Zheng Quan Shi Bao Wang·2025-03-31 00:14Core Viewpoint - In 2024, ZTE Corporation (000063) experienced a slight decline in revenue and net profit due to a decrease in overall investment from domestic operators, but the management expressed strong confidence in future growth driven by AI opportunities, aiming to return to a growth trajectory by 2025 [1][9]. Group 1: AI Development Opportunities - The global market is entering an AI-driven industrial revolution, with expectations for the AI market to exceed $860 billion in the next five years, achieving a compound annual growth rate of 32.19% [2]. - Domestic operators are projected to maintain over 20% growth in computing power investment by 2025, while leading internet companies are expected to invest over 500 billion yuan in AI over the next three years [2]. - ZTE is focusing on three main areas related to AI: building AI-native ICT infrastructure solutions, empowering AI application proliferation, and enhancing AI applications for personal and home use [2][3]. Group 2: Revenue Growth Strategies - ZTE aims to leverage AI opportunities across four dimensions: communication infrastructure, computing power infrastructure, industry applications, and AI edge applications, while consolidating its domestic operator base and increasing market share among overseas operators [3]. - The company plans to enhance the competitiveness of its computing power infrastructure products by utilizing its core ICT technologies and software-hardware development capabilities [4]. - ZTE has launched a full range of products in servers, storage, switches, data centers, and training platforms to meet the needs of large data centers and edge data centers [4]. Group 3: Market Expansion and Product Strategy - ZTE's management revealed that the sales of related products have significantly increased compared to the same period last year, capitalizing on the rapid growth of AI [4]. - The company will deepen its collaboration with leading internet companies and operators to expand its computing power product layout, focusing on the domestic internet market as a strategic area [4]. - To enhance server gross margins, ZTE will implement strategies such as increasing revenue scale, optimizing supply chain management, and collaborating with domestic AI chip companies [5]. Group 4: Second Growth Curve - In 2024, ZTE's traditional operator network business revenue declined, but its government and enterprise business revenue grew by 36.7%, with domestic government enterprise revenue increasing by nearly 60% [6]. - The second growth curve is becoming a new driver for ZTE's performance, with strategies focusing on AI-related changes and opportunities [7]. - ZTE plans to explore new business models and technological iterations while enhancing its market share and brand influence in the international operator market [7]. Group 5: Consumer Business Strategy - ZTE's consumer business strategy, centered around "AI for All," aims to create a smart ecosystem covering personal, family, and automotive scenarios, driving continuous revenue growth [8]. - The company expects its terminal revenue to continue growing rapidly in 2025 [9].