Core Viewpoint - Goldman Sachs reports that ZTE Corporation (00763) achieved a 21% year-on-year revenue growth in Q2, reaching 39 billion RMB, exceeding both the bank's and market expectations by 8% and 12% respectively [1] Financial Performance - Net profit met expectations, but gross margin fell short of forecasts [1] - Operating profit decreased by 36% year-on-year to 1.7 billion RMB, which is 39% and 26% lower than the bank's and market predictions [1] - Non-operating profit outperformed expectations, leading to a 6% quarter-on-quarter increase in net profit to 2.6 million RMB, which is basically in line with forecasts [1] Future Outlook - The bank maintains an optimistic view on ZTE's continuous expansion in non-telecom businesses [1] - Net profit forecasts for 2025 to 2027 have been revised down by 14%, 9%, and 3% respectively, while revenue forecasts have been adjusted up by 7%, 11%, and 13% [1] - Target price has been raised by 14% to 33.5 HKD [1]