Export Performance in 2025 - In 2025, China's exports are expected to grow by 5.0% (in USD), demonstrating strong resilience despite significant tariffs imposed by the US[2] - The decline in exports to the US is projected to narrow, with a drop of 18.9% in the first 11 months of 2025, impacting overall export growth by approximately 2.8 percentage points[11] - Exports to non-US markets contributed about 6.0 percentage points to overall export growth, offsetting the decline in US exports[11] Outlook for 2026 - For 2026, China's export growth is anticipated to slow to around 4%, still outperforming the global average of approximately 0.5%[14] - China's share of global exports is expected to rise to 15.5% in 2026, up from 15.0% in 2025 and 14.6% in 2024[22] - The export structure is shifting from low-end consumer goods to mid-to-high-end intermediate and capital goods due to global supply chain restructuring[2] Key Drivers of Export Resilience - Demand from emerging markets such as Africa, ASEAN, and Latin America is expected to drive the demand for industrial and intermediate goods, supporting Chinese exports[2] - China's competitive advantage in key segments of the supply chain continues to attract imports of essential intermediate and capital goods from countries like ASEAN[2] - Expansion in global AI computing power investments is likely to boost exports of Chinese electrical equipment and data center products[2] Risks and Policy Recommendations - Potential risks include the escalation of the US-China tariff war and increasing trade barriers from other economies[5] - Policy recommendations suggest enhancing domestic reforms and technological upgrades to strengthen export competitiveness[4] - Expanding high-level international openness is advised to provide stable support for enterprises' export and globalization efforts[4]

Investment 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].

Investment 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 8.4 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 and Market Position - The company is shifting its business structure towards enterprise and consumer markets, with a steady increase in market share [8]. - The operator network revenue was 70.33 billion yuan, down 15.02%, while the gross margin improved to 50.90% [9]. Growth Opportunities - The enterprise business revenue grew by 36.68% year-on-year to 18.57 billion yuan, driven by increased demand for servers and storage solutions [10]. - The consumer business revenue increased by 16.12% year-on-year to 32.41 billion yuan, supported by the growth of smart home applications and AI-enabled devices [10]. Future Projections - The company expects net profits of 8.85 billion yuan, 9.33 billion yuan, and 9.90 billion yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 20.16X, 19.10X, and 18.01X [12].