ZTE Corporation Class H (HK:0763)
:0763
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ZTE
(0763)
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Rating:50Neutral
Price Target:
HK$27.00
▲(15.88% Upside)
Action:Reiterated
Date:04/26/26
The score is mainly held back by weakened fundamentals: significant margin compression and a pronounced downturn in operating cash flow with negative TTM free cash flow. Technicals add modest pressure due to trading below key longer-term moving averages. Valuation is relatively neutral with some support from the dividend yield, but not enough to outweigh cash-flow risk.
Positive Factors
Revenue Momentum
A pronounced rebound in top-line (7.1% annual and ~128% TTM acceleration) indicates stronger demand and larger deployment activity. Sustained revenue momentum supports scale economics, expands addressable contracts, and provides a sturdier base for multi‑year service and maintenance revenue streams.
Negative Factors
Margin Compression
Sharp decline in gross and operating margins signals durable profitability pressure from pricing, cost inflation, or adverse product mix. Lower margins reduce retained earnings and limit reinvestment capacity, making it harder to fund R&D, absorb competitive pricing, or sustain shareholder distributions long term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Momentum
A pronounced rebound in top-line (7.1% annual and ~128% TTM acceleration) indicates stronger demand and larger deployment activity. Sustained revenue momentum supports scale economics, expands addressable contracts, and provides a sturdier base for multi‑year service and maintenance revenue streams.
Read all positive factors
ZTE (0763) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$189.07B
Dividend Yield2.43%
Average Volume (3M)35.55M
Price to Earnings (P/E)17.7
Beta (1Y)1.45
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$28.03Price Target Upside20.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.4
Revenue Forecast (FY)HK$147.66B
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...
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
Negative
23.30
Price Trends
25.20
Negative
27.27
Negative
29.33
Negative
Market Momentum
-0.42
Negative
43.99
Neutral
64.91
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 23.3 is above the 20-day moving average (MA) of 23.20, below the 50-day MA of 25.20, and below the 200-day MA of 29.33, indicating a neutral trend. The MACD of -0.42 indicates Negative momentum. The RSI at 43.99 is Neutral, neither overbought nor oversold. The STOCH value of 64.91 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$50.09B | 6.27 | 8.59% | 0.63% | 16.62% | 42.86% | |
72 Outperform | HK$268.64B | 67.67 | 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$22.28B | 10.58 | 3.51% | ― | 16.73% | ― | |
54 Neutral | HK$4.46B | -70.76 | -11.77% | 0.24% | 0.94% | ― | |
54 Neutral | HK$562.24M | -8.74 | -0.25% | ― | -7.14% | 85.97% | |
50 Neutral | HK$189.07B | 17.66 | 5.92% | 2.43% | 11.91% | -44.16% |
* Technology Sector Average
HK:0763
ZTE
25.22
2.67
11.84%
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ZTE Corporate Events
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...
ZTE Posts Audited 2025 Results and Proposes Cash Dividend
Mar 6, 2026
ZTE Corporation has released its audited annual results for the year ended 31 December 2025, confirming that its 2025 financial statements have received an unqualified audit opinion from Ernst Young Hua Ming LLP and that the full annual report wi...
ZTE Proposes Final 2025 Cash Dividend, Key Details Pending
Mar 6, 2026
ZTE Corporation has announced a proposed final ordinary cash dividend of RMB 4.11 per 10 shares for the financial year ended 31 December 2025. Key implementation details, including the Hong Kong payment currency, exchange rate, ex-dividend and rec...
ZTE Board Clears 2025 Reports and Seeks Mandate for RMB8 Billion Bond Issue
Mar 6, 2026
ZTE Corporation’s board has approved its 2025 working report, annual report, and final financial accounts, clearing the way for these documents to be submitted to shareholders at the upcoming general meeting. The board also endorsed the pres...
ZTE Sets March Board Meeting to Approve 2025 Annual Results and Profit Plan
Feb 24, 2026
ZTE Corporation has announced that its board of directors will convene a meeting on 6 March 2026 in Shenzhen, China, to review and approve the group’s audited annual results for the financial year ended 31 December 2025. The board will also ...
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.