ZTE Corp.

  • Ticker000063
  • ISINCNE000000TK5
  • ExchangeShenzhen Stock Exchange
  • SectorTechnology Hardware & Equipment
  • CountryChina
UOB
Greater China Research Team

Strategy - Alpha Picks: Greater China May Conviction Calls

The Chinese equity markets in Apr 20 saw the strongest monthly rebound since the beginning of 2020, but the uncertainties of the COVID-19 pandemic are still deterring the markets from a full recovery. We remain positive on the beneficiaries of policy support and durable themes, and focus on names with strong balance sheets and low dependence on global supply chains. Our key picks are Ausnutria Dairy, CEG, CIFI, JD.com and ZTE.

An unfavourable environment weighs on ZTE CORP., which sees a downgrade to Slightly Negative

The independent financial analyst theScreener just requalified the general evaluation of ZTE CORP. (CN), active in the Telecommunications Equipment industry. As regards its fundamental valuation, the title still shows 1 out of 4 stars and its market behaviour is seen as moderately risky. theScreener believes that the unfavourable environment weighs on the sector and penalises the company, which sees a downgrade to its general evaluation to Slightly Negative. As of the analysis date April 10, 2020, the closing price was CNY 39.29 and its target price was estimated at CNY 32.12.

UOB
Adrian Loh Tzum Yung ...
  • Arandi Ariantara
  • Carol Dou Xiao Qin
  • Chaiwat Arsirawichai
  • Chong Lee Len
  • Eric Wang Zhen
  • Greater China Research Team
  • Jacquelyn Yow Hui Li
  • Jayson Kong
  • Jie Ying Chloe Tan
  • Lee Yuk Kei
  • Leow Huey Chuen
  • Michael Cheung Ho Bun
  • Peerawat Dentananan
  • Philip Wong
  • Singapore Research Team
  • Tanadech Rungsrithananon
  • Thailand Research Team
  • Vanness Wong Wan
  • Zhifeng Shen

Regional Morning Notes - Tuesday, March 31, 2020

GREATER CHINA Strategy Z-Score Assessment: With rising risk of a global recession, we identify the weakest link within our coverage. Results China Construction Bank (939 HK/HOLD/HK$6.24/Target: HK$6.89): 2019: Results in line; NIM squeezed as expected but asset quality improved. China Longyuan Power (916 HK/BUY/HK$4.07/Target: HK$5.70): 2019: Good cost control to drive earnings; COVID-19 pandemic to have limited impact. CSPC Pharmaceutical Group (1093 HK/BUY/HK$16.22Target: HK$20.90): 2019: Net earnings grew 20.6% yoy. Outlook remains bright. PICC Property and Casualty (2328 HK/BUY/HK$7.26/Tar...

UOB
Carol Dou Xiao Qin ...
  • Eric Wang Zhen
  • Greater China Research Team
  • Jayson Kong
  • Ken Lee
  • Lee Yuk Kei
  • Michael Cheung Ho Bun
  • Vanness Wong Wan
  • Zhifeng Shen

Greater China Daily: Tuesday, March 31, 2020

KEY HIGHLIGHTS Strategy Z-Score Assessment With rising risk of a global recession, we identify the weakest link within our coverage. Results China Construction Bank (939 HK/HOLD/HK$6.24/Target: HK$6.89) 2019: Results in line; NIM squeezed as expected but asset quality improved. China Longyuan Power (916 HK/BUY/HK$4.07/Target: HK$5.70) 2019: Good cost control to drive earnings; COVID-19 pandemic to have limited impact. China Meidong Auto Holdings (1268 HK/HOLD/HK$11.50/Target: HK$10.80) 2019: Net profit surged 52% yoy, beating estimates. Raise target price to HK$10.80. Entry price: HK$9...

UOB
Lee Yuk Kei ...
  • Vanness Wong Wan

ZTE Corporation - Bracing for 5G investment boom. Upgrade to BUY.

