ZTE(00763.HK):1QFY2024 RESULTS WERE IN LINE WITH EXPECTATIONS SERVER AND STORAGE BUSINESS MAY EXCEED EXPECTATIONS
ZTE(00763.HK):1QFY2024 RESULTS WERE IN LINE WITH EXPECTATIONS SERVER AND STORAGE BUSINESS MAY EXCEED EXPECTATIONS
We maintain the TP at HK$23.80 and the investment rating as "Buy". Considering strong demand in the server and storage market brought about by strong demand for computing power of artificial intelligence (AI), as well as ZTE's (the "Company") in-depth expansion in various fields of the second curve business, we maintain the TP at HK$23.80 and the investment rating as "Buy". The TP represents 10.5x/ 9.5x/ 8.2x 2024-2026 PER.
我們將目標價維持在23.80港元，投資評級爲 “買入”。考慮到對人工智能（AI）計算能力的強勁需求帶來的服務器和存儲市場的強勁需求，以及中興通訊（“公司”）在第二曲線業務各個領域的深入擴張，我們將目標價維持在23.80港元，投資評級爲 “買入”。目標股指的是10.5x/ 9.5x/ 8.2x 2024-2026年的市盈率。
ZTE's 1QFY2024 results were in line with our expectations. According to PRC Accounting Standards for Business Enterprises (ASBEs), operating revenue in 1QFY2024 increased by 4.9% yoy to RMB30,578 million. Gross profit margin of the Company decreased by 2.5 ppts yoy to 42.0%. Shareholders' net profit increased by 3.7% yoy to RMB2,741 million, while shareholders' net profit after extraordinary items increased by 7.9% yoy. R&D expenses to total revenue increased by 0.5 ppt yoy to 20.9%. We believe that strong R&D investment may ensure the Company's leading-edge advantage in the ICT technology and equipment market.
中興通訊的 1QFY2024 業績符合我們的預期。根據中國商業企業會計準則（ASBE），1QFY2024 的營業收入同比增長4.9％，達到人民幣305.78億元。該公司的毛利率同比下降2.5個百分點至42.0％。股東淨利潤同比增長3.7％至人民幣27.41億元，而股東扣除特殊項目的淨利潤同比增長7.9％。研發費用佔總收入的比例同比增長0.5個百分點至20.9％。我們認爲，強勁的研發投資可以確保公司在ICT技術和設備市場的領先優勢。
Taking connectivity as the foundation, the Company continues to innovate and expand. Relying on its strong underlying capabilities with chips, algorithms, and architecture, the Company is in a leading position in both wireless and fixed networks, and is expected to maintain a leading position in next generation ICT technologies such as 5G-A, all-optical networks, and 6G.
公司以連接爲基礎，繼續創新和擴張。憑藉其強大的芯片、算法和架構基礎能力，該公司在無線和固定網絡中均處於領先地位，並有望在5G-A、全光網絡和6G等下一代ICT技術中保持領先地位。
? The Company is expected to expand the field of intelligent computing continuously. ZTE expands the market in second curve fields such as general computing, intelligent computing, and large models. The Company has launched general computing and intelligent computing servers, high-performance storage, AiCube training and inference integrated cabinet, 400G/ 800G high-performance data center switches, Nebulas large models, etc. The Company's continuous R&D investment and integration of AI with its product ecosystem are expected to promote the development of its computing power business.
？預計該公司將持續擴大智能計算領域。中興通訊擴大了第二曲線領域的市場，例如通用計算、智能計算和大型模型。該公司已推出通用計算和智能計算服務器、高性能存儲、AiCube訓練和推理集成櫃、400G/800G高性能數據中心交換機、星雲大型模型等，公司持續的研發投入以及對人工智能與其產品生態系統的整合，有望促進其計算能力業務的發展。
? Catalysts: Quicker-than-expected growth within different business areas in the second curve; the explosion of AI demand on the mobile user side.
？催化劑：第二條曲線中不同業務領域的增長快於預期；移動用戶端的人工智能需求激增。
? Risks: Risk of Sino-US trade friction; weaker-than-expected demand from government and corporate customers.
？風險：中美貿易摩擦風險；政府和企業客戶的需求低於預期。
譯文內容由第三人軟體翻譯。