ZTE(SZ:000063) 第一财经·2025-10-28 15:46Core Viewpoint - The profitability of ZTE Corporation has been significantly impacted by the reduction in investment from telecom operators, leading to a decline in net profit despite a slight increase in revenue [3][4]. Financial Performance - In Q3, ZTE reported revenue of 28.967 billion yuan, a year-on-year increase of 5.11%, while net profit fell by 87.84% to 264 million yuan [3]. - For the first three quarters, ZTE's revenue reached 100.52 billion yuan, up 11.63% year-on-year, but net profit decreased by 32.69% to 5.322 billion yuan [3]. Business Segment Analysis - The contraction in traditional communication business is the primary reason for ZTE's profit decline [4]. - The capital expenditure of the three major telecom operators in China decreased by 16.5% year-on-year, totaling 112.8 billion yuan in the first half of 2025 [4]. - Revenue from ZTE's operator network business fell by approximately 6% in the first half of the year, attributed to the maturity of domestic 5G network construction [6]. Strategic Shift - ZTE is shifting its focus towards emerging businesses, particularly in the computing sector, which saw a revenue increase of 180% year-on-year, accounting for 25% of total revenue [6]. - The company has developed self-researched DPU chips and large-capacity switching chips, achieving large-scale high-performance interconnection of domestically produced GPU cards [7]. - ZTE's new orthogonal super-node system for high-performance training and inference is designed to support large-scale intelligent computing clusters [7]. Market Reaction - On October 28, ZTE's stock closed at 39.56 HKD, down 4.86%, while its A-share closed at 49.39 yuan, down 3.76% [7].