ZTE provides telecommunications equipment and network solutions.
In the future, travel will improve people's perception through various sensors, and realize vehicle-to-vehicle, vehicle-to-road collaboration through 5G signal transmission, including cloud computing.
ZTE's annual report shows that its net profit was 1.47 billion, an increase of 118.8% year-on-year, and it returned to the normal level of development. “Employee payables” increased by 52.1% over the same period, and “wages and benefits and bonuses” also increased by 25%, indicating that the talent pool is recovering. ZTE also proposed to attract more than 5,000 5G talents.
ZTE's main business has been completely restored, and no core R & D talents have been lost. Most international operators still maintain confidence and patience with ZTE. The company is confident to resume rapid development by focusing on the main business and the 5G main channel.
It is estimated that from 2020 to 2022, the net profit attributable to mothers will be 63/83/10 billion yuan, corresponding to PE32, 24, and 20 times. Maintain the "Buy" rating.
It is estimated that the company's operating income for 20-22 will be 97.546 / 1102.45 / 126.238 billion yuan, the net profit attributable to the mother will be 6.144 / 70.94 / 79.50 billion yuan, the EPS will be 1.33 / 1.54 / 1.72 yuan, and the corresponding PE will be 33X / 28X / 25X