[ET Net News Agency, 17 July 2018] Citi Research lowered its target price for ZTE
Corporation (00763) to HK$12 from HK$15, and reiterated its "sell" rating.
ZTE announced on 15 July that BIS of the US Department of Commerce has terminated its
denial order. ZTE is able to resume components supply from its US suppliers thereafter.
The research house said it takes longer time than market expectations to lift the ban on
ZTE, which together with a harsh settlement agreement with BIS, could lead to increased
risk of ZTE's overseas market share.
ZTE guided in its profit warning on 13 July that ZTE expects net loss of Rmb7bn to
Rmb9bn in 1H 2018, compared with Rmb2.3bn net profit in 1H 2017.
Citi estimated ZTE to see Rmb3.9bn loss in FY2018, and cut its FY2019-20 earnings
forecasts for ZTE by 5-7%, mainly on lower overseas revenue assumptions. (KL)
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00763 ZTE
Nominal 
15.640 -0.260 (-1.635%) Others
17/07/2018 15:23
[I-bank focus]Citi lowers ZTE Corporation (00763) to HK$12
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