ZTE(SZ:000063) Minsheng Securities·2025-03-02 05:54Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expected stock price increase of over 15% relative to the benchmark index within the next 12 months [6][12]. Core Views - The company's revenue for 2024 was 121.30 billion yuan, a decrease of 2.38% year-on-year, with a net profit attributable to shareholders of 8.43 billion yuan, down 9.66% year-on-year. The operating cash flow also saw a significant decline of 34.05% [1][2]. - The operator network business faced challenges, but the company is seeing growth in its computing power and terminal segments, which are expected to enhance operational resilience [4][5]. Summary by Sections Overall Performance - The company reported a total revenue of 121.30 billion yuan in 2024, with a decline in operator network revenue by 15.02% to 70.33 billion yuan, while enterprise and consumer segments showed growth [2][3]. - The enterprise business revenue increased by 36.68% to 18.57 billion yuan, although the gross margin decreased by 19.58 percentage points [2]. - Consumer business revenue grew by 16.12% to 32.41 billion yuan, with a slight increase in gross margin [2]. Computing Power - The company accelerated its penetration into major industry clients, with a doubling of revenue from internet giants and large banks, contributing to nearly 60% growth in domestic enterprise revenue [3]. - The company is involved in building distributed high-performance computing resource pools and has developed proprietary chips to support various computing acceleration hardware [3]. Terminals - The company has expanded its AI terminal offerings, with mobile phone revenue increasing by over 40% [4]. - Home broadband terminal shipments exceeded 100 million units, maintaining the top global market share for four consecutive years [4]. Financial Forecast - The company forecasts net profits of 8.74 billion yuan in 2025, 9.31 billion yuan in 2026, and 10.15 billion yuan in 2027, with corresponding PE ratios of 21, 20, and 18 [5][9].