J.P. Morgan Chase released a report stating that ZTE's performance in the first quarter was mixed, and revenue growth was stable. Although the network business of Chinese operators was weak, the steady performance of the government, enterprise, and consumer business made up for related losses. Gross margin declined, and net profit growth slowed sharply. The bank believes that despite the weak financial trend of ZTE, revenue and profit for the first quarter were 4% and 5% higher than expected, and it is estimated that there will be a positive reaction to the stock price. However, unless ZTE's business growth accelerates significantly in the next few quarters, I don't think ZTE will continue to receive critical reviews. Furthermore, the bank's revenue and profit forecast for ZTE this year will increase by 5% and 10% year-on-year to 130.7 billion and 103 billion yuan. The bank rated it “overvalued”, and the target price was HK$13.