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ZTE
(0763)
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Rating:46Neutral
Price Target:
HK$18.50
▼(-21.54% Downside)
Action:Reiterated
Date:10/27/26
The score is driven primarily by weakening financial quality—sharp margin compression, lower ROE, higher leverage, and weaker cash conversion—despite continued revenue growth. Technicals add pressure given the pronounced downtrend and negative MACD, with oversold signals only suggesting a potential near-term pause. Valuation further weighs on the score due to a high P/E that is difficult to justify amid declining profitability, partially offset by a modest dividend yield.
Positive Factors
Revenue Growth
Continued revenue growth shows that ZTE is still expanding sales across its ICT business despite weaker profitability. Sustained demand for network equipment, infrastructure and related solutions can support scale, customer relationships and future earnings recovery.
Negative Factors
Margin Compression
The sharp decline in gross and net margins indicates that revenue growth is translating into substantially less profit. If this pressure persists, ZTE will have reduced capacity to fund research, compete on pricing and convert sales growth into durable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Continued revenue growth shows that ZTE is still expanding sales across its ICT business despite weaker profitability. Sustained demand for network equipment, infrastructure and related solutions can support scale, customer relationships and future earnings recovery.
Read all positive factors
ZTE (0763) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$146.64B
Dividend Yield2.4%
Average Volume (3M)6.40M
Price to Earnings (P/E)30.8
Beta (1Y)1.15
Revenue Growth19.98%
EPS Growth-20.48%
CountryHK
Employees65,095
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.89
Shares Outstanding755,502,560
10 Day Avg. Volume7,975,541
30 Day Avg. Volume6,402,686
Financial Highlights & Ratios
PEG Ratio-0.62
Price to Book (P/B)1.55
Price to Sales (P/S)0.87
P/FCF Ratio59.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$26.16Price Target Upside10.95% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)1.2
Revenue Forecast (FY)HK$149.85B
ZTE Business Overview & Revenue Model
Company Description
ZTE Corp. engages in the design, development, manufacture, and sale of information and telecommunication technology products. It operates through the following segments: Carriers’ Network, Consumer Business, and Government and Corporate Business. ...
How the Company Makes Money
ZTE generates revenue primarily by selling ICT products and solutions to three main customer groups: (1) telecom operators, (2) enterprise and government customers, and (3) consumers. For telecom operators, ZTE earns money from providing carrier-g...
ZTE Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
55
Neutral
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 149.54B | 133.90B | 121.30B | 124.25B | 122.95B | 114.52B |
| Gross Profit | 38.28B | 40.50B | 45.99B | 50.80B | 45.73B | 40.36B |
| EBITDA | 11.97B | 7.66B | 17.65B | 18.27B | 15.08B | 14.57B |
| Net Income | 4.35B | 5.62B | 8.42B | 9.33B | 8.08B | 6.81B |
Balance Sheet | ||||||
| Total Assets | 246.70B | 218.20B | 207.32B | 200.96B | 180.95B | 168.76B |
| Cash, Cash Equivalents and Short-Term Investments | 46.58B | 51.68B | 57.65B | 78.70B | 56.86B | 52.07B |
| Total Debt | 59.42B | 80.62B | 53.06B | 56.11B | 46.54B | 40.36B |
| Total Liabilities | 168.53B | 142.53B | 134.21B | 132.63B | 121.41B | 115.48B |
| Stockholders Equity | 78.02B | 75.46B | 72.81B | 68.01B | 58.64B | 51.48B |
Cash Flow | ||||||
| Free Cash Flow | 1.55B | 1.97B | 7.47B | 13.40B | 2.63B | 10.04B |
| Operating Cash Flow | 5.18B | 5.76B | 11.48B | 17.41B | 7.58B | 15.72B |
| Investing Cash Flow | -18.45B | -8.64B | -28.67B | -20.90B | -1.29B | -10.59B |
| Financing Cash Flow | 1.59B | 516.33M | -5.82B | 7.37B | 1.45B | 2.78B |
ZTE Technical Analysis
Negative
23.58
Price Trends
22.13
Negative
23.49
Negative
24.53
Negative
Market Momentum
-0.80
Negative
44.57
Neutral
63.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0763, the sentiment is Negative. The current price of 23.58 is above the 20-day moving average (MA) of 20.39, above the 50-day MA of 22.13, and below the 200-day MA of 24.53, indicating a bearish trend. The MACD of -0.80 indicates Negative momentum. The RSI at 44.57 is Neutral, neither overbought nor oversold. The STOCH value of 63.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0763.
ZTE Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | HK$44.18B | 14.61 | 10.42% | 0.92% | 15.86% | 24.46% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | HK$2.84B | 101.11 | 0.86% | 0.29% | 4.27% | ― | |
57 Neutral | HK$173.40B | 64.53 | 30.10% | 1.55% | 38.70% | 468.60% | |
53 Neutral | HK$635.13M | -19.68 | -2.26% | 13.33% | -16.00% | -811.76% | |
49 Neutral | HK$9.57B | 23.07 | 3.67% | 2.10% | 17.28% | 223.90% | |
46 Neutral | HK$146.64B | 30.82 | 5.67% | 2.40% | 19.98% | -20.48% |
* Technology Sector Average
HK:0763
ZTE
19.71
-14.69
-42.70%
HK:2018
AAC Technologies Holdings
37.86
-1.78
-4.48%
HK:2342
Comba Telecom Systems Holdings
0.91
-2.20
-70.72%
HK:2038
FIH Mobile
12.87
-6.13
-32.27%
HK:2000
SIM Technology Group
0.31
-0.07
-17.57%
HK:6869
Yangtze Optical Fibre and Cable Joint Stock Co
101.20
63.13
165.85%
ZTE Corporate Events
ZTE posts strong Q3 revenue surge but nine-month earnings soften
Oct 26, 2026
ZTE Corporation is a Shenzhen and Hong Kong-listed telecommunications equipment and technology company that provides network infrastructure, mobile devices and related services to carriers and enterprise customers. The group operates under PRC Acc...
ZTE Board Sets Late‑October Meeting to Approve Q3 2026 Results
Oct 13, 2026
ZTE Corporation has convened a meeting of its Board of Directors for 26 October 2026 in Shenzhen, where it will review and approve the group’s third‑quarter results for the nine months ended 30 September 2026. The session will also add...
ZTE Publishes Unaudited 2026 Interim Results and Withholds Interim Payout
Aug 21, 2026
ZTE has released its unaudited interim results for the six months ended 30 June 2026, prepared under PRC Accounting Standards for Business Enterprises. The board confirmed the truthfulness and completeness of the disclosure, approved the report at...
ZTE board sets August meeting to approve 2026 interim results
Aug 11, 2026
ZTE Corporation has scheduled a board meeting for 21 August 2026 in Shenzhen to review and approve the interim results for the six months ended 30 June 2026. The board will also consider the publication of these results and address any other busin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.