Ge Long Hui·2025-12-11 07:56Core Viewpoint - ZTE Corporation's stock has experienced significant declines due to negative overseas news, particularly regarding potential payments to the U.S. to resolve overseas bribery allegations [1][3] Stock Performance - ZTE's A-shares closed at 37.82 yuan, hitting the daily limit down, with a market capitalization of 180.91 billion yuan [1] - H-shares fell over 13% to 27.46 HKD, with a total market value of 131.36 billion HKD [1] - The company's stock has seen a turbulent period, with A-shares down nearly 10.14% month-to-date and down approximately 4.93% year-to-date [9] Financial Performance - In Q3, ZTE reported revenue of 28.967 billion yuan, a year-on-year increase of 5.11%, but net profit dropped 87.84% to 264 million yuan [10] - For the first three quarters, total revenue reached 100.52 billion yuan, up 11.63% year-on-year, while net profit fell 32.69% to 5.322 billion yuan [11] Business Segments - ZTE's computing power business has seen explosive growth, with revenue increasing by 180% year-on-year, accounting for 25% of total revenue [12] - Revenue from servers and storage grew by 250%, and data center product revenue increased by 120%, becoming key drivers of revenue growth [13] R&D Investment - The company invested 17.81 billion yuan in R&D in the first three quarters, representing about 18% of total revenue, with a significant portion allocated to computing power-related technologies and products [14] Market Outlook - Tianfeng Securities views ZTE as a leading player in the domestic ICT sector, adapting to the digital economy and expanding into IT and AI computing power [15] - The firm has adjusted its profit forecasts for 2025-2027, projecting net profits of 7.725 billion yuan, 9.029 billion yuan, and 10.459 billion yuan, with corresponding EPS of 1.61 yuan, 1.89 yuan, and 2.19 yuan, maintaining a "buy" rating [15]