ZTE Corporation Class H (HK:0763)
:0763
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ZTE
(0763)
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Rating:55Neutral
Price Target:
HK$30.00
▲(28.76% Upside)
Action:Reiterated
Date:05/29/26
The score is primarily constrained by weaker fundamental quality—margin compression and a sharp deterioration in cash flow, including negative TTM free cash flow—despite improved revenue momentum and a somewhat healthier leverage profile. Technicals are moderately supportive in the near term, but valuation is stretched with a high P/E and only a modest dividend yield.
Positive Factors
Strong top-line momentum
A sharp acceleration in revenue (TTM ~128%) indicates successful order wins or recovery in core markets, supporting durable sales momentum across project and commercial channels. Sustained top-line growth provides capacity to rebuild margins and invest in R&D or network deployments over coming quarters.
Negative Factors
Sharp cash generation deterioration
Material decline in operating cash flow and negative free cash flow erode the company’s ability to self-fund capex, R&D and dividends. Weak cash conversion increases reliance on external funding and raises execution risk on large network projects that require milestone liquidity.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong top-line momentum
A sharp acceleration in revenue (TTM ~128%) indicates successful order wins or recovery in core markets, supporting durable sales momentum across project and commercial channels. Sustained top-line growth provides capacity to rebuild margins and invest in R&D or network deployments over coming quarters.
Read all positive factors
ZTE (0763) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$191.94B
Dividend Yield2.43%
Average Volume (3M)35.55M
Price to Earnings (P/E)39.3
Beta (1Y)1.40
Revenue Growth11.91%
EPS Growth-44.16%
CountryHK
Employees68,375
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.93
Shares Outstanding755,502,560
10 Day Avg. Volume14,904,030
30 Day Avg. Volume35,546,862
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)1.55
Price to Sales (P/S)0.90
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$29.40Price Target Upside26.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)1.36
Revenue Forecast (FY)HK$147.31B
ZTE Business Overview & Revenue Model
Company Description
ZTE Corporation operates internationally, delivering end-to-end communication and information technology services to clients throughout the People's Republic of China, the wider Asian region, Africa, Europe, the United States, and Oceania. The com...
How the Company Makes Money
ZTE primarily makes money by selling ICT products and solutions through a mix of large project-based deployments and ongoing commercial supply arrangements. Key revenue streams typically include: (1) Carrier/telecom operator network equipment sale...
ZTE Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 135.10B | 129.96B | 121.30B | 124.25B | 122.95B | 114.52B |
| Gross Profit | 38.07B | 35.77B | 45.99B | 50.80B | 45.73B | 40.36B |
| EBITDA | 6.97B | 7.66B | 17.65B | 18.27B | 15.08B | 14.57B |
| Net Income | 4.46B | 5.47B | 8.42B | 9.33B | 8.08B | 6.81B |
Balance Sheet | ||||||
| Total Assets | 224.97B | 218.20B | 207.32B | 200.96B | 180.95B | 168.76B |
| Cash, Cash Equivalents and Short-Term Investments | 48.74B | 51.68B | 57.65B | 78.70B | 56.86B | 52.07B |
| Total Debt | 87.37B | 80.62B | 53.06B | 56.11B | 46.54B | 40.36B |
| Total Liabilities | 148.19B | 142.53B | 134.21B | 132.63B | 121.41B | 115.48B |
| Stockholders Equity | 76.56B | 75.46B | 72.81B | 68.01B | 58.64B | 51.48B |
Cash Flow | ||||||
| Free Cash Flow | -2.00B | 1.97B | 7.47B | 13.40B | 2.63B | 10.04B |
| Operating Cash Flow | 1.84B | 5.76B | 11.48B | 17.41B | 7.58B | 15.72B |
| Investing Cash Flow | -12.95B | -8.64B | -28.67B | -20.90B | -1.29B | -10.59B |
| Financing Cash Flow | -1.63B | 516.33M | -5.82B | 7.37B | 1.45B | 2.78B |
ZTE Technical Analysis
Positive
23.30
Price Trends
24.91
Positive
26.08
Positive
29.48
Positive
Market Momentum
0.79
Negative
65.42
Neutral
73.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0763, the sentiment is Positive. The current price of 23.3 is below the 20-day moving average (MA) of 26.25, below the 50-day MA of 24.91, and below the 200-day MA of 29.48, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 65.42 is Neutral, neither overbought nor oversold. The STOCH value of 73.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$52.72B | 21.67 | 8.70% | 0.63% | 16.62% | 42.86% | |
72 Outperform | HK$304.91B | 313.99 | 9.01% | 0.54% | 20.63% | 48.18% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | HK$18.80B | 48.44 | 3.51% | ― | 16.73% | ― | |
55 Neutral | HK$191.94B | 39.35 | 5.92% | 2.43% | 11.91% | -44.16% | |
54 Neutral | HK$3.62B | 103.16 | -11.77% | 0.24% | 0.94% | ― | |
53 Neutral | HK$645.54M | -49.80 | -0.25% | ― | -7.14% | 85.97% |
* Technology Sector Average
HK:0763
ZTE
27.54
3.54
14.75%
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ZTE Corporate Events
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...
ZTE Revenue Grows as First-Quarter Profit and Cash Flow Weaken
Apr 24, 2026
ZTE Corporation reported unaudited first-quarter 2026 results showing modest top-line growth but a sharp drop in profitability. Operating revenue rose 6.1% year on year to RMB 34.99 billion, while total assets and equity attributable to shareholde...
ZTE Schedules Board Meeting to Approve First-Quarter 2026 Results
Apr 14, 2026
ZTE Corporation has convened a meeting of its board of directors for 24 April 2026 in Shenzhen to review and approve the group’s first-quarter results for the period ended 31 March 2026. The session will also authorize the publication of the...
ZTE to Host Online 2025 Annual Results Presentation and Investor Q&A
Mar 26, 2026
ZTE Corporation has scheduled its 2025 annual results presentation for 30 March 2026, which will be held as a live online webcast for investors. Senior management, including the president, chief financial officer, chief operating officer and board...
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.