External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>ZTE announced 1H24 results. Revenue increased by 2.9% YoY to RMB62.5bn, while net profit grew by 4.8% YoY to RMB5.7bn in 1H2.</li><li>Despite the headwinds from declining capex of domestic telcos for ZTE’s carrier business, non-carrier businesses managed to grew double-digits (14.3% and 56.1% YoY growth in consumer and govt/enterprise segments).</li><li>On a quarterly basis, 2Q24 revenue increased by 1.1% YoY / 4.4% QoQ, while net profit increased by 5.7% YoY / 9.1% QoQ.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZTE announced 1H24 results. Revenue increased by 2.9% YoY to RMB62.5bn, while net profit grew by 4.8% YoY to RMB5.7bn in 1H2.Despite the headwinds from declining capex of domestic telcos for ZTE’s carrier business, non-carrier businesses managed to grew double-digits (14.3% and 56.1% YoY growth in consumer and govt/enterprise segments).On a quarterly basis, 2Q24 revenue increased by 1.1% YoY / 4.4% QoQ, while net profit increased by 5.7% YoY / 9.1% QoQ.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>ZTE released its FY23 results. Revenue grew by 1.1% YoY to RMB124bn, in line with consensus and 3% higher than our forecast.</li><li>Net profit increased by 15.4% YoY to RMB9.3bn, 5% lower than consensus and in line with our forecasts.</li><li>Gross margin for 2023 was 41.5%, representing a 434bps increase from FY22. NPM showed a similar trend, reaching 7.5% in FY23 from 4.2%/5.9%/6.6% in FY20-22.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZTE released its FY23 results. Revenue grew by 1.1% YoY to RMB124bn, in line with consensus and 3% higher than our forecast.Net profit increased by 15.4% YoY to RMB9.3bn, 5% lower than consensus and in line with our forecasts.Gross margin for 2023 was 41.5%, representing a 434bps increase from FY22. NPM showed a similar trend, reaching 7.5% in FY23 from 4.2%/5.9%/6.6% in FY20-22.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZTE (000063 CH) - Improved Margins in 2023

<ul><li>As the Mobile World Congress (MWC) unfolded in Barcelona on Monday, AI/5G+6G innovations emerged as a dominant theme, with leading suppliers in the telecom industry showcasing their latest technologies.</li><li>ZTE's A-share (000063 CH) and H-share (763 HK) prices surged by 10.0% and 10.6%, respectively, on Tuesday, buoyed by the company's direct involvement in 6G development.</li><li>Maintain BUY on ZTE (000063 CH/763 HK) with unchanged TPs at RMB36.9 and HK$27.4, respectively. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

As the Mobile World Congress (MWC) unfolded in Barcelona on Monday, AI/5G+6G innovations emerged as a dominant theme, with leading suppliers in the telecom industry showcasing their latest technologies.ZTE's A-share (000063 CH) and H-share (763 HK) prices surged by 10.0% and 10.6%, respectively, on Tuesday, buoyed by the company's direct involvement in 6G development.Maintain BUY on ZTE (000063 CH/763 HK) with unchanged TPs at RMB36.9 and HK$27.4, respectively. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZTE (763 HK) - MWC 2024: Industry Moves Towards Developing 6G

<ul><li>ZTE released its 3Q23 results. Quarterly revenue of RMB28.7bn (-12.4% YoY and -9.1% QoQ) was below market expectation, largely due to lower-thanexpected telecom revenue.</li><li>3Q net profit was RMB2.4bn, with 5.1% YoY and - 16.3% QoQ. GPM was resilient at 44.6% in 3Q23 (vs. 38.1%/42.0% in 3Q22/ 2Q23), showing Company’s competitiveness in the telecom market.</li><li>We revised down our EPS forecast for 2023-25E by 5%/7%/9%, reflecting a slowdown in growth in 3Q23.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZTE released its 3Q23 results. Quarterly revenue of RMB28.7bn (-12.4% YoY and -9.1% QoQ) was below market expectation, largely due to lower-thanexpected telecom revenue.3Q net profit was RMB2.4bn, with 5.1% YoY and - 16.3% QoQ. GPM was resilient at 44.6% in 3Q23 (vs. 38.1%/42.0% in 3Q22/ 2Q23), showing Company’s competitiveness in the telecom market.We revised down our EPS forecast for 2023-25E by 5%/7%/9%, reflecting a slowdown in growth in 3Q23.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>ZTE’s recent update on AI-related development: At a recent investor relations event, the Company shed light on its progress in AI development for the B2B sector.</li><li>The Company featured a foundational AI model, a R&amp;D model (AI-assisted programming), a telecom model (streamline telecom carriers’ operations), and an industry-specific model (focusing on urban governance) aimed to be rolled out between year-end and early 2024.</li><li>Capitalizing on the AI momentum spurred by ChatGPT in 1H23, the Company is set to debut new computational products and is on track to launch an AI server, specifically engineered for intensive model training. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZTE’s recent update on AI-related development: At a recent investor relations event, the Company shed light on its progress in AI development for the B2B sector.The Company featured a foundational AI model, a R&amp;D model (AI-assisted programming), a telecom model (streamline telecom carriers’ operations), and an industry-specific model (focusing on urban governance) aimed to be rolled out between year-end and early 2024.Capitalizing on the AI momentum spurred by ChatGPT in 1H23, the Company is set to debut new computational products and is on track to launch an AI server, specifically engineered for intensive model training. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZTE (000063 CH) – A Defensive Play with Long Runway for Growth

China

ZTE Corporation develops and markets switches, access servers, videoconferencing systems, mobile communication systems, data communication devices, and optical communication devices.  The Company also offers networking solutions for setup, refurbishment and optimization of networks.

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ZTE Corp H (763 HK)

ZTE (763 HK) - Mixed 1H24 Results

The stock is currently trading at 7x 2024E P/E, 1-SD below its 3-year historical avg. Maintain BUY rating with adjusted TP at HK$22.17.

CMB International

ZTE (000063 CH) - Improved Margins in 2023

ZTE released its FY23 results. Revenue grew by 1.1% YoY to RMB124bn, in line with consensus and 3% higher than our forecast.

CMB International

ZTE (763 HK) - MWC 2024: Industry Moves Towards Developing 6G

ZTE's A-share (000063 CH) and H-share (763 HK) prices surged by 10.0% and 10.6%, respectively, on Tuesday, buoyed by the company's direct...

CMB International

ZTE (000063 CH) – Mixed 3Q Results

ZTE released its 3Q23 results. Quarterly revenue of RMB28.7bn (-12.4% YoY and -9.1% QoQ) was below market expectation, largely due to lower...

CMB International

ZTE (000063 CH) – A Defensive Play with Long Runway for Growth

ZTE’s recent update on AI-related development: At a recent investor relations event, the Company shed light on its progress in AI development for...

CMB International

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