ZTE(000063) Minsheng Securities·2025-03-02 06:23Investment Rating - The report maintains a "Recommended" rating for the company [6] Core Views - The company experienced a revenue decline of 2.38% year-on-year in 2024, with total revenue reaching 121.299 billion yuan. The net profit attributable to shareholders decreased by 9.66% to 8.425 billion yuan [1] - The operator network business faced pressure, but the computing power and terminal business showed growth potential, indicating a shift in focus towards AI and computing solutions [4] Summary by Sections Overall Performance - The company's revenue from operator networks was 70.327 billion yuan, down 15.02% year-on-year, while the gross margin improved to 50.90%, an increase of 1.79 percentage points. The enterprise business revenue grew by 36.68% to 18.566 billion yuan, although its gross margin decreased by 19.58 percentage points. Consumer business revenue increased by 16.12% to 32.406 billion yuan, with a gross margin of 22.66%, up 0.57 percentage points. The company effectively controlled sales, management, and R&D expenses, which decreased by 0.81, 0.84, and 0.54 percentage points respectively [2] Computing Power - The company accelerated its penetration into major industry clients, with a significant increase in revenue from servers for internet giants and large banks, supporting nearly 60% growth in domestic enterprise revenue. International market orders for data centers more than doubled year-on-year. The company is involved in building distributed high-performance domestic computing resource pools and has developed proprietary chips to support various computing acceleration hardware [3] Terminals - The company expanded its AI terminal offerings, with mobile phone product revenue growing over 40%. The home broadband terminal shipments exceeded 100 million units, maintaining the top global market share for four consecutive years. The company launched innovative mobile devices and collaborated with operators to develop AI smartphones, with notable sales in the gaming phone segment [4] Financial Forecast - The company is projected to achieve net profits of 8.744 billion yuan in 2025, 9.313 billion yuan in 2026, and 10.152 billion yuan in 2027, with corresponding PE ratios of 21, 20, and 18 [5][9]