Daiwa: lowers profit forecast for ZTE (00763.HK), target price reduced to 31.5 Hong Kong dollars.

According to the Wise Finance APP, Morgan Stanley released a research report stating that the risk return analysis of ZTE Corporation (00763.HK) has been updated. Based on lower-than-expected performance in the third quarter of this year, the company's revenue forecasts for 2025 to 2027 have been revised down to 5%, 6%, and 7%, while gross profit margin forecasts have been lowered by 0.9%, 0.5%, and 0.4% to reflect lower-than-expected domestic 5G business revenue. Therefore, Morgan Stanley has lowered the company's profit forecasts for 2025 to 2027 by 11.1%, 12.5%, and 10.9% respectively, and correspondingly reduced the target price from HKD 35 to HKD 31.5, maintaining a "market perform" rating.