中兴通讯-2024 年第四季度业绩未达预期，但服务器及数据中心相关业务发展仍值得期待

Summary of ZTE (0763.HK) Earnings Call Company Overview - Company: ZTE Corporation (0763.HK) - Industry: Telecommunications Equipment Key Financial Results - 4Q24 Revenue: Rmb 31.3 billion, down 10% YoY, 23% below CitiE and 14% below BBGe [1][2] - 4Q24 Gross Margin: 30.6%, a decline of 5.4 percentage points YoY, 12.4 percentage points below CitiE and 8.5 percentage points below BBGe [1][2] - 4Q24 Operating Expenses: Rmb 9.5 billion, down 19% YoY, 37% below CitiE and 17% below BBGe [1][2] - 4Q24 Net Profit: Rmb 518 million, a 65% decline YoY, 76% below CitiE and 70% below BBGe [1][2] - FY24 Revenue: Rmb 121.3 billion, down 2% YoY, 7% below CitiE and 4% below BBGe [2] - FY24 Net Profit: Rmb 8.4 billion, a 10% decline YoY, 16% below CitiE and 13% below BBGe [2] Segment Performance - Carrier Network Revenue: Declined 15% YoY to Rmb 70.3 billion, impacted by muted domestic telco investment [6] - Government and Corporate Business Revenue: Increased 37% YoY to Rmb 19 billion, driven by server and storage product sales [6] - Consumer Business Revenue: Grew 16% YoY to Rmb 32.4 billion, supported by household terminal and mobile product sales [6] Operational Insights - Cost Control: The company implemented stringent cost control measures, resulting in a significant reduction in operating expenses [1][2] - Product Mix Impact: The decline in gross margin was attributed to a higher mix of lower-margin server and terminal products [1][2] Future Outlook - Investor Focus Areas: Key topics for future earnings calls include revenue and net profit outlook, server and data center business outlook, operating expense control plans, and domestic/overseas telco segment outlook [1] - Target Price: The target price for ZTE is set at HK$19.80, indicating a potential share price return of -32.4$140.16 billion (US$18.02 billion) [4] - Dividend Yield: Expected at 2.5% [4] - Earnings Projections: Expected diluted EPS for FY24 is Rmb 2.117, with a projected growth of 8.2% [3] This summary encapsulates the critical financial metrics, operational insights, and future outlook for ZTE Corporation, providing a comprehensive overview for potential investors and stakeholders.