CICC International: Lowers target price of ZTE Corporation (00763.HK) to 38 Hong Kong dollars, expects transformation to yield results next year.

According to the Zhixun Finance and Economics APP, Industrial Bank International released a research report stating that due to the more conservative sales of ZTE Corporation's (00763.HK) carrier business and the profit pressure brought by changes in product structure, the group's profit forecasts for 2025-2027 have been lowered by 23%/7%/7% respectively. The valuation benchmark has been updated to 2026, with the H share target price lowered by 5% from 40 Hong Kong dollars to 38 Hong Kong dollars, maintaining an "outperform" rating. The bank believes that ZTE Corporation is currently at a key stage of transitioning to a provider of network, cloud and computing infrastructure, and expects gradual effectiveness to be shown from 2026 onwards.