[ET Net News Agency, 10 September 2020] Jefferies Research lowered its target price for
ZTE Corporation (00763) to HK$16.77 from HK$18.39 and maintained its "underperform"
rating.
The research house said ZTE's core operating profit fell 27.5% in 1H. For 2Q, its core
operating profit dropped 73%. But opex in 1H fell 1.6% likely due to COVID, suggesting
more core OP pressure in 2H.
Jefferies roughly estimated that the gross margin of 5G equipment could be as low as 20%
to 23%. Its revised profit forecasts represent a 20% to 30% cut from its previous
forecasts in the next three years and are 20% to 40% below consensus.
Jefferies said ZTE's gross margin will be dragged down by 5G equipment. (KL)
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00763 ZTE
Nominal 
15.640 -0.260 (-1.635%) Research Report
10/09/2020 14:03
{I-bank focus}Jefferies cuts ZTE Corp (00763) to HK$16.77
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
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