＜Research＞Nomura Lowers ZTE (00763.HK) TP to $22, Rates Buy

　　A recent Nomura report has revealed that Nomura, while maintaining a Buy rating on ZTE (00763.HK) +0.040 (+0.224%) Short selling $9.39M; Ratio 7.529% , lowered its TP from $23 to $22 in the belief that ZTE should deliver stable growth in the telecom equipment sector in 2Q as the muted China market was offset by better momentum in the overseas market.

　　Benefiting from demand pickup in smartphone, home broadband, and enterprise server products, ZTE's consumer and enterprise segments stayed on the recovery path. The broker, however, still lowered its revenue estimates for 2024 to 2026 by 0.1%-0.5% to reflect the change of product mix.

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　　Nomura believes that the negative sentiment from telecom operators capex downtrend has already been largely reflected in the current share price. ZTE's TP is equivalent to 9x forecast P/E for 2025, with earnings CAGR of 8% for 2024 to 2026 incorporated. Its current price reflects 7x forecast P/E for 2025.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-23 16:25.)

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