ZTE (0763) AI Stock Analysis

• Market Cap: $207.73B
• Dividend Yield: 2.07%
• Average Volume (3M): 39.20M
• Price to Earnings (P/E): 24.6
• Beta (1Y): 1.28
• Revenue Growth: 5.14%
• EPS Growth: -38.37%
• Country: HK
• Employees: 68,375
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.07
• Shares Outstanding: 755,502,560
• 10 Day Avg. Volume: 61,948,166
• 30 Day Avg. Volume: 39,203,389
• PEG Ratio: -1.27
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 14.65
• Enterprise Value/Market Cap: 0.69
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: 12.32
• 1Y Price Target: $37.31
• Price Target Upside: 18.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: HK$38.00 ▲(21.02% Upside)

ZTE's strong financial performance is the most significant factor, supported by robust profitability and a stable balance sheet. However, technical indicators suggest potential bearish momentum, and the high P/E ratio indicates possible overvaluation. Cash flow management remains a concern, impacting the overall score.

Positive Factors

Revenue Growth

Stable revenue growth indicates a sustained demand for ZTE's products and services, supporting long-term business expansion and market presence.

Profitability

High profitability margins reflect efficient operations and pricing power, which can support reinvestment in growth and innovation.

Balance Sheet Health

A strong balance sheet with manageable debt levels provides financial stability and flexibility for strategic investments and growth.

Negative Factors

Cash Flow Management

Suboptimal cash flow efficiency may limit ZTE's ability to fund operations and growth initiatives, posing a risk to long-term financial health.

Declining Free Cash Flow

A decline in free cash flow could constrain ZTE's capacity to invest in new projects or return capital to shareholders, affecting future growth.

Earnings Growth

Negative earnings growth suggests challenges in maintaining profitability, which could impact investor confidence and long-term valuation.

ZTE Business Overview & Revenue Model

Company Description

ZTE Corporation provides integrated communication information solutions in the People's Republic of China, rest of Asia, Africa, Europe, the United States, and Oceania. It operates through three segments: Carriers' Networks, Government and Corporate Business, and Consumer Business. The Carriers' Network segment provides wireless access, wireline access, bearer networks, core networks, telecommunication software systems and services, and other innovative technologies and product solutions. The Consumer Business segment offers smart phones, mobile data terminals, home information terminals, and innovative fusion terminals, as well as related software application and value-added services. The Government and Corporate Business segment focuses on providing informatization solutions for the government and corporations through the application of products, such as communications networks, Internet of Things, big data, and cloud computing. The company was founded in 1985 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

ZTE generates revenue through multiple streams, primarily by selling telecommunications equipment and providing network solutions to telecom operators and businesses. The company's revenue model includes the sale of hardware such as base stations, routers, and switches, as well as software and services related to network planning, deployment, and maintenance. Additionally, ZTE earns income from its mobile devices, including smartphones and tablets, which are sold in various markets. Significant partnerships with telecom operators and collaborations with government and enterprise clients further enhance its revenue, while ongoing investments in research and development help ZTE to innovate and adapt to the evolving telecommunications landscape.

ZTE Financial Statement Overview

Summary

ZTE demonstrates strong profitability with a Gross Profit Margin of 35.9% and a Net Profit Margin of 6.6% for TTM. The balance sheet reflects a stable financial structure with a manageable Debt-to-Equity Ratio of 0.75. However, cash flow management presents a moderate concern, with declining free cash flow impacting liquidity.

Income Statement

ZTE demonstrates strong profitability with a Gross Profit Margin of 35.9% and a Net Profit Margin of 6.6% for TTM (Trailing-Twelve-Months). The EBIT Margin stands at 7.3%, while EBITDA Margin is at 10.0% indicating efficient operations. Revenue growth is modest, with a slight increase from 2024 to TTM. The company maintains stable profitability, although there was a slight decline in gross profit margin from 2023 to TTM.

Balance Sheet

The balance sheet reflects a stable financial structure with an Equity Ratio of 33.2% and a manageable Debt-to-Equity Ratio of 0.75 in TTM. ROE is strong at 11.3%, showcasing efficient use of equity to generate profits. The company maintains a healthy balance between debt and equity, though total debt has increased over the years, which could impact future leverage.

