Summary of the Conference Call for AVIC Optoelectronics Company Overview - **Company**: AVIC Optoelectronics - **Industry**: Aerospace and Defense, Civil Electronics Key Financial Performance - **Revenue Growth**: Revenue for the first three quarters increased by 2.36% year-on-year, reaching 158 billion RMB, with a notable 12.36% growth in sales revenue for Q3 at 45.6 billion RMB [2][3] - **Net Profit Decline**: Net profit decreased by 30% year-on-year, with Q3 net profit at 2.9 billion RMB [2][3] - **Gross Margin**: Gross margin fell from 36.5% to 29.7%, attributed to changes in business structure, market pressures, customer price reductions, and rising raw material costs [2][3][7] Business Segment Performance - **Civil Business**: Civil business now accounts for 60% of total revenue, with the electric vehicle sector contributing 25% [2][4] - **Data Center Growth**: Data center business saw over 50% growth, exceeding 1 billion RMB in revenue for the first three quarters [2][6] - **Defense Business**: Defense business revenue conversion cycle extended to 450-500 days, impacting revenue recognition [12][14] Strategic Initiatives - **Cost Management**: The company is implementing design, production, procurement, and process optimizations to manage costs effectively [8] - **Accounting Policy Change**: A new accounting policy will be adopted on January 1, 2026, focusing on precise cost accounting to enhance operational efficiency [9][10] - **R&D Investment**: Increased R&D investment by 12% year-on-year, focusing on new technologies and products, particularly in liquid cooling solutions [21] Market Outlook - **Q4 Expectations**: Revenue is expected to stabilize in Q4, but profitability may remain under pressure due to the extended defense revenue conversion cycle [11] - **Military Growth Forecast**: Anticipated compound annual growth rate (CAGR) of approximately 10% for military business over the next two to three years [16][17] - **International Expansion**: Plans to increase international business revenue to 15-20% of total revenue over the next five years, despite current geopolitical challenges [5][28] Emerging Technologies and Products - **Liquid Cooling Solutions**: This segment is expected to grow significantly, currently accounting for 60% of data center revenue [19][23] - **Quantum Technology**: Early-stage development with ongoing collaborations, focusing on RF connectors and optoelectronic components [24] Challenges and Risks - **Material Cost Increases**: Rising gold prices have negatively impacted military gross margins by 1-2% [25] - **Market Conditions**: The company faces challenges in the international market, particularly in the renewable energy sector, which is growing slower than expected [29] Conclusion - **Long-term Outlook**: Short-term performance does not reflect the company's long-term potential, with management confident in achieving better results through strategic planning and execution [38]

Summary of Sinocera Functional Material (300285.SZ) Conference Call Company Overview - **Company**: Sinocera Functional Material - **Ticker**: 300285.SZ - **Market Cap**: Rmb22.7 billion / $3.2 billion - **Industry**: Advanced Materials, specifically fine ceramic materials Key Points from the Conference Call 1. Sales Performance - **3Q25 Sales Growth**: Sales growth was observed across most products, except for MLCC (Multi-layer Ceramic Capacitors) and ceramic bearing balls, which faced challenges due to price discounts and downstream destocking respectively [1][5][10] - **MLCC Sales**: Management noted that MLCC sales were impacted by price discounts on mature products, with a full-year shipment expectation of around 7,000 tons, flat year-over-year [5][10] - **Catalytic Materials**: Experienced solid sales growth of over 30% year-over-year, driven by increased penetration into new models and large customers [5][10] - **Biomedical Materials**: Sales turned positive year-over-year, attributed to a better product mix with high-end products launched [6][10] 2. New Product Developments - **Zirconium Dispersion**: Expected to contribute tens of millions in sales this year, with significant downstream demand noted [8][10] - **AI-server/Auto-grade MLCC**: Anticipated to drive incremental sales next year, with new capacity ramping up [1][10] - **Solid State Battery Electrolyte**: Sampling process has begun, with production lines expected to be completed by year-end, highlighting a high ASP of around Rmb5 million per ton [8][10] 3. Capacity Expansion - **New