V i e w p o i n t | 25 Aug 2025 03:39:47 ET │ 36 pages Global Technology & Communications Citi's 2025 Global TMT Conference Preview: The Most Important Debates Across Tech & Communications CITI'S TAKE Citi's flagship Global TMT conference is rapidly approaching, a 3-day series from September 3rd-5th, hosted at the New York Hilton Midtown. We expect to hear from over 260 corporates across keynote presentations, fireside chats, panels, and 1x1 investor meetings. Amid a complex and rapidly changing technologic ...

Summary of ZTE (0763.HK) Conference Call Company Overview - **Company**: ZTE Corporation (0763.HK) - **Market Cap**: HK$184.6 billion / $23.7 billion - **Enterprise Value**: HK$202.2 billion / $25.9 billion - **12m Price Target**: HK$33.50 (H-share), Rmb51.90 (A-share) [6][25][26] Key Financial Highlights - **2Q25 Revenue**: Rmb39 billion, up 21% YoY and 17% QoQ, exceeding consensus estimates by 8% and 12% respectively [1][19] - **Gross Margin**: Declined by 3.4 percentage points QoQ and 8 percentage points YoY to 30.9% [1][19] - **Operating Income**: Rmb1.7 billion, down 36% YoY and 8% QoQ, significantly below consensus estimates [1][19] - **Net Income**: Rmb2.6 billion, down 13% YoY but up 6% QoQ, largely in line with expectations [1][19] Segment Performance - **Telecom Equipment**: Revenue decreased by 6% YoY due to slowing 5G investments in China [1][20] - **Enterprise ICT**: Achieved 110% YoY growth, driven by AI server and computing-related businesses [1][20] - **Consumer Electronics**: Grew by 8% YoY, supported by smartphone and cloud computer sales [1][20] Operational Insights - **Gross Margin Decline**: Attributed to changes in accounting methods and a higher revenue contribution from lower-margin server/storage segments [1][19] - **Non-Operating Gains**: Higher than expected, contributing positively to net income [1][19] Future Outlook - **Revenue Forecasts**: Revised upwards by 7% for 2025, 11% for 2026, and 13% for 2027, driven by AI trends boosting demand for computing infrastructures [21][22] - **Earnings Revisions**: Net income estimates for 2025-2027 revised down by 14%, 9%, and 3% respectively due to lower gross margins [21][22] - **Target Price Adjustments**: Target price for H-share raised by 14% to HK$33.50, based on a 15.0x 2026E P/E [25][36] Investment Considerations - **Neutral Rating**: Maintained due to the slowing capex cycle in the telecom sector, which may hinder overall growth [2][25] - **Valuation Metrics**: Current trading at 16x (H-share) and 21x (A-share) 2026E P/E, close to target multiples [2][25] - **Risks**: Include demand fluctuations in telecom infrastructure and potential non-operating gains/losses impacting earnings [37] Additional Insights - **Market Position**: ZTE is expanding into non-telecom businesses, including servers, storage, and consumer products [2][27] - **Data Center Solutions**: ZTE has completed over 450 data center projects globally, deploying more than 300,000 server racks [20][27] This summary encapsulates the key points from the conference call, highlighting ZTE's financial performance, segment growth, future outlook, and investment considerations.

Group 1 - T-Mobile US, Inc. has experienced a 52-week gain of nearly 25%, despite a lackluster performance since the start of March [1] - The company may face consumer weakness headwinds, which could impact future performance [1] Group 2 - The article emphasizes the importance of core values such as excellence, integrity, transparency, and respect for long-term success in the investment sector [1]

SAN JOSE, Calif., Aug. 29, 2025 (GLOBE NEWSWIRE) -- POET Technologies Inc. ("POET" or the "Company") (NASDAQ: POET), a leader in the design and implementation of highly-integrated optical engines and light sources for artificial intelligence networks, today announced it has partnered with NTT Innovative Devices Corporation, a subsidiary of Japan’s leading telecom company, to develop advanced optical engines to power next generation networks capable of supporting widespread use of artificial intelligence app ...

Smart Connected Services Investor Presentation A u g u s t 2 6 , 2 0 2 5 Safe Harbor Statement This presentation contains forward-looking statements. In particular, statements regarding future economic performance, finances, and expectations and objectives of management constitute forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical facts and generally contain words such as "believes", "expects", "may", "will", "should", "seeks", ...

Incoming results: As the June quarter results season wraps up, we take stock of key trends using our analysts' structured Reaction to Earnings data set (see Asia Quantitative Strategy: Asian Research Alpha Tools – Signal Through the Noise for more background). Overall, for APxJ/EM we saw a net 4ppt of results beating consensus, although a net 5ppt of companies are expected to see 12-month consensus lowered. In Japan, these figures landed at a net 15% beat and net 14% expected to see consensus rise. August 2 ...

IQSTEL has already identified acquisition targets as part of its two-pronged growth strategy.NEW YORK, Aug. 25, 2025 /PRNewswire/ -- IQSTEL Inc. (NASDAQ: IQST) today announced the next stage of its growth strategy, setting an intermediate goal of reaching a $15 million EBITDA run rate in 2026 as part of its long-term plan to become a $1 billion revenue company by 2027.Achieving this milestone matters because public companies in IQSTEL's sector are typically valued at 10x to 20x EBITDA. If the market applies ...