Cash Flow

Operating Cash Flow to Net Income Ratio is 0.49 in TTM, indicating room for improvement in cash generation efficiency. The Free Cash Flow to Net Income Ratio stands at 0.63, showing positive but moderate cash flow health. Free Cash Flow decreased from the previous year, indicating potential cash flow management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	130.36B	121.30B	124.25B	122.95B	114.52B	101.45B
Gross Profit	43.92B	45.99B	50.80B	45.73B	40.36B	32.07B
EBITDA	11.70B	17.65B	18.27B	15.08B	14.57B	10.53B
Net Income	7.75B	8.42B	9.33B	8.08B	6.81B	4.28B
Balance Sheet
Total Assets	216.31B	207.32B	200.96B	180.95B	168.76B	150.63B
Cash, Cash Equivalents and Short-Term Investments	53.93B	57.65B	78.70B	56.86B	52.07B	36.70B
Total Debt	60.26B	53.06B	56.11B	46.54B	40.36B	36.00B
Total Liabilities	141.20B	134.21B	132.63B	121.41B	115.48B	104.51B
Stockholders Equity	74.84B	72.81B	68.01B	58.64B	51.48B	43.30B
Cash Flow
Free Cash Flow	495.00M	7.47B	13.40B	2.63B	10.04B	3.76B
Operating Cash Flow	1.30B	11.48B	17.41B	7.58B	15.72B	10.23B
Investing Cash Flow	-24.96B	-28.67B	-20.90B	-1.29B	-10.59B	-7.08B
Financing Cash Flow	-2.77B	-5.82B	7.37B	1.45B	2.78B	-289.90M

ZTE Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 31.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0763, the sentiment is Neutral. The current price of 31.4 is below the 20-day moving average (MA) of 38.53, below the 50-day MA of 36.21, and above the 200-day MA of 27.75, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 39.59 is Neutral, neither overbought nor oversold. The STOCH value of 4.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0763.

ZTE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0763	65 Neutral	$207.73B	24.59	7.73%	2.07%	5.14%	-38.37%
1473	63 Neutral	HK$498.10M	13.75	13.21%	2.35%	53.77%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1617	61 Neutral	HK$174.01M	2.66	7.40%	―	-9.34%	605.26%
6869	55 Neutral	$48.82B	41.14	4.79%	0.87%	14.38%	-41.96%
2342	46 Neutral	$8.07B	-20.41	-10.70%	0.23%	-13.99%	-32.74%
1613	46 Neutral	HK$109.49M	-2.96	-29.38%	―	86.85%	-36.65%

ZTE Corporate Events

ZTE Corporation Reports Mixed Q3 2025 Results

ZTE Corporation Class H, a leading global provider of telecommunications equipment and network solutions, operates primarily in the technology sector, offering a wide range of products and services including wireless, access & bearer, and core networks. In its latest earnings report for the third quarter of 2025, ZTE Corporation reported a mixed financial performance with a notable increase in revenue but a significant decline in net profit. The company’s revenue for the first nine months of 2025 reached 100.52 billion yuan, marking an 11.63% increase compared to the same period last year. However, net profit attributable to shareholders fell by 32.69% to 5.32 billion yuan, and net profit excluding non-recurring items dropped by 43.77% to 3.88 billion yuan. The company’s operating cash flow also saw a significant decrease of 77.92% year-over-year, highlighting challenges in cash management. Despite the decline in profitability, ZTE’s total assets grew by 3.54% to 214.66 billion yuan, and shareholder equity increased by 3.14% to 75.09 billion yuan, indicating a stable financial position. Looking ahead, ZTE Corporation remains focused on optimizing its business operations and enhancing its market position, as it navigates the complex landscape of the telecommunications industry.

ZTE Reports Revenue Growth Amidst Profit Decline in Q3 2025

ZTE Corporation has released its third quarterly report for 2025, highlighting a notable increase in operating revenue by 11.63% over the first nine months of the year compared to the same period last year. However, the company experienced a significant decline in net profit attributable to ordinary shareholders, which fell by 32.69%. The report also indicates a decrease in net cash flows from operating activities by 77.92%, reflecting challenges in maintaining profitability despite revenue growth. These financial results suggest that while ZTE is expanding its revenue base, it faces operational challenges that may impact its financial stability and stakeholder confidence.

