Financials ZTE Corporation

Equities

000063

CNE000000TK5

Communications & Networking

End-of-day quote Shenzhen S.E. Other stock markets 06:00:00 2024-04-25 pm EDT			5-day change	1st Jan Change
28.74 ^CNY	+3.38%		+2.53%	+8.53%

Apr. 25	Agency bars Chinese telecom carriers from offering US broadband services	RE
Apr. 25	Net neutrality rules to be restored in US agency vote	RE

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	138,979	142,125	146,171	114,433	118,615	127,772	-	-
Enterprise Value (EV) ¹	142,872	141,743	135,290	103,837	90,208	99,472	93,958	90,743
P/E ratio	29 x	36.6 x	22.8 x	15.1 x	13.5 x	13.3 x	11.8 x	11.3 x
Yield	0.57%	0.59%	0.9%	1.55%	2.58%	2.61%	2.66%	3.31%
Capitalization / Revenue	1.53 x	1.4 x	1.28 x	0.93 x	0.95 x	1 x	0.9 x	0.87 x
EV / Revenue	1.57 x	1.4 x	1.18 x	0.84 x	0.73 x	0.77 x	0.66 x	0.62 x
EV / EBITDA	13.5 x	15.7 x	10.5 x	8.08 x	6.4 x	7 x	5.75 x	5.35 x
EV / FCF	51.4 x	37.6 x	13.2 x	39.2 x	6.73 x	7.85 x	10.1 x	9.18 x
FCF Yield	1.95%	2.66%	7.58%	2.55%	14.9%	12.7%	9.91%	10.9%
Price to Book	5.19 x	3.59 x	3.08 x	2.09 x	1.86 x	1.8 x	1.64 x	1.5 x
Nbr of stocks (in thousands)	4,227,429	4,610,461	4,726,548	4,736,113	4,783,252	4,783,252	-	-
Reference price ²	35.39	33.65	33.50	25.86	26.48	28.74	28.74	28.74
Announcement Date	3/27/20	1/22/21	3/8/22	3/10/23	3/8/24	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	90,737	101,451	114,522	122,954	124,251	128,383	142,458	146,963
EBITDA ¹	10,614	9,036	12,859	12,853	14,098	14,213	16,341	16,967
EBIT ¹	7,552	5,471	8,676	8,795	9,172	9,930	12,780	13,297
Operating Margin	8.32%	5.39%	7.58%	7.15%	7.38%	7.73%	8.97%	9.05%
Earnings before Tax (EBT) ¹	7,162	5,064	8,499	8,752	10,203	12,443	12,369	12,468
Net income ¹	5,148	4,260	6,813	8,080	9,326	10,319	11,575	11,992
Net margin	5.67%	4.2%	5.95%	6.57%	7.51%	8.04%	8.13%	8.16%
EPS ²	1.220	0.9200	1.470	1.710	1.960	2.160	2.440	2.536
Free Cash Flow ¹	2,780	3,770	10,258	2,650	13,401	8,629	9,315	9,880
FCF margin	3.06%	3.72%	8.96%	2.16%	10.79%	6.72%	6.54%	6.72%
FCF Conversion (EBITDA)	26.19%	41.73%	79.77%	20.62%	95.06%	60.71%	57%	58.23%
FCF Conversion (Net income)	54%	88.51%	150.56%	32.8%	143.7%	83.62%	80.47%	82.39%
Dividend per Share ²	0.2000	0.2000	0.3000	0.4000	0.6830	0.7500	0.7639	0.9518
Announcement Date	3/27/20	1/22/21	3/8/22	3/10/23	3/8/24	-	-	-

¹CNY in Million²CNY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2019 S2	2020 S1	2020 S2	2021 S1	2021 Q4	2021 S2	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2022 S2	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2023 S2	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1	2025 Q2
Net sales ¹	46,127	47,199	54,251	53,071	30,696	61,451	27,930	31,888	32,741	30,395	63,136	29,143	31,562	28,689	34,857	63,546	30,578	33,137	31,520	37,063	33,834	36,642
EBITDA ¹	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	3,533	4,234	2,496	-	-
EBIT ¹	-	2,938	-	-	973.3	-	2,423	2,844	2,516	1,240	3,528	3,113	2,463	2,958	868.8	4,156	3,006	2,872	3,043	2,008	-	-
Operating Margin	-	6.22%	-	-	3.17%	-	8.67%	8.92%	7.68%	4.08%	5.59%	10.68%	7.8%	10.31%	2.49%	6.54%	9.83%	8.67%	9.65%	5.42%	-	-
Earnings before Tax (EBT) ¹	4,924	2,841	2,223	5,527	845.8	2,972	-	-	2,300	1,240	3,540	3,089	2,970	2,402	1,742	4,144	3,207	3,111	3,192	3,247	-	-
Net income ¹	3,677	1,857	2,402	4,079	960	-	-	-	2,254	1,260	3,514	2,642	2,830	2,369	1,485	3,854	2,741	2,697	3,076	1,885	-	-
Net margin	7.97%	3.93%	4.43%	7.69%	3.13%	-	-	-	6.88%	4.15%	5.57%	9.07%	8.97%	8.26%	4.26%	6.06%	8.96%	8.14%	9.76%	5.09%	-	-
EPS ²	-	-	0.5200	-	0.2100	-	0.4700	0.4900	0.4800	0.2700	0.7500	0.5600	0.5900	0.5000	0.3100	0.8100	0.5700	0.5595	0.5307	0.4063	-	-
Dividend per Share	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Announcement Date	3/27/20	8/28/20	1/22/21	8/27/21	3/8/22	3/8/22	4/25/22	8/26/22	10/26/22	3/10/23	3/10/23	4/21/23	8/18/23	10/23/23	3/8/24	3/8/24	4/25/24	-	-	-	-	-

¹CNY in Million²CNY

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	3,893	-	-	-	-	-	-	-
Net Cash position ¹	-	382	10,881	10,596	28,407	28,301	33,814	37,029
Leverage (Debt/EBITDA)	0.3667 x	-	-	-	-	-	-	-
Free Cash Flow ¹	2,780	3,770	10,258	2,650	13,401	12,678	9,315	9,881
ROE (net income / shareholders' equity)	20%	10.2%	14.5%	14.7%	15.2%	14.2%	14.6%	16.6%
ROA (Net income/ Total Assets)	3.81%	2.92%	4.27%	4.62%	4.88%	5.4%	5.82%	6.07%
Assets ¹	135,292	145,932	159,699	174,860	190,957	191,100	199,021	197,732
Book Value Per Share ²	6.820	9.380	10.90	12.40	14.20	16.00	17.60	19.20
Cash Flow per Share ²	1.760	2.220	3.390	1.600	3.640	3.040	2.730	4.220
Capex ¹	4,667	6,462	5,466	4,928	4,005	4,642	4,682	4,548
Capex / Sales	5.14%	6.37%	4.77%	4.01%	3.22%	3.62%	3.29%	3.09%
Announcement Date	3/27/20	1/22/21	3/8/22	3/10/23	3/8/24	-	-	-

¹CNY in Million²CNY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for ZTE Corporation

Trading Rating

Investor Rating

ESG Refinitiv

A-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

28.74 CNY

Average target price

33.8 CNY

Spread / Average Target

+17.60%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Communications & Networking

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ERICSSON	-9.05%	17.46B
JUNIPER NETWORKS, INC.	+17.74%	11.26B

Other Communications & Networking