Ge Long Hui·2025-10-31 02:54Core Viewpoint - ZTE Corporation's Q3 performance significantly underperformed market consensus expectations in terms of revenue, profit margins, and earnings, primarily due to changes in product mix and weak telecom capital expenditures affecting the high-margin operator network business [1] Revenue Performance - The operator network business's performance was far below expectations due to weak telecom capital expenditures [1] - Revenue recognition timing issues further exacerbated the situation [1] Future Outlook - As ZTE begins to recognize related revenues in Q4, a significant recovery in the operator network business is anticipated [1] Analyst Rating - The firm maintains a "Hold" rating and has lowered the target price from HKD 40 to HKD 35.8 [1]