ZTE Corp recorded a net profit of Rmb5.1b for 2019 vs a net loss a year ago, reflecting business normalisation following the exceptional US$1b fine issued by the US government. Looking ahead, as the world’s fourth largest telecom equipment vendor, we believe ZTE is well positioned to capture the 5G investment boom globally, particularly in the Chinese market. Thus, we upgrade the counter to BUY after the recent share price correction, with a target price of HK$29.00.

1 director sold

A director at Zte Corp sold 69,300 shares at 28.780CNY and the significance rating of the trade was 70/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board membe...

UOB
Greater China Research Team

Strategy - Alpha Picks: Greater China May Conviction Calls

The Chinese equity markets in Apr 20 saw the strongest monthly rebound since the beginning of 2020, but the uncertainties of the COVID-19 pandemic are still deterring the markets from a full recovery. We remain positive on the beneficiaries of policy support and durable themes, and focus on names with strong balance sheets and low dependence on global supply chains. Our key picks are Ausnutria Dairy, CEG, CIFI, JD.com and ZTE.

UOB
Adrian Loh Tzum Yung ...
  • Arandi Ariantara
  • Carol Dou Xiao Qin
  • Chaiwat Arsirawichai
  • Chong Lee Len
  • Eric Wang Zhen
  • Greater China Research Team
  • Jacquelyn Yow Hui Li
  • Jayson Kong
  • Jie Ying Chloe Tan
  • Lee Yuk Kei
  • Leow Huey Chuen
  • Michael Cheung Ho Bun
  • Peerawat Dentananan
  • Philip Wong
  • Singapore Research Team
  • Tanadech Rungsrithananon
  • Thailand Research Team
  • Vanness Wong Wan
  • Zhifeng Shen

Regional Morning Notes - Tuesday, March 31, 2020

GREATER CHINA Strategy Z-Score Assessment: With rising risk of a global recession, we identify the weakest link within our coverage. Results China Construction Bank (939 HK/HOLD/HK$6.24/Target: HK$6.89): 2019: Results in line; NIM squeezed as expected but asset quality improved. China Longyuan Power (916 HK/BUY/HK$4.07/Target: HK$5.70): 2019: Good cost control to drive earnings; COVID-19 pandemic to have limited impact. CSPC Pharmaceutical Group (1093 HK/BUY/HK$16.22Target: HK$20.90): 2019: Net earnings grew 20.6% yoy. Outlook remains bright. PICC Property and Casualty (2328 HK/BUY/HK$7.26/Tar...

UOB
Carol Dou Xiao Qin ...
  • Eric Wang Zhen
  • Greater China Research Team
  • Jayson Kong
  • Ken Lee
  • Lee Yuk Kei
  • Michael Cheung Ho Bun
  • Vanness Wong Wan
  • Zhifeng Shen

Greater China Daily: Tuesday, March 31, 2020

KEY HIGHLIGHTS Strategy Z-Score Assessment With rising risk of a global recession, we identify the weakest link within our coverage. Results China Construction Bank (939 HK/HOLD/HK$6.24/Target: HK$6.89) 2019: Results in line; NIM squeezed as expected but asset quality improved. China Longyuan Power (916 HK/BUY/HK$4.07/Target: HK$5.70) 2019: Good cost control to drive earnings; COVID-19 pandemic to have limited impact. China Meidong Auto Holdings (1268 HK/HOLD/HK$11.50/Target: HK$10.80) 2019: Net profit surged 52% yoy, beating estimates. Raise target price to HK$10.80. Entry price: HK$9...

UOB
Lee Yuk Kei ...
  • Vanness Wong Wan

ZTE Corporation - Bracing for 5G investment boom. Upgrade to BUY.

ZTE Corp recorded a net profit of Rmb5.1b for 2019 vs a net loss a year ago, reflecting business normalisation following the exceptional US$1b fine issued by the US government. Looking ahead, as the world’s fourth largest telecom equipment vendor, we believe ZTE is well positioned to capture the 5G investment boom globally, particularly in the Chinese market. Thus, we upgrade the counter to BUY after the recent share price correction, with a target price of HK$29.00.

Feasibility Study Results in December to be a Catalyst for this Junior

Feasibility Study Results in December to be a Catalyst for this Junior