Capacity**: Management is accelerating the build-out of 5,000 tons of new capacity, with part expected to be completed by year-end [5][10] - **Ceratron Phase II Capacity**: Expected to start testing in 4Q25, positioning the company for growth in the precision ceramics segment [5][10] 4. Financial Guidance - **4Q25 NP Guidance**: Management expects notable year-over-year growth in net profit, driven by a low base from the previous year [5][10] - **2025 NP Growth**: Management is confident in achieving over 10% year-over-year growth for 2025 net profit [5][10] 5. Risks and Challenges - **Market Share Expansion**: Risks include slower-than-expected expansion in ceramic powder market share and customer penetration in the catalytic material business due to technology and quality issues [9][10] - **End-Market Growth**: Slower-than-expected growth in end-markets poses a risk to overall performance [9][10] 6. Valuation and Investment Thesis - **Price Target**: The 12-month target price is set at Rmb25.00, representing an upside of 10.6% from the current price of Rmb22.61 [11][10] - **Investment Thesis**: Sinocera is positioned for long-term growth due to its unique exposure to structural growth opportunities in various end-markets, supported by ongoing R&D and M&A activities [10][11] 7. Financial Metrics - **Revenue Forecasts**: Expected revenue growth from Rmb4,046.6 million in 2024 to Rmb6,513.3 million by 2027 [11][10] - **EBITDA and EPS**: Projected EBITDA growth from Rmb986.7 million in 2024 to Rmb1,681.9 million by 2027, with EPS expected to increase from Rmb0.61 to Rmb0.99 over the same period [11][10] Conclusion Sinocera Functional Material is navigating a challenging market environment with strategic product launches and capacity expansions. The company is well-positioned for future growth, although it faces risks related to market share expansion and end-market growth dynamics. The investment thesis remains positive, supported by a solid valuation and growth prospects.

Summary of Ganfeng Lithium Conference Call Company Overview - **Company**: Ganfeng Lithium (1772.HK) - **Industry**: Lithium production and battery manufacturing Key Financial Highlights - **Net Profit**: Ganfeng Lithium reported a net profit of Rmb 26 million for the first nine months of 2025, marking a return to profitability in Q3 2025 after three consecutive quarters of losses [1][2] - **Gross Profit Margin (GpM)**: The GpM improved to 15.1% in Q3 2025, an increase of approximately 7 percentage points both quarter-over-quarter (QoQ) and year-over-year (YoY) [2][3] - **Battery Segment Performance**: The battery segment's GpM is estimated to rise to 17% in Q3 2025, up from 15% in the first half of 2025, driven by robust downstream demand, particularly in energy storage systems (ESS) [1][2] Operational Insights - **Cash Flow**: Ganfeng reported a free cash outflow of Rmb 1,740 million in Q3 2025, with operating cash flow (OCF) at -Rmb 729 million and capital expenditures (capex) at Rmb 1,010 million [3] - **Net Gearing Ratio**: The net gearing ratio decreased slightly to 59% in Q3 2025 from 61% in Q2 2025 [3] Market Valuation - **Current Share Price**: As of October 28, 2025, the share price was HK$47.20 [4] - **Target Price**: The target price is set at HK$20.43, indicating a potential downside of 56.7% from the current price [4] - **Market Capitalization**: Ganfeng Lithium has a market cap of HK$134,954 million (approximately US$17,373 million) [4] Risks and Opportunities - **Downside Risks**: - Geopolitical risks related to overseas mining assets - Lower-than-expected demand for lithium-ion batteries - Slower ramp-up of projects like Goulamina and Mariana [9] - **Upside Risks**: - Stronger-than-expected demand for lithium-ion batteries - Faster-than-expected ramp-up of Goulamina and Mariana - Government supply reform policies that could benefit the lithium sector [9] Analyst Recommendations - **Investment Rating**: The current rating is Neutral, reflecting a cautious outlook on the stock's performance [4][9] - **Expected Dividend Yield**: The expected dividend yield is 0.1%, with an expected total return of -56.6% [4] Conclusion Ganfeng Lithium has shown signs of recovery with a return to profitability and improved gross profit margins, particularly in its battery segment. However, significant risks remain, including geopolitical factors and market demand fluctuations, which could impact future performance. The stock is currently rated Neutral with a substantial downside to the target price.

