Tianfeng Securities gives ZTE a buy rating: revenue growth + scale effect reflects ICT/automotive electronics, etc. to open up more room for growth – yqqlm

　　Tianfeng SecuritiesPosted on March 9thResearch reportsay, giveZTE(000063.SZ, latest price: 24.82 yuan) Buy rating.The reasons for the rating mainly include: 1) double-digit year-on-year revenue growth, positive growth in all three business segments and domestic/international markets; 2) grossinterest rateYear-on-year recovery and improvement, some structural products are grossinterest rateThe overall gross profit margin is expected to continue to improve in the future; 3) The scale effect has begun to appear, and the short-term cost investment is still high, and it is expected that the scale effect will continue to be reflected in the future; 4) The operating profit has improved significantly, and the overall profitability has been continuously optimized; 5) It is planned to advancerepo6) Looking forward to the future, under the general trends of 5G new infrastructure, digitalization, and dual-carbon economy, the company 1) has outstanding market competitiveness of operators, and the global share of 5G is expected to increase steadily; 2) government and enterprise business will increase IT, The expansion of 5G industry applications, digital energy, automotive electronics, etc., creates a second growth curve, and there are many things to watch in the future; 3) The construction of consumer business brands, channels and products has achieved remarkable results. Under the absolute growth of revenue and gross profit, the company’s scale effect is expected to continue to appear.Expected to return to mother in 22-24 yearsnet profit9.0 billion, 11.0 billion, 12.8 billion yuan, corresponding to 13 times in 22 years and 11 times in 2023, and reiterated the “buy” rating.Risk warning: lower-than-expected capital expenditures by operators, more-than-expected impact of the epidemic, slower-than-expected progress in new businesses, risks due to international political factors, and repurchase issues still neededshareholderGeneral Assembly approval.

AI comments:ZTE5 copies in the past monthbrokerageThe research report paid attention to 4 companies and increased their holdings in 1 company. The average target price was 52.69 yuan, which was 27.87 yuan higher than the latest price of 24.82 yuan, and the average target price increased by 112.29%.

(Article source: Daily Economic News)

Article source: Daily Economic News

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Original title: Tianfeng Securities gives ZTE a buy rating: revenue growth + scale effect, ICT/automotive electronics, etc. open up more room for growth