Zhi Tong Cai Jing·2025-09-30 05:53Core Viewpoint - Huayuan Securities has initiated coverage on ZTE Corporation (00763), recognizing it as the fourth largest telecommunications equipment supplier globally, with a stable operator network business and a promising second growth curve from computing and terminal businesses, assigning a "Buy" rating [1] Business Segments - Connection Business: The operator network business remains stable, achieving a gross margin of 52.94% in H1 2025, serving as a significant cash flow source. The company is proactively advancing 5G-A technology and promoting the deployment of 400G optical networks [2] - Computing Business: The emergence of AI large models has generated substantial demand for computing power. The company is seizing this opportunity by expanding its computing infrastructure-related business, which includes servers, storage, switches, and data center products. In H1 2025, revenue from the government and enterprise sector doubled, making it a core growth driver for the company [2] - Terminal Business: The company adheres to the "AI for All" philosophy, continuously expanding the application of AI technology in terminal devices, particularly in the smartphone sector. In H1 2025, the company launched the world's first full-size AI smartphone, Nubia Z70 Ultra, which is expected to enhance user experience and increase the shipment volume of AI terminal products [2]