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ZTE
(0763)
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Rating:45Neutral
Price Target:
HK$23.50
▼(-0.34% Downside)
Action:Reiterated
Date:08/22/26
The score is held back primarily by financial performance: profitability has compressed sharply and cash generation deteriorated, with free cash flow not covering net income while leverage increased. Technicals add further pressure, with the stock trading below key moving averages and negative MACD. Valuation provides only limited support given a high P/E and modest dividend yield.
Positive Factors
Resilient Revenue Growth
Positive revenue growth indicates continued demand for ZTE’s network infrastructure, ICT solutions and devices. Sustained sales expansion provides a foundation for operating leverage if the company can stabilize margins and improve cash conversion.
Negative Factors
Structural Margin Compression
Sales growth is not translating efficiently into earnings, as gross and net margins have declined sharply. Persistent pricing pressure, an unfavorable mix or higher delivery costs could constrain future profit recovery and reduce operating resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient Revenue Growth
Positive revenue growth indicates continued demand for ZTE’s network infrastructure, ICT solutions and devices. Sustained sales expansion provides a foundation for operating leverage if the company can stabilize margins and improve cash conversion.
Read all positive factors
ZTE (0763) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$173.20B
Dividend Yield2.02%
Average Volume (3M)11.39M
Price to Earnings (P/E)48.1
Beta (1Y)1.40
Revenue Growth11.81%
EPS Growth-55.08%
CountryHK
Employees65,095
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.69
Shares Outstanding755,502,560
10 Day Avg. Volume7,688,485
30 Day Avg. Volume11,391,261
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$25.68Price Target Upside8.90% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)1.13
Revenue Forecast (FY)HK$148.35B
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 primarily makes money by selling telecom network equipment and related solutions to mobile and fixed-line operators and other large-scale network customers, and by selling smart devices to consumers and channel partners. Key revenue streams ge...
ZTE Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 139.68B | 133.90B | 121.30B | 124.25B | 122.95B | 114.52B |
| Gross Profit | 35.42B | 40.50B | 45.99B | 50.80B | 45.73B | 40.36B |
| EBITDA | 6.31B | 7.66B | 17.65B | 18.27B | 15.08B | 14.57B |
| Net Income | 3.30B | 5.62B | 8.42B | 9.33B | 8.08B | 6.81B |
Balance Sheet | ||||||
| Total Assets | 240.88B | 218.20B | 207.32B | 200.96B | 180.95B | 168.76B |
| Cash, Cash Equivalents and Short-Term Investments | 64.66B | 51.68B | 57.65B | 78.70B | 56.86B | 52.07B |
| Total Debt | 93.79B | 80.62B | 53.06B | 56.11B | 46.54B | 40.36B |
| Total Liabilities | 163.77B | 142.53B | 134.21B | 132.63B | 121.41B | 115.48B |
| Stockholders Equity | 76.96B | 75.46B | 72.81B | 68.01B | 58.64B | 51.48B |
Cash Flow | ||||||
| Free Cash Flow | 1.41B | 1.97B | 7.47B | 13.40B | 2.63B | 10.04B |
| Operating Cash Flow | 5.25B | 5.76B | 11.48B | 17.41B | 7.58B | 15.72B |
| Investing Cash Flow | -7.53B | -8.64B | -28.67B | -20.90B | -1.29B | -10.59B |
| Financing Cash Flow | -599.53M | 516.33M | -5.82B | 7.37B | 1.45B | 2.78B |
ZTE Technical Analysis
Negative
23.58
Price Trends
24.24
Negative
24.76
Negative
25.89
Negative
Market Momentum
-0.33
Positive
42.68
Neutral
25.98
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 below the 20-day moving average (MA) of 24.14, below the 50-day MA of 24.24, and below the 200-day MA of 25.89, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 42.68 is Neutral, neither overbought nor oversold. The STOCH value of 25.98 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$48.85B | 16.69 | 10.42% | 0.81% | 15.86% | 24.46% | |
65 Neutral | HK$246.72B | 89.34 | 30.10% | 0.21% | 38.70% | 468.60% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | HK$551.83M | -16.77 | -2.26% | 13.33% | -16.00% | -811.76% | |
52 Neutral | HK$2.28B | 81.11 | 0.86% | 0.36% | 4.27% | ― | |
48 Neutral | HK$12.23B | 29.51 | 3.67% | 1.64% | 17.28% | 223.90% | |
45 Neutral | HK$173.20B | 48.13 | 4.35% | 2.02% | 11.81% | -55.08% |
* Technology Sector Average
HK:0763
ZTE
23.40
-8.84
-27.41%
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AAC Technologies Holdings
42.96
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0.73
-2.17
-74.82%
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0.44
2.77%
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SIM Technology Group
0.27
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-13.11%
HK:6869
Yangtze Optical Fibre and Cable Joint Stock Co
159.40
114.50
254.99%
ZTE Corporate Events
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...
ZTE Cuts Convertible Bond Conversion Price After 2025 Final Dividend
Jun 29, 2026
ZTE has announced an adjustment to the conversion price of its RMB3.584 billion zero-coupon USD-settled convertible bonds due 2030, triggered by the distribution of its 2025 final dividend to H-shareholders. The final dividend is set at RMB4.11 pe...
ZTE Sets Final Dividend and Outlines Tax Treatment for Overseas H Shareholders
Jun 29, 2026
ZTE Corporation will distribute a final dividend of RMB4.11 before tax per 10 shares, equivalent to RMB0.411 per share, to shareholders on its H share register as of 29 June 2026. The dividend will be paid in Renminbi for A shares and in Hong Kong...
ZTE Declares Final 2025 Dividend and Details Tax Treatment for H-Shareholders
Jun 29, 2026
ZTE Corporation has declared a final ordinary cash dividend of RMB 4.11 per 10 shares for the financial year ended 31 December 2025, with shareholder approval obtained on 17 June 2026. The dividend for Hong Kong shareholders will be paid in HKD at...
ZTE’s 2025 AGM Clears All Resolutions With Hybrid Voting
Jun 17, 2026
ZTE Corporation reported that its 2025 Annual General Meeting was held on 17 June 2026 in Shenzhen, combining on-site and online voting for its A and H shareholders. The meeting was convened by the board, chaired by Fang Rong, and was confirmed to...
ZTE Sets Final 2025 Dividend and Details Tax Terms for H Shareholders
May 27, 2026
ZTE Corporation has declared a final ordinary cash dividend of RMB 4.11 per 10 shares for the financial year ended 31 December 2025, subject to shareholder approval on 17 June 2026. The company’s H share register will close from 24 to 29 Jun...
ZTE Sets 2025 AGM to Seek Approval for Major Hedging and Treasury Plans
May 27, 2026
ZTE Corporation has called its 2025 Annual General Meeting for 17 June 2026 in Shenzhen, where shareholders will review the 2025 annual report, financial accounts, and management work reports. The agenda signals a focus on strengthening financial ...
ZTE Sets 2025 AGM Date and Closes H Share Register for Voting Eligibility
May 25, 2026
ZTE Corporation has scheduled its 2025 Annual General Meeting for 17 June 2026 and will close its H share register from 9 June to 17 June 2026 to determine which shareholders are entitled to attend and vote. H shareholders must complete share tran...
ZTE Sets Final 2025 Cash Dividend and Conversion Deadline for Bondholders
May 25, 2026
ZTE Corporation has announced a proposed final cash dividend of RMB 4.11 per 10 shares for the financial year ended 31 December 2025, subject to shareholder approval on 17 June 2026. Key dates for Hong Kong shareholders, including ex-dividend date...
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.