Glonghui, April 28 | Citibank released a report stating that ZTE's first-quarter results were broadly in line with expectations, with revenue rising 5% year-on-year to 30.6 billion yuan, 4% higher than market expectations. It is in line with this forecast, and is equivalent to 23% of the bank and the market's forecast for the full year. China's telecom operators' capital expenditure declined, and domestic operators' network business was under pressure during the quarter. As for overseas operators' network business, government business, and consumer business revenue, it maintained a relatively rapid year-on-year increase. The bank believes that ZTE's gross margin for the first quarter fell 2.5 percentage points to 42% year-on-year, in line with market expectations. EBIT fell 5% year-on-year to $3 billion, 7% higher than market expectations. Overall, net profit for the first quarter increased 4% year-on-year to 2.7 billion yuan, 5% higher than market expectations, and equivalent to 27% of the bank's and market forecasts for the company for the whole year. The bank gave it a “buy” rating, with a target price of HK$20.3.