ZTE(000063) 中原证券·2024-12-31 05:52Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index within the next six months [11][16]. Core Insights - The company is a global leader in communication equipment, focusing on both traditional wireless and wired products while accelerating the expansion of its second curve business, which includes computing power and mobile devices [16]. - The company has achieved significant growth in its operator network, government and enterprise business, and consumer business, with notable revenue increases in these segments [15][16]. - The report forecasts the company's net profit for 2024-2026 to be 95.92 billion, 102.01 billion, and 110.06 billion respectively, with corresponding P/E ratios of 20.35X, 19.13X, and 17.73X [16]. Financial Performance Summary - Revenue for 2022 was 122,954 million, with a growth rate of 7.36%. For 2023, revenue is projected at 124,251 million, showing a modest growth of 1.05%. The forecast for 2024 is 124,770 million, indicating a slight increase of 0.42% [6]. - Net profit for 2022 was 8,080 million, with a growth rate of 18.60%. The projected net profit for 2023 is 9,326 million, reflecting a growth of 15.41%, and for 2024, it is expected to be 9,592 million, a growth of 2.86% [6]. - The company's earnings per share (EPS) for 2022 was 1.69, with projections of 1.95 for 2023 and 2.01 for 2024 [6]. Market Position and Strategy - The company maintains a leading position in the domestic market for optical transmission products, having completed the world's first large-scale commercial use of a 400G all-optical interprovincial backbone network [2]. - In the consumer business, the company focuses on AI-driven smart ecosystems, with a 14.3% year-on-year revenue growth in the first half of 2024, driven by increased sales of home terminals and mobile products [3]. - The government and enterprise sector has seen a remarkable 56.1% year-on-year revenue growth in 2024H1, primarily due to increased sales of servers and storage solutions [15].