ZTE(SZ:000063) Great Wall Securities·2024-10-30 00:08Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [14]. Core Views - The company has faced temporary pressure in its third-quarter performance but continues to focus on its strategic direction in intelligent computing, which is expected to support long-term growth [2][3]. - In the first three quarters of 2024, the company achieved revenue of 90.045 billion yuan, a year-on-year increase of 0.73%, and a net profit attributable to shareholders of 7.906 billion yuan, up 0.83% year-on-year [2][3]. - The company is committed to maintaining stable R&D investment, which accounted for 20.7% of revenue in the first three quarters, driving innovation in technologies such as 5G-A and intelligent computing [2][3]. Financial Summary - For 2024, the company is projected to achieve a net profit of 9.655 billion yuan, with a corresponding P/E ratio of 15 times [4]. - The company's revenue is expected to grow from 127.978 billion yuan in 2024 to 146.494 billion yuan by 2026, reflecting a compound annual growth rate [7]. - The net profit margin is projected to stabilize around 11.3% by 2026, with a return on equity (ROE) of approximately 12.7% [7][8].