CMBI: Cuts ZTE (00763.HK) Target Price to HK$31, Business Mix Shift Expected to Dilute Margins

Zhitong Finance APP has learned that CMBI has issued a research report stating that ZTE Corporation (00763.HK) recorded third-quarter revenue up 34% year-on-year and down 9.8% quarter-on-quarter, and net profit up 394.5% year-on-year and down 9.4% quarter-on-quarter; in response to the relatively strong revenue momentum and the impact of short-term business mix changes that continue to dilute profit margins, the bank has lowered its target price from HK$35.5 to HK$31, maintaining a "Buy" rating.