Summary of Sungrow Power Supply Co. (300274.SZ) Earnings Call Company Overview - **Company**: Sungrow Power Supply Co. (300274.SZ) - **Industry**: Clean Energy & Technology, specifically focusing on solar inverters and energy storage systems (ESS) Key Financial Results - **3Q25 Results**: - Revenue: Rmb22,869 million (+21% YoY) - Gross Profit: Rmb8,202 million (+47% YoY) - EBIT: Rmb5,023 million (+62% YoY) - Net Income: Rmb4,147 million (+57% YoY) - Gross Profit Margin (GPM): 36% (+6pp YoY) - Operating Profit Margin (OPM): 22% (+6pp YoY) - Net Profit Margin (NPM): 18% (+4pp YoY) - Compared to Goldman Sachs Estimates (GSe): Revenue -5%, Gross Profit +12%, EBIT +12%, Net Income +8% [1][20][21] Growth Drivers - **Energy Storage Systems (ESS)**: - Sales increased by 105% YoY in 1-3Q25, reaching Rmb28,800 million - 3Q25 sales were Rmb10,997 million (+78% YoY) - Total shipment reached 29GWh in 1-3Q25, with 83% from overseas markets [2][19] - **Solar Inverters**: - Sales increased by 6% YoY in 1-3Q25, totaling Rmb23,400 million - 3Q25 sales were Rmb8,073 million (+3% YoY) despite a significant decline in domestic solar installations [18] Market Outlook - **2026E Global ESS Installation Growth**: Expected to grow by 40%-50% driven by: - Higher renewable energy mix - Diversifying revenue mechanisms - Rising demand for grid stability and data center power [19] - **US Market Uncertainties**: - Ongoing uncertainties for ESS projects starting after January 1, 2026, due to One Big Beautiful Bill Act (OBBBA) restrictions - Management anticipates US ESS shipments of 13GWh in 2025E and 17GWh in 2026E [19] Strategic Initiatives - **AIDC Power Products**: - R&D on AI data center power products, including solid-state transformers and high-voltage direct current systems - Initial product launch and small-scale delivery targeted for 2026E, but no significant financial contribution expected in the near term [17] - **Supply Chain Optimization**: - Addressing OBBBA restrictions and ensuring supply chain efficiency for ESS projects [19] Financial Projections - **Revised Net Income Forecasts**: - 2025E-30E net income forecasts raised by 6% on average - 12-month target price adjusted to Rmb162.3 from Rmb148.9, reflecting solid global ESS outlook and GPM improvement [20][24] Risks and Challenges - **Domestic Solar Demand**: - Anticipated 0% to -20% growth in inverter and solar EPC sales in 2026E due to headwinds in the Chinese market [20] - **Regulatory Risks**: - Trade conflicts and OBBBA restrictions may impact long-term ESS business, which constitutes 32% of total sales [24] Conclusion - **Investment Rating**: Neutral - **Key Factors**: The balance of risks and rewards at the current stock price, with ongoing monitoring of global trade policies and company strategies to mitigate tariff impacts [24]

Summary of Oriental Yuhong's NDR Call and 3Q25 Results Company Overview - **Company**: Oriental Yuhong (002271.SZ) - **Industry**: Construction Chemicals, specifically waterproofing materials Key Points from the Call 1. 3Q25 Performance Highlights - **Topline Growth**: - 3Q25 saw a positive growth of +9% year-over-year (yoy) for the first time since 3Q23, improving from a decline of high-teens% in 1Q25 and narrowing to -SD% in 2Q25 [3][5] - Project distributor sales reached Rmb3.4 billion, up +3% yoy, attributed to market share expansion and demand from mega infrastructure projects [5] - Retail sales increased to Rmb2.3 billion, up +6% yoy, supported by channel and product expansion [5] - Direct sales surged to Rmb1.1 billion in 3Q25 from Rmb341 million in 3Q24, driven by overseas and specialty domestic business growth [5][6] 2. Product Performance - **Waterproof Membrane Sales**: Grew +5% yoy, with volume growth of +12% offset by soft average selling price (ASP) [9] - **Waterproof Coatings**: Achieved +15% yoy growth, primarily driven by ASP increases [9] - **Special Mortar Business**: Recorded Rmb3.3 billion in sales revenue and 8 million tons in sales volume for 9M25, exceeding last year's full-year level [9] 3. Profitability and Impairment - **Gross Profit Margin (GPM)**: Declined by -4.1 percentage points yoy in 3Q25 due to ASP pressure, incentive rebates, and unfavorable product mix [9] - **Impairment**: High impairment in 3Q25 was due to increased discounts on property collateral disposals, with an expected impairment ratio of 40% by year-end [9][10] 4. Cash Flow and Capital Allocation - **Operating Cash Flow**: Turned positive for the first time in ten years for 9M25, with accounts receivable declining -19% yoy by end-3Q25 [12] - **Capital Expenditure (Capex)**: Focused on overseas factories and selective acquisitions, with limited domestic capex primarily for upstream mine acquisitions [12] 5. Industry Outlook - **2026E Expectations**: Management is optimistic about industry demand bottoming out, with expectations for project sales to stabilize and continued market share expansion [12][13] - **Overseas Business Growth**: Anticipates organic overseas sales to double yoy in 2026E, with contributions from newly acquired companies in Chile and Hong Kong [12][13] 6. Risks - **Key Risks Identified**: - Weaker-than-expected construction activities - Unexpected increases in raw material prices - Impairment losses related to receivables from risky developers [15][17] 7. Investment Thesis - **Market Position**: Oriental Yuhong is the largest producer of waterproofing materials in China, with strong leadership and competitive advantages in a fragmented market [16] - **Long-term Potential**: As the property market stabilizes, Yuhong is positioned to become a one-stop solution provider for construction chemicals [17] 8. Financial Projections - **Price Target**: Rmb15.50, with an upside of 18.5% from the current price of Rmb13.08 [18] - **Market Cap**: Rmb29.7 billion / $4.2 billion [18] This summary encapsulates the critical insights from Oriental Yuhong's recent NDR call and 3Q25 results, highlighting the company's performance, outlook, and strategic direction in the construction chemicals industry.

