ZTE(000063) 中原证券·2025-03-10 14:50Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected increase of over 15% relative to the CSI 300 index within the next six months [21]. Core Views - The company is transitioning towards a "Connection + Computing Power" model as operator network revenues face pressure, with a focus on ICT solutions for telecom operators and enterprise clients [8][12]. - In 2024, the company reported a revenue of 121.3 billion yuan, a decrease of 2.38% year-on-year, and a net profit of 8.43 billion yuan, down 9.66% year-on-year [5]. - The company is enhancing its market share in the enterprise and consumer sectors, with revenue contributions from operator networks, enterprise business, and consumer business at 58.0%, 15.3%, and 26.7% respectively [8]. Summary by Sections Financial Performance - In Q4 2024, the company achieved a revenue of 31.25 billion yuan, a decline of 10.34% year-on-year, with a net profit of 518 million yuan, down 65.08% year-on-year [5]. - The domestic market revenue was 82.01 billion yuan, a decrease of 5.18%, while international market revenue reached 39.29 billion yuan, an increase of 4.04% [8]. Business Structure - The company is gradually shifting its business structure towards enterprise and consumer markets, with a notable increase in revenue from the enterprise sector [8]. - The company is focusing on AI solutions, providing comprehensive computing power solutions across various sectors, which is expected to enhance its market position [8]. Market Position - The company maintains a stable market share in traditional operator networks, with core wireless and wired products showing resilience [9]. - In the enterprise market, the company reported a revenue of 18.57 billion yuan, a growth of 36.68% year-on-year, driven by increased demand for servers and storage solutions [10]. Future Outlook - The company is expected to see a recovery in net profit, with projections of 8.85 billion yuan, 9.33 billion yuan, and 9.90 billion yuan for 2025, 2026, and 2027 respectively [12]. - The ongoing development of domestic computing power infrastructure is anticipated to provide new growth opportunities for the company's server and switch businesses [12].