JPMorgan Chase issued a report pointing out that ZTE's first-quarter results were mixed and revenue growth was stable. Although the network business of Chinese operators was weak, the steady performance of the government and corporate and consumer businesses made up for the related losses. Gross profit margins fell, and net profit growth slowed significantly.
The bank believes that despite ZTE's weak financial trend, revenue and earnings in the first quarter were 4% and 5% higher than expectations, and it is expected to have a positive reaction to the stock price. However, unless ZTEasteroidsgamefreeOur business growth accelerated significantly in the next few quarters, otherwise ZTE would not be expected to receive continuous re-evaluation.
In addition, the bank's forecast for ZTE's revenue and earnings this year will increase by 5% and 10% year-on-year to 130.7 billion yuan and 103 billion yuan. The bank rated it "overweight" with a target price of HK$13.
