tiprankstipranks
Trending News
More News >
ZTE Corporation Class H (HK:0763)
:0763
Advertisement

ZTE (0763) AI Stock Analysis

Compare
13 Followers

Top Page

HK:0763

ZTE

(OTC:0763)

Select Model
Select Model
Select Model
Outperform 79 (OpenAI - 4o)
Rating:79Outperform
Price Target:
HK$38.00
▲(8.63% Upside)
ZTE's strong financial performance and positive technical indicators are the primary drivers of its high score. The company's robust profitability and stable financial structure are complemented by bullish market momentum. However, moderate concerns in cash flow management and a fair valuation slightly temper the overall score.
Positive Factors
Negative Factors

ZTE (0763) vs. iShares MSCI Hong Kong ETF (EWH)

ZTE Business Overview & Revenue Model

Company DescriptionZTE Corporation (0763) is a leading global provider of telecommunications equipment and network solutions. The company operates primarily in the sectors of telecommunications, enterprise, and consumer technology. ZTE's core products and services include wireless networks, wired networks, cloud computing solutions, and mobile devices. The company is known for its innovations in 5G technology and has a presence in over 160 countries, catering to telecommunications operators, enterprises, and consumers.
How the Company Makes MoneyZTE makes money through the sale of telecommunications equipment and solutions to network operators, enterprises, and consumers. Its revenue streams are primarily derived from three segments: Carrier Networks, Government and Corporate Business, and Consumer Business. Carrier Networks, which includes wireless and wired network solutions, is the largest contributor to ZTE's revenue. The company also earns from its Government and Corporate Business segment by providing ICT solutions, including cloud computing and data center services. Additionally, ZTE generates revenue from its Consumer Business through the sale of smartphones and other mobile devices. Strategic partnerships with telecommunications operators and enterprises globally also play a significant role in enhancing ZTE's market presence and revenue.

ZTE Financial Statement Overview

Summary
ZTE demonstrates strong profitability with a Gross Profit Margin of 35.9% and a Net Profit Margin of 6.6% for TTM. The balance sheet reflects a stable financial structure with a manageable Debt-to-Equity Ratio of 0.75. However, cash flow management presents a moderate concern, with declining free cash flow impacting liquidity.
Income Statement
84
Very Positive
ZTE demonstrates strong profitability with a Gross Profit Margin of 35.9% and a Net Profit Margin of 6.6% for TTM (Trailing-Twelve-Months). The EBIT Margin stands at 7.3%, while EBITDA Margin is at 10.0% indicating efficient operations. Revenue growth is modest, with a slight increase from 2024 to TTM. The company maintains stable profitability, although there was a slight decline in gross profit margin from 2023 to TTM.
Balance Sheet
78
Positive
The balance sheet reflects a stable financial structure with an Equity Ratio of 33.2% and a manageable Debt-to-Equity Ratio of 0.75 in TTM. ROE is strong at 11.3%, showcasing efficient use of equity to generate profits. The company maintains a healthy balance between debt and equity, though total debt has increased over the years, which could impact future leverage.
Cash Flow
72
Positive
Operating Cash Flow to Net Income Ratio is 0.49 in TTM, indicating room for improvement in cash generation efficiency. The Free Cash Flow to Net Income Ratio stands at 0.63, showing positive but moderate cash flow health. Free Cash Flow decreased from the previous year, indicating potential cash flow management challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue130.36B121.30B124.25B122.95B114.52B101.45B
Gross Profit43.92B45.99B50.80B45.73B40.36B32.07B
EBITDA11.70B17.65B18.27B15.08B14.57B10.53B
Net Income7.75B8.42B9.33B8.08B6.81B4.28B
Balance Sheet
Total Assets216.31B207.32B200.96B180.95B168.76B150.63B
Cash, Cash Equivalents and Short-Term Investments53.93B57.65B78.70B56.86B52.07B36.70B
Total Debt60.26B53.06B56.11B46.54B40.36B36.00B
Total Liabilities141.20B134.21B132.63B121.41B115.48B104.51B
Stockholders Equity74.84B72.81B68.01B58.64B51.48B43.30B
Cash Flow
Free Cash Flow495.00M7.47B13.40B2.63B10.04B3.76B
Operating Cash Flow1.30B11.48B17.41B7.58B15.72B10.23B
Investing Cash Flow-24.96B-28.67B-20.90B-1.29B-10.59B-7.08B
Financing Cash Flow-2.77B-5.82B7.37B1.45B2.78B-289.90M

