Equity Analysis /
Hong Kong

HK : ZTE - One overhang removed

    Mark Po
    Mark Po

    Research Analyst

    CGS-CIMB
    26 March 2022
    Published by

    Shares of ZTE reacted positively after the Company announced that a US judge officially ended ZTE’s five-year probation. This is in line with our previous discussion that clarity after a probation hearing would be a catalyst, and the share price reaction after the announcement confirms our view. We expect ZTE to deliver solid top- and bottom-line growth, given the acceleration of the carrier network business. We reiterate our ADD rating, with a target price of HK$30.27 (based on 15x 2022F P/E).