智通财经网·2025-10-31 03:04Core Viewpoint - ZTE Corporation's Q3 2025 performance significantly underperformed market consensus expectations in terms of revenue, profit margins, and earnings due to changes in product structure and weak telecom capital expenditures [1] Group 1: Financial Performance - ZTE's revenue and profit margins were notably lower than market expectations for Q3 2025 [1] - The operator network business, which typically has high profit margins, performed much worse than anticipated due to weak telecom capital spending [1] - Issues related to revenue recognition timing further exacerbated the situation [1] Group 2: Future Outlook - ZTE is expected to start recognizing related revenues in Q4, which should lead to a significant recovery in the operator network business [1] - The target price for ZTE's stock has been lowered from HKD 40 to HKD 35.8, while maintaining a "Hold" rating [1]