ZTE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price34.98
Price Trends
50DMA
29.67
Positive
100DMA
26.44
Positive
200DMA
25.28
Positive
Market Momentum
MACD
1.43
Positive
RSI
59.95
Neutral
STOCH
68.55
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 34.98 is above the 20-day moving average (MA) of 34.43, above the 50-day MA of 29.67, and above the 200-day MA of 25.28, indicating a bullish trend. The MACD of 1.43 indicates Positive momentum. The RSI at 59.95 is Neutral, neither overbought nor oversold. The STOCH value of 68.55 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$219.06B20.0210.66%1.91%3.16%-19.51%
70
Outperform
586.00M16.1812.51%2.00%53.77%0.00%
70
Outperform
75.11B72.665.81%0.48%12.11%-44.33%
59
Neutral
224.42M3.430.00%-9.34%605.26%
54
Neutral
10.03B-25.45-21.27%0.19%-13.99%-32.74%
42
Neutral
112.19M-3.03-30.08%86.85%-36.65%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0763
ZTE
34.98
19.13
120.68%
COBJF
Comba Telecom Systems Holdings
0.21
0.09
75.00%
YZOFF
Yangtze Optical Fibre and Cable Joint Stock Co
1.64
0.62
60.78%
HK:1473
Pangaea Connectivity Technology Limited
0.50
0.28
127.27%
HK:1613
Synertone Communication Corporation
0.25
-0.11
-30.56%
HK:1617
Nanfang Communication Holdings Ltd.
0.15
0.08
114.29%

ZTE Corporate Events

ZTE Completes Issuance of Convertible Bonds to Boost R&D
Aug 5, 2025

ZTE Corporation has successfully completed the issuance of RMB3,584 million zero-coupon USD-settled convertible bonds due 2030, with net proceeds amounting to approximately US$494.30 million. The funds raised will be directed towards research and development investments in computility products, potentially strengthening ZTE’s technological capabilities and market competitiveness. The bonds are expected to be listed on the Hong Kong Stock Exchange, reflecting ZTE’s strategic financial management and commitment to innovation.

The most recent analyst rating on (HK:0763) stock is a Hold with a HK$25.00 price target. To see the full list of analyst forecasts on ZTE stock, see the HK:0763 Stock Forecast page.

ZTE Announces RMB3.584 Billion Convertible Bond Issuance to Boost R&D
Jul 28, 2025

ZTE Corporation has announced the proposed issuance of RMB3,584 million USD settled zero coupon convertible bonds due 2030 under a general mandate. The bonds are convertible into H Shares at an initial conversion price of HK$30.25 per H Share, potentially increasing the company’s H share capital by approximately 17.17%. The proceeds from this issuance are intended to enhance ZTE’s R&D investments in computility products, potentially strengthening its market position and innovation capabilities.

The most recent analyst rating on (HK:0763) stock is a Hold with a HK$25.00 price target. To see the full list of analyst forecasts on ZTE stock, see the HK:0763 Stock Forecast page.

ZTE Appoints Ms. Li Miaona as Employee Director for Tenth Board Session
May 23, 2025

ZTE Corporation announced the election of Ms. Li Miaona as the employee director for the Tenth Session of its Board of Directors. Her term will begin on May 23, 2025, and end on March 27, 2028. Ms. Li has been with ZTE since 2000 and has held various management roles, bringing extensive experience to her new position. This appointment is part of ZTE’s ongoing efforts to involve employees in its governance structure, potentially enhancing its operational effectiveness and stakeholder engagement.

The most recent analyst rating on (HK:0763) stock is a Sell with a HK$19.47 price target. To see the full list of analyst forecasts on ZTE stock, see the HK:0763 Stock Forecast page.

ZTE Corporation Announces Board of Directors and Committee Roles
May 23, 2025

ZTE Corporation has announced the composition of its Board of Directors and the roles each member will play in various committees. This announcement is crucial as it outlines the leadership structure and governance framework that will guide the company’s strategic decisions and compliance efforts, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (HK:0763) stock is a Sell with a HK$19.47 price target. To see the full list of analyst forecasts on ZTE stock, see the HK:0763 Stock Forecast page.

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.Date of analysis: Sep 03, 2025