GLONGHUI, June 3 | Citibank published a research report saying that ZTE (0763.HK)'s high-profit local telecom network will be hampered by future declines in China Telecom's capital expenditure, but this may be partially offset by overseas telecom companies and their business recovery. The bank still expects the Group to achieve continuous product structure optimization and seize the growth opportunities brought by the 4G upgrade and 5G launch of FTTR, AI, fiber and future overseas projects. Taking into account ZTE's lower revenue, the latest profit margin and foreign exchange forecasts, the bank lowered ZTE's profit forecast for FY2024 and FY25 by 1% and 3%, respectively, to maintain the buying rating. The target price was lowered from HK$20.3 to HK$19.8.