Xin Lang Cai Jing·2025-09-04 07:17Group 1 - The core viewpoint of the report is that ZTE Corporation has shown strong mid-term performance, with a revenue growth of 15%, driven by robust demand in the government and enterprise sector as well as consumer business [1] - Revenue from the government and enterprise segment increased by 110%, while consumer business revenue grew by 8% [1] - The gross margin narrowed by 8.1 percentage points year-on-year to 30.9%, attributed to a higher proportion of lower-margin server sales in the government business and an increase in AI server shipments [1] Group 2 - The report anticipates that the computing demand from domestic internet service providers will remain strong for the remainder of the year [1] - ZTE's component inventory is expected to support its continued strong growth [1] - The forecast for ZTE's government business revenue is a year-on-year increase of 104% for the current year, with a projected growth of 14% for the next year [1] Group 3 - The report indicates that while the gross margin may continue to be under pressure this year, it is believed that it will not deteriorate further [1] - The rating for ZTE Corporation is maintained at "outperform," with the target price raised from HKD 33 to HKD 40 [1]