Summary of Sungrow Power Supply 3Q25 Results Conference Call Company Overview - **Company**: Sungrow Power Supply (300274.SZ) - **Industry**: Solar and Energy Storage Systems (ESS) Key Financial Highlights - **Net Profit**: Increased by 57.0% year-over-year (yoy) to Rmb4,147 million in 3Q25 and 56.3% yoy to Rmb11,881 million in 9M25, exceeding consensus estimates [2][15] - **Revenue Growth**: Total revenue rose by 32.9% yoy to Rmb66.4 billion in 9M25, with ESS revenue up 105% yoy to Rmb28.8 billion and inverter revenue up 12% yoy to Rmb23.4 billion [15][18] - **Operating Cash Flow**: Surged 11.3 times yoy to Rmb9.9 billion in 9M25, driven by improved accounts receivable collection [2][15] ESS and Inverter Performance - **ESS Shipment Volume**: Increased by 70% yoy to 29 GWh in 9M25, with a target of 40-50 GWh for 2025E [3][18] - **Inverter Shipment Volume**: Grew by 6% yoy in 9M25, with a sales mix from China dropping to 40% [4][23] - **Profit Margins**: Gross profit margin improved by 3.6 percentage points yoy to 34.9% in 9M25, benefiting from a higher overseas sales mix [15][18] Market Outlook - **ESS Demand Growth**: Expected to grow by 43-79% yoy in 2025E and 40-50% yoy in 2026E, driven by factors such as improved financial feasibility in China and increased demand in Europe and the US [3][20] - **Global Solar Installation**: Increased by over 30% yoy to 380 GW in 9M25, with significant contributions from both domestic and international markets [16][17] Strategic Initiatives - **AIDC Business Development**: Sungrow plans to launch new products and small-scale shipments in 2026E, which could serve as a positive catalyst for share price [5][27] - **R&D Investment**: Increased R&D expenses by 32.2% yoy to Rmb3,140 million in 9M25, focusing on solar products and ESS [15] Financial Projections - **Net Profit Forecast**: Revised upwards by 3-11% for 2025-27E, with a target price increase of 25% to Rmb200/share [28][30] - **Valuation Ratios**: The company is projected to have a P/E ratio of 17.6x in 2026E, indicating an undemanding valuation [1][6] Risks and Considerations - **Battery Supply Concerns**: While there are concerns about rising battery unit costs, the company expects costs to remain steady in 2026E due to secured supply [26] - **EPC Revenue Decline**: EPC revenue dropped by 13.1% yoy to Rmb11.3 billion in 9M25, impacted by policy changes [15] Conclusion Sungrow Power Supply demonstrates strong financial performance with significant growth in net profit and revenue, particularly in the ESS segment. The company is well-positioned for future growth driven by increasing global demand for solar and energy storage solutions, alongside strategic initiatives in new business areas.