The most recent analyst rating on (HK:0763) stock is a Buy with a HK$42.00 price target. To see the full list of analyst forecasts on ZTE stock, see the HK:0763 Stock Forecast page.

ZTE Corporation Schedules Board Meeting to Approve Q3 Results

ZTE Corporation has announced that its Board of Directors will convene a meeting on October 28, 2025, in Shenzhen, China. The meeting’s agenda includes the approval and publication of the company’s third-quarter results for the period ending September 30, 2025, and addressing any other business matters. This announcement indicates ZTE’s ongoing commitment to transparency and regular financial reporting, which is crucial for maintaining investor confidence and ensuring compliance with market regulations.

The most recent analyst rating on (HK:0763) stock is a Buy with a HK$44.00 price target. To see the full list of analyst forecasts on ZTE stock, see the HK:0763 Stock Forecast page.

ZTE Corporation Reports Revenue Growth Amidst Profit Decline

ZTE Corporation, a leading global provider of telecommunications equipment and network solutions, operates primarily in the ICT industry, offering end-to-end products and solutions for carriers, government, corporate, and consumer sectors. In its latest earnings report for the first half of 2025, ZTE Corporation announced a 14.51% increase in operating revenue, reaching RMB 71.55 billion, despite a decline in net profit attributable to shareholders by 11.77% to RMB 5.06 billion. The company highlighted its strategic focus on technological innovation, particularly in 5G, AI, and digital infrastructure, which are driving its growth and market share expansion. Key financial metrics showed a robust increase in total assets by 4.33% to RMB 216.31 billion, although net cash flows from operating activities decreased significantly by 81.44%. Looking ahead, ZTE Corporation remains committed to leveraging its technological advancements and strategic partnerships to enhance its market position and drive sustainable growth in the rapidly evolving digital economy.

ZTE Announces 2025 Interim Results with Stable Performance

ZTE Corporation has announced its unaudited interim results for the first half of 2025, confirming the accuracy and completeness of the disclosed information. The report, approved by the Board of Directors, indicates no profit distribution or capital reserve conversion for the interim period. The financial reports were prepared under PRC ASBEs and highlight the company’s commitment to transparency and regulatory compliance. This announcement underscores ZTE’s stable operational performance and strategic focus, potentially impacting stakeholders’ confidence and market positioning.

The most recent analyst rating on (HK:0763) stock is a Buy with a HK$40.00 price target. To see the full list of analyst forecasts on ZTE stock, see the HK:0763 Stock Forecast page.

ZTE Corporation Strengthens Governance with New Audit Committee

ZTE Corporation has established an Audit Committee under its Board of Directors to enhance corporate governance and ensure effective oversight of management. The committee, composed mainly of independent non-executive directors, is tasked with examining the company’s financial information, supervising internal and external audits, and assessing internal controls. This move aims to strengthen ZTE’s financial oversight and transparency, potentially improving its market position and stakeholder confidence.

The most recent analyst rating on (HK:0763) stock is a Buy with a HK$40.00 price target. To see the full list of analyst forecasts on ZTE stock, see the HK:0763 Stock Forecast page.

ZTE Corporation Schedules Board Meeting to Approve Interim Results

ZTE Corporation has announced a board meeting scheduled for August 28, 2025, to approve and publish the interim results for the first half of the year. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.

The most recent analyst rating on (HK:0763) stock is a Hold with a HK$25.00 price target. To see the full list of analyst forecasts on ZTE stock, see the HK:0763 Stock Forecast page.

ZTE Completes Issuance of Convertible Bonds to Boost R&D

ZTE Corporation has successfully completed the issuance of RMB3,584 million zero-coupon USD-settled convertible bonds due 2030, with net proceeds amounting to approximately US$494.30 million. The funds raised will be directed towards research and development investments in computility products, potentially strengthening ZTE’s technological capabilities and market competitiveness. The bonds are expected to be listed on the Hong Kong Stock Exchange, reflecting ZTE’s strategic financial management and commitment to innovation.

The most recent analyst rating on (HK:0763) stock is a Hold with a HK$25.00 price target. To see the full list of analyst forecasts on ZTE stock, see the HK:0763 Stock Forecast page.