ZTE (0763) AI Stock Analysis

• Market Cap: HK$163.33B
• Dividend Yield: 2.43%
• Average Volume (3M): 35.55M
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.35
• 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: 14,904,030
• 30 Day Avg. Volume: 35,546,862
• PEG Ratio: -0.60
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 59.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$27.90
• Price Target Upside: 26.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.52
• Revenue Forecast (FY): HK$149.15B

• Rating: 47 Neutral
• Price Target: HK$21.50 ▼(-2.54% Downside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is held down primarily by weakening cash flow and margin/return compression alongside higher leverage. Technicals also indicate a sustained downtrend with weak momentum. A very high P/E further weighs on the profile, despite a moderate dividend yield.

Positive Factors

Robust revenue growth

TTM revenue growth of ~+124% signals durable demand expansion and likely larger contract wins across segments. Strong top-line momentum provides scale to fund R&D and deployments, improving the company's ability to rebuild margins and leverage long-term operator relationships over months.

Negative Factors

Margin compression

Sharp decline in gross and net margins suggests pricing pressure, adverse product mix, or rising input costs. Persistently lower margins reduce internal reinvestment capacity and compress ROE, requiring structural cost reductions or higher-margin sales to restore profitability over coming quarters.

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 Corpora...

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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 Corpora...

How the Company Makes Money

ZTE primarily makes money by selling telecommunications network equipment and related solutions to mobile and fixed-line operators and other network customers. A major revenue stream comes from providing end-to-end network infrastructure (e.g., ra...

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ZTE primarily makes money by selling telecommunications network equipment and related solutions to mobile and fixed-line operators and other network customers. A major revenue stream comes from providing end-to-end network infrastructure (e.g., ra...

ZTE Financial Statement Overview

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	129.96B	121.30B	124.25B	122.95B	114.52B
Gross Profit	35.77B	45.99B	50.80B	45.73B	40.36B
EBITDA	7.66B	17.65B	18.27B	15.08B	14.57B
Net Income	5.47B	8.42B	9.33B	8.08B	6.81B
Balance Sheet
Total Assets	218.20B	207.32B	200.96B	180.95B	168.76B
Cash, Cash Equivalents and Short-Term Investments	51.68B	57.65B	78.70B	56.86B	52.07B
Total Debt	80.62B	53.06B	56.11B	46.54B	40.36B
Total Liabilities	142.53B	134.21B	132.63B	121.41B	115.48B
Stockholders Equity	75.46B	72.81B	68.01B	58.64B	51.48B
Cash Flow
Free Cash Flow	1.97B	7.47B	13.40B	2.63B	10.04B
Operating Cash Flow	5.76B	11.48B	17.41B	7.58B	15.72B
Investing Cash Flow	-8.64B	-28.67B	-20.90B	-1.29B	-10.59B
Financing Cash Flow	516.33M	-5.82B	7.37B	1.45B	2.78B

ZTE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 22.06 is below the 20-day moving average (MA) of 23.70, below the 50-day MA of 26.03, and below the 200-day MA of 29.30, indicating a bearish trend. The MACD of -1.20 indicates Positive momentum. The RSI at 32.19 is Neutral, neither overbought nor oversold. The STOCH value of 23.55 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6869	69 Neutral	HK$232.90B	44.55	4.90%	0.54%	14.38%	-41.96%
1473	68 Neutral	HK$533.26M	7.47	12.27%	2.53%	19.80%	―
1617	65 Neutral	HK$756.20M	1.60	7.29%	―	-9.34%	605.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2342	54 Neutral	HK$4.68B	-70.76	-11.77%	0.24%	-13.99%	-32.74%
0763	47 Neutral	HK$163.33B	21.31	7.55%	2.43%	5.14%	-38.37%
1613	46 Neutral	HK$86.81M	-1.99	-30.01%	―	-58.81%	-10.51%

ZTE Corporate Events