ZTE(SZ:000063) Guolian Securities·2024-10-22 12:42Investment Rating - The report maintains a "Buy" rating for the company [4][6][7] Core Views - The company reported a revenue of 900.45 billion yuan for the first three quarters of 2024, a year-on-year increase of 0.73%, and a net profit attributable to shareholders of 79.06 billion yuan, up 0.83% year-on-year. However, the non-recurring net profit decreased by 2.86% year-on-year [2][6] - The company is focusing on building an open intelligent computing ecosystem as a long-term strategic direction, with a significant emphasis on providing comprehensive intelligent computing solutions [6][7] - Despite short-term pressure on performance, the company has seen rapid growth in its government and enterprise business as well as consumer business [2][6][7] Financial Performance Summary - For Q3 2024, the company reported a revenue of 275.57 billion yuan, a year-on-year decrease of 3.94%, and a net profit of 21.74 billion yuan, down 8.23% year-on-year. The gross margin for Q3 was 40.35%, an increase of 1.37 percentage points quarter-on-quarter [6][7] - The company expects revenues for 2024-2026 to be 1258.92 billion yuan, 1327.56 billion yuan, and 1409.42 billion yuan, with year-on-year growth rates of 1.32%, 5.45%, and 6.17% respectively [7][8] - The projected net profit for the same period is 98.67 billion yuan, 104.43 billion yuan, and 108.90 billion yuan, with growth rates of 5.80%, 5.84%, and 4.28% respectively [7][8] Strategic Initiatives - The company is actively advancing the deployment of 5G-A technology, collaborating with operators to create an integrated 5G-A network that stimulates new business opportunities in various sectors [7] - The establishment of an open intelligent computing laboratory aims to enhance multi-vendor GPU interconnectivity and optimize compatibility testing for large models [6][7]