Summary of Key Points from the Conference Call Industry Overview - The focus is on the Chinese equity market, specifically the A-share and H-share markets, with a particular emphasis on the performance of the CSI300 and HSI indices [1][2]. Core Insights and Arguments 1. **Market Performance vs. Fundamentals**: Despite weaker fundamentals and downward revisions in earnings estimates, the equity market has shown resilience, with the CSI300 increasing by 4% and HSI by 2% in August. Retail flows and increased trading volumes are cited as potential drivers of this performance [1][2]. 2. **Historical Deviations**: Historical analysis indicates that share prices in the A-share market can deviate from fundamentals for extended periods (up to 12 months), while H-shares typically see shorter deviations (2-3 months) [1][2]. 3. **Potential for Continued Growth**: Several factors suggest that the current market exuberance could persist, including low margin financing as a percentage of market cap, robust growth in bank deposits, high trading volumes, and relatively inexpensive valuations compared to other regions [2][3]. 4. **Correction Triggers**: Potential triggers for market corrections include regulatory interventions, significant drawdowns in overseas markets, and expectations of policy support in October. However, the likelihood of these events is considered low at this stage [3][4]. 5. **Sector Preferences**: The report highlights a preference for A-share TMT (Technology, Media, and Telecommunications) sectors and brokers, while defensive sectors like consumer goods and utilities are viewed less favorably. Major banks and telecoms are still considered as preferred exposures due to the overall economic environment [4][36]. Additional Important Insights 1. **A-H Premium Dynamics**: The report suggests that the A-H premium may widen again, indicating better upside potential for A-shares compared to H-shares [1][2]. 2. **Market Correlations**: The performance of the HSI is correlated with forward earnings revisions, and historical data shows that divergences between earnings revisions and HSI performance do not last long [6][8]. 3. **Valuation Comparisons**: Chinese equities are noted to be inexpensive relative to global markets, which may attract further investment [22][39]. 4. **Risks to Consider**: Risks facing the Chinese equity market include a potential hard landing in the property market, capital outflows due to currency depreciation, and slow progress in structural reforms. Excessive stimulus policies could also pose risks to the transition from an investment-driven to a consumption-driven economy [39][38]. This summary encapsulates the key points discussed in the conference call, providing a comprehensive overview of the current state and outlook of the Chinese equity market.

Industry Overview - The telecom industry has experienced a positive year, with a rise of approximately 13% and 30% on a yearly basis, although this performance remains below that of the broader S&P 500 [1] Performance Analysis - Over a 5-year period, the telecom industry's returns have been analyzed, indicating a need for further evaluation against historical performance metrics [1]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $910 million, exceeding guidance and up over 20% year-over-year and 4% sequentially [4][11] - Full fiscal year 2025 revenue was a record $3.4 billion, representing a 19% increase from the prior year [5][16] - Non-GAAP EPS for Q4 was $2.65, a new quarterly record, while full year non-GAAP EPS hit $10.17 [5][11] Business Line Data and Key Metrics Changes - Optical Communications revenue was $689 million, up 15% year-over-year and 5% sequentially, with telecom revenue at $412 million, a 46% increase from a year ago [12][16] - Datacom revenue was $277 million, down 12% year-over-year but up 10% sequentially, driven by demand for higher data rate products [13][19] - Non-optical communications revenue was $221 million, a 41% increase year-over-year and 3% sequentially, with automotive revenue at $128 million [14][16] Market Data and Key Metrics Changes - Telecom revenue growth was primarily driven by data center interconnect (DCI) products, which represented 12% of overall revenue at $107 million [12][19] - DCI revenue grew 45% year-over-year, indicating strong demand trends [7][68] - The automotive segment showed a slight decline but performed better than expected, while industrial laser revenue remained stable [9][14] Company Strategy and Development Direction - The company established a significant partnership with Amazon Web Services, expected to be a meaningful revenue driver in fiscal year 2026 [5][79] - Construction began on Building 10, which will add 2 million square feet of capacity, with plans to accelerate completion due to increasing customer demand [5][17] - The company is introducing a new revenue category for high-performance computing (HPC) to better capture growth in this area [20][79] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for fiscal year 2026, citing strong customer demand and multiple growth drivers [6][19] - There are temporary component supply challenges impacting Datacom revenue, but these are expected to be resolved [9][54] - The company anticipates healthy year-over-year and sequential growth in Q1, with revenue guidance between $910 million and $950 million [21][19] Other Important Information - The company returned $126 million to shareholders through a buyback program, with continued repurchases expected in fiscal year 2026 [5][18] - The effective GAAP tax rate was 6.5%, and the company ended the year with cash and short-term investments of $934 million [16][17] Q&A Session Summary Question: Clarification on Datacom revenue dip - Management clarified that the expected dip in Datacom revenue for September does not include contributions from the new HPC segment, which will be reported separately [25][26] Question: Future hyperscaler transceiver opportunities - Management indicated that future hyperscaler opportunities would predominantly be on 1.6 terabit port speeds, while 800 gig opportunities remain [27][28] Question: Growth prospects for fiscal year 2026 - Management remains optimistic about growth prospects, citing strong demand for 1.6 terabit products and continued telecom trends [36][38] Question: Impact of component shortages on Datacom - Management acknowledged that component shortages are causing a temporary dip in Datacom revenue but expressed confidence in resolving these issues [54][55] Question: Amazon PCB business potential - Management believes the Amazon PCB business could represent a significant opportunity, with revenue expected to ramp in fiscal Q1 [78][79] Question: Visibility on 800 gig demand - Management confirmed good visibility on 800 gig demand, indicating that supply constraints are currently more of an issue than demand constraints [87][88] Question: Tariffs impact - Management stated that they have not seen significant impacts from tariffs, as shipping terms place the responsibility on customers [90][91]