Summary of OmniVision (603501.SS) Conference Call Company Overview - **Company**: OmniVision (formerly known as Will Semi) - **Industry**: Automotive and smartphone Camera Image Sensors (CIS) Key Points Financial Performance - **3Q25 Revenue**: Rmb7.8 billion, up 15% YoY, but below estimates by 10% and Bloomberg consensus by 6% [3][4] - **Gross Margin**: 30.3%, in line with expectations [3][4] - **Operating Profit**: Increased by 21% YoY [3] - **Net Income**: Rmb1.4 billion, 12% below estimates [3] Product Development - **Automotive CIS Expansion**: Launched new 8Mpx automotive CIS product (OX08D20) for ADAS/AD systems in October 2025, featuring compact size and lower power consumption [2] - **In-Cabin Monitoring**: Released new 5Mpx HDR sensor for Driving Monitoring System (DMS), improving algorithm accuracy in extreme conditions [2] Market Outlook - **Smartphone CIS Recovery**: Anticipated sequential recovery in smartphone CIS growth in 2H25 due to new product launches [1] - **High-End Product Mix**: Positive outlook on the shift towards high-end smartphone CIS and increased automotive CIS contributions for smart driving features [1] Earnings Revision - **Earnings Forecast**: Revised down by 8% for 2025-27E due to lower smartphone CIS demand, but gross margin expectations were slightly increased [4][9] - **Target Price**: Updated to Rmb186.3, based on a 33x target 2026E P/E multiple [9][14] Risks - **Potential Risks**: 1. Slower new product expansion and product mix improvement in smartphone CIS [15] 2. Weaker-than-expected demand in the China smartphone market [15] 3. Trade tensions impacting business [15] Valuation Metrics - **Market Cap**: Rmb164.4 billion / $23.2 billion [15] - **EPS Forecast**: Expected to be Rmb3.71 in 2025E, down from previous estimates [9][15] Conclusion - **Investment Recommendation**: Maintain Buy rating based on long-term growth potential and product mix improvements [1][14]

Summary of Mindray Bio-Medical Conference Call Company Overview - **Company**: Mindray Bio-Medical (300760.SZ) - **Industry**: China Healthcare - **Current Stock Price**: Rmb222.83 (as of October 29, 2025) - **Market Capitalization**: Rmb270,892 million - **Price Target**: Rmb270.00, indicating a potential upside of 21% from the current price [5][69] Financial Performance - **3Q Revenue**: Increased by 1.5% year-over-year (y/y) but was 5% below Morgan Stanley estimates [7] - **Operating Profit**: Decreased by 14.9% y/y, 4% below estimates [7] - **Recurring Profit**: Declined by 17.8% y/y, impacted by foreign exchange losses and higher taxes [7] - **Gross Profit Margin (GPM)**: Increased by 0.7 percentage points y/y to 61.3% [4] - **Operating Profit Margin (OPM)**: Decreased by 6.7 percentage points y/y to 35.1% [4] - **Quarterly Dividend**: Declared at Rmb1.64 billion, maintaining a stable payout ratio of 65.2% [7] Segment Performance - **IVD (In Vitro Diagnostics)**: - Revenue decreased by 2.8% y/y; China sales down approximately 10%, while overseas sales increased by 11% [7] - **PMLS (Patient Monitoring and Life Support)**: - Revenue increased by 2.6% y/y; China sales down approximately 22%, overseas sales up by 14% [7] - **Imaging**: - Revenue remained flat y/y; China sales down approximately 11%, overseas sales up by 9% [7] - **Overseas Sales**: Surpassed 50% of total group revenue during the first nine months of 2025, with significant contributions from the EU (+29%) and CIS/Middle East (+18%) [7] Market Outlook - **4Q Growth Expectations**: Anticipated to accelerate off a low base, with a focus on improving sales through tenders translating into actual sales [2] - **Future Projections**: - EPS estimates for 2025: Rmb8.44, with a gradual increase projected through 2027 [5] - Revenue projections for 2025: Rmb36,183 million, increasing to Rmb44,073 million by 2027 [5] Risks and Opportunities - **Upside Risks**: - Stronger tailwinds from equipment trade-in policies - Faster-than-expected ramp-up in key product sales - Potential for accretive mergers and acquisitions [12] - **Downside Risks**: - Prolonged negative impacts from policy headwinds - Trade tensions affecting sales and earnings - Failure to generate synergies from M&A activities [12] Conclusion - **Investment Rating**: Overweight, with an attractive industry view [5][69] - **Valuation Methodology**: Discounted cash flow model with a WACC of 8.8% and a perpetual growth rate of 3.0% [10]

