ZTE(000063) 国信证券·2025-03-02 09:33Investment Rating - The investment rating for the company is "Outperform the Market" [6][4]. Core Views - The company is undergoing a structural adjustment in revenue for 2024, with a focus on "computing power + connectivity" [4][10]. - Revenue for 2024 is projected at 121.299 billion yuan, a decrease of 2.38%, with a net profit of 8.425 billion yuan, down 9.66% year-on-year [10][4]. - The company plans to distribute a cash dividend of 6.17 yuan per 10 shares to all shareholders [10]. Revenue Structure Adjustment - The ICT industry is experiencing structural changes due to adjustments in investment, leading to revenue pressure for the company [2]. - The company's operator network revenue is expected to be 70.3 billion yuan in 2024, a decrease of 15.02% year-on-year [2]. - The company is increasing R&D investment in the government and enterprise market, with expected revenue of 18.6 billion yuan in 2024, a growth of 36.68% year-on-year [2]. - Consumer business revenue is projected to grow by 16.1% year-on-year, driven by AI opportunities and a strong performance in mobile products, which saw revenue growth of over 40% [2]. Financial Performance and Cost Management - The overall gross margin for 2024 is expected to be 37.91%, down 3.57 percentage points year-on-year, primarily due to the increased revenue share of lower-margin server products [2][14]. - The company has effectively managed costs, with R&D, sales, and management expense ratios decreasing by 0.54%, 0.81%, and 0.84% respectively [3][14]. - The company is focusing on key projects to enhance operational efficiency [3]. Future Outlook - For 2025, the company aims to continue leveraging "computing power + connectivity" to expand its computing and mobile business [4][19]. - The company is pushing for a diversified domestic intelligent computing ecosystem and plans to enhance its AI mobile product offerings [17][19]. - The profit forecast for 2025 is adjusted to a net profit of 8.884 billion yuan, with corresponding PE ratios of 20.8X [4][21].