ZTE(000063) 国元证券·2024-03-10 16:00Investment Rating - The report maintains a "Buy" rating for ZTE Corporation (000063) [1] Core Views - ZTE Corporation's growth remains a priority, focusing on expanding from "connectivity" to "computing power" [4] - The company achieved a revenue of 124.25 billion yuan in 2023, a year-on-year increase of 1.05%, with a net profit of 9.33 billion yuan, up 15.41% [2][10] - The report highlights strong profitability across all business segments, with a notable increase in gross margins [3][13] Summary by Sections Financial Performance - In 2023, ZTE's revenue was 124.25 billion yuan, with a net profit of 9.33 billion yuan, and a non-recurring net profit of 7.40 billion yuan, reflecting year-on-year growth of 15.41% and 19.99% respectively [2][10] - The fourth quarter saw a revenue of 34.86 billion yuan, marking a 14.68% increase year-on-year [2] Business Segments - The revenue from the carrier network business reached 82.76 billion yuan, up 3.40% year-on-year, driven by growth in wireless and wired products [3][10] - The enterprise business generated 13.58 billion yuan, down 7.14%, primarily due to declines in domestic integration projects and international markets [3][10] - Consumer business revenue was 27.91 billion yuan, a decrease of 1.33%, attributed to lower sales in international home terminals and mobile products [3][10] Profitability - ZTE's gross margin improved across all segments, with the carrier network business gross margin increasing by 2.89 percentage points to 49.11% [13] - The overall gross margin for 2023 reached 41.53%, an increase of 4.34% year-on-year [14] Future Outlook - The report forecasts ZTE's revenue for 2024-2026 to be 134.45 billion, 145.53 billion, and 153.63 billion yuan respectively, with net profits projected at 10.67 billion, 12.31 billion, and 13.45 billion yuan [5] - The company is expected to benefit from its ongoing investment in R&D and optimization of product structure [5][4]