Summary of Zhejiang Dingli Co Ltd. Conference Call Company Overview - **Company**: Zhejiang Dingli Co Ltd. (603338.SS) - **Industry**: Aerial Working Platforms (AWP) Key Financial Results - **3Q25 Net Profit**: Rmb542 million, down 15% year-over-year (yoy) and 7% below Goldman Sachs estimates [1][5] - **3Q25 Revenue**: Rmb2.34 billion, up 3% yoy but 4% below estimates, attributed to slower sales recognition in North America [5][7] - **Gross Profit Margin (GPM)**: 36.1%, down 1.5 percentage points yoy and 0.9 percentage points below estimates [5][7] - **Operating Expenses**: Increased by 21% yoy, higher than expected due to impairment losses [5][7] - **EBIT**: Rmb623 million, down 7% yoy and 12% below estimates [5][7] - **Operating Cash Flow**: Rmb355 million, slightly up from Rmb338 million in 2Q25 but down from Rmb590 million in 3Q24 [5][7] Market Dynamics - **Sales Breakdown**: Discussion expected on regional sales performance and factors contributing to slower growth [2] - **US Pricing Negotiations**: Updates anticipated regarding pricing strategies in the US market [2] - **Global Trade Environment**: The company has successfully navigated trade restrictions, optimizing its competitive landscape [8] Investment Thesis - **Long-term Growth Potential**: The AWP market in China is under-penetrated, with rising labor costs and a construction worker shortage driving demand [7] - **Product Differentiation**: Focus on higher-ASP boom lifts and electrification technology positions Dingli favorably against domestic competitors [7] - **International Competitiveness**: Enhanced competitiveness in overseas markets due to product differentiation [8] Risks and Challenges - **Global Construction Activity**: Weaker-than-expected construction activities could impact performance [10] - **Competition**: Intensifying competition in the AWP market may pose risks [10] - **Trade Tensions**: Escalating US-China trade tensions could lead to unfavorable tariffs, affecting approximately 30% of Dingli's sales [10] Price Target and Valuation - **12-Month Price Target**: Rmb64.00, implying a 22% upside from the current price of Rmb52.47 [12] - **Valuation Metrics**: Target EV/DACF multiple of 10.0x reflects uncertainties in global trade [9] Conclusion Zhejiang Dingli Co Ltd. is positioned for long-term growth in the AWP market, supported by product differentiation and a favorable competitive landscape. However, it faces risks from global construction activity, competition, and trade tensions. The current financial results indicate challenges in revenue growth and profitability, necessitating close monitoring of market dynamics and operational performance.

Summary of ZTE (0763.HK) Conference Call Company Overview - **Company**: ZTE Corporation (0763.HK) - **Industry**: Telecommunications and Information Technology Key Financial Highlights - **3Q25 Revenues**: Rmb29 billion, up 5% YoY attributed to growth in enterprise, consumer, and overseas telecom businesses [1][2] - **Server and Storage Growth**: Achieved +250% YoY growth in 9M25, contributing to 25% of total revenues [1] - **Gross Margin (GM)**: Reported at 25.9%, lower than the expected 31.0%, due to a short-term revenue mix shift [1][2] - **Net Income**: Rmb264 million, significantly lower than consensus estimates [1][2] - **Operating Profit**: Reported at -Rmb565 million, a decline of 127% compared to expectations [2] - **Pre-tax Income**: Rmb239 million, down 91% from consensus [2] Earnings Revisions - **2025E EPS Estimates**: Revised down by 1% to reflect 3Q25 earnings, with expectations for recovery in 4Q25 [2][3] - **Future Revenue Projections**: - 2025E Revenue: Rmb147.604 billion - 2026E Revenue: Rmb166.111 billion - 2027E Revenue: Rmb181.482 billion [3] Valuation and Price Targets - **Target Price for H-share**: HK$43.6, based on a 19.2x 2026E P/E [5][16] - **Target Price for A-share**: Rmb67.6, based on a 32.4x 2026E P/E [5][16] - **Current Price**: HK$39.56 for H-share, Rmb49.39 for A-share, indicating potential upside of 10.2% and 36.9% respectively [19] Risks and Considerations - **Key Risks**: - Demand fluctuations in telecom infrastructure and 5G BTS building in China - Market share gains in China - Margin improvements [17] - **Non-operating Gains/Losses**: Historical range from a loss of Rmb11 billion to a gain of Rmb1.9 billion, which could impact estimates [17] Industry Dynamics - **Revenue Mix**: Increasing contribution from non-telecom business segments, indicating diversification [6] Conclusion - Despite short-term challenges reflected in 3Q25 results, ZTE is expected to achieve sustainable growth driven by its second curve business development. The company maintains a neutral rating with a fair valuation outlook [1][5]