RMB and a market capitalization of 183 billion RMB [2]. Financial Performance - For Q2 2025, the company achieved a revenue of 38.58 billion RMB, a 20.9% increase year-on-year, but a net profit of 2.6 billion RMB, down 12.9% year-on-year [7]. - The company’s earnings per share (EPS) for 2025 is projected to be 1.84 RMB, with a net profit forecast of 8.78 billion RMB [8]. Business Segments - The revenue breakdown shows that the operator network contributes 49% to total revenue, while the enterprise business accounts for 26.91%, and consumer business for 24.09% [3]. - The enterprise business's growth is significantly driven by the demand for AI servers, which now represent 55% of the segment's revenue [9]. Market Position and Future Outlook - The company is positioned to benefit from the growing AI market, with a complete ecosystem of AI products and self-developed chips [9]. - The report anticipates that the company will achieve net profits of 8.78 billion RMB in 2025, 9.26 billion RMB in 2026, and 9.94 billion RMB in 2027, reflecting a steady growth trajectory [9].