ZTE(000063) 国信证券·2024-08-19 02:03Investment Rating - The investment rating for the company is "Outperform the Market" [3][10]. Core Views - The company has shown steady growth in its operating performance for the first half of 2024, with revenue reaching 62.49 billion yuan, a year-on-year increase of 2.9%, and a net profit attributable to shareholders of 5.73 billion yuan, up 4.8% year-on-year [4][10]. - The company is focusing on expanding its capabilities in the enterprise and consumer sectors, as revenue from operator networks has faced pressure, decreasing by 8.6% year-on-year [6][10]. - The company continues to implement its "Connection + Computing Power" strategy, enhancing its research and development in computing power products and solutions [6][10]. Financial Performance Summary - For the first half of 2024, the company achieved operating revenue of 62.49 billion yuan, with a net profit of 5.73 billion yuan and a basic earnings per share of 1.20 yuan [4][10]. - In Q2 2024, the company reported operating revenue of 31.91 billion yuan, a 1.1% increase year-on-year, and a net profit of 2.99 billion yuan, up 5.7% year-on-year [5][10]. - The company’s gross margin for the first half of 2024 was 40.5%, a decrease of 2.75 percentage points year-on-year, attributed to changes in revenue structure [8][10]. Business Segment Performance - Revenue from operator networks was 37.3 billion yuan, down 8.6% year-on-year, while enterprise business revenue surged by 56.1% to 9.17 billion yuan, driven by growth in server and storage sales [6][10]. - Consumer business revenue reached 16.02 billion yuan, a 14.3% increase year-on-year, benefiting from growth in home terminals and mobile phone products [6][10]. - The domestic market generated 43.06 billion yuan in revenue, remaining stable year-on-year, while international market revenue increased by 10.4% to 19.43 billion yuan [6][10]. Future Outlook - The company is expected to accelerate its expansion into computing power, with revenue forecasts for 2024-2026 projected at 127.9 billion yuan, 131.5 billion yuan, and 135.7 billion yuan respectively [10][12]. - The net profit forecasts for the same period are 10.23 billion yuan, 11.05 billion yuan, and 11.52 billion yuan respectively, with corresponding price-to-earnings ratios for H shares at 7, 6, and 6 times, and for A shares at 12, 11, and 11 times [10][12].