Equity Analysis /
Hong Kong

HK : ZTE - Solid 1Q22 results

    Mark Po
    Mark Po

    Research Analyst

    CGS-CIMB
    26 April 2022
    Published by

    ZTE reported a net profit of Rmb2,216.7m in 1Q22, up 1.6% yoy, with revenue of Rmb27,930.3m, up 6.4% yoy. Excluding the impact of disposal gains in 1Q21, the performance of ZTE’s core operations was strong, given stable top-line growth and margin improvement. Despite the increasing uncertainties, we don't expect a cut in guidance by ZTE. We maintain our net profit forecasts for 2022F–2024F. We reiterate our ADD rating, with a target price of HK$30.27.