CITIC Securities research report pointed out that since July, the three operators have intensively purchased large orders of 60 billion base stations, the construction of 5g base stations is about to enter a small peak in the second half of the year, and the prosperity of the communication equipment industry has improved significantly. In the 5g era, the domestic duopoly pattern of ZTE
was established. The total share of mobile & Radio and television 700m centralized purchase and Telecom & Unicom 2.1g centralized purchase exceeded 90%, and the share of ZTE increased to more than 30%. In addition, in terms of ICT equipment, ZTE's share of centralized procurement in China Mobile's high-end routers, data center switches, servers and other fields continued to break through. We believe that the increase in the share of 5g equipment + ICT equipment will become a strong driving force for the company's performance growth, and the accelerated development of its subsidiary ZTE microelectronics is expected to drive the company's valuation. We give the company 30 times PE of predicted net profit in 2022, corresponding to the target price of 48 yuan, maintain the "buy" rating and focus on recommendation.