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Electronic Technology

ZTE Corp.

  • 0.00 HKD
  • 0.00
  • 0.00%
  • China
    Apr 26, 2018
  • Ticker
    HKG(763)
  • Prev. close
    --
  • Market cap (HKD)
    152,953.81M
  • Market cap (USD)
    19,491.76M
  • Shares
    4,192.67M

Company Background

ZTE is a major Chinese telecommunications equipment maker based in Shenzhen, Guangdong Province. It is often compared with its larger rival, Huawei Technologies. The company's three core businesses are telecommunications equipment, smartphones and other mobile terminals, as well as system services, similar to Huawei's. It has also tapped into foreign markets, with overseas sales accounting for about 50% of the company's total.

Founded in 1985, ZTE was originally a state-owned company, under the Shenzhen municipal government. It listed on the Shenzhen Stock Exchange in 1997 and on the Hong Kong Exchanges and Clearing in 2004. As of the end of March 2015, Zhongxingxin, a state-owned entity, is the company's largest shareholder, owning some 30% of the company.

Founder and Chairman Hou Weigui handed over control of ZTE to Executive Director, Shi Lirong who has been President since 2010. The spread of 4G, or fourth-generation, mobile phone services has boosted large-scale investment for telecommunications facilities, providing a tailwind for the company. Meanwhile, ZTE's presence has declined in the smartphone market because of fierce competition.

Business Summary

ZTE Corp. engages in the design, development, manufacture, and sale of telecommunication equipment and network solutions. It operates through the following segments: Carriers' Networks Business; Consumer Business; and Government and Corporate Network Business. The Carriers' Network Business segment includes wireless networks, wire line networks, core networks, telecommunication software systems and services, and other technologies and product solutions. The Consumer Business segment focuses in smart devices to customers while also catering to the requirements of industry and corporate clients through the development, production and sales of products such as smart phones, mobile broadband, family terminals, fusion terminals, wearable devices, as well as the provision of related software application and value-added services. The Government and Corporate Network Business segment provides telecommunications software systems such as operation support systems and also provides fee-based services. The company was founded in 1985 and is headquartered in Shenzhen, China.

Financial Highlights

Dec 2017 HKDUSD
Revenue124,387.12M15,961.76M
Gross Profit37,590.02M4,823.67M
Operating income2,696.42M346.01M
Income before tax7,895.33M1,013.15M
Net income5,267.49M675.94M
EBITDA5,698.17M731.20M
Diluted EPS1.240.15
Dividends Per Share0.400.05
Total Assets173,053.33M22,137.22M
Total liabilities129,766.69M16,599.93M
Total equity37,894.30M4,847.49M
Operating cash flow8,119.99M1,041.98M
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 94,202.90M 101,648.37M 122,701.88M 117,268.29M 124,387.12M
Gross Profit 26,826.90M 31,112.07M 37,105.96M 35,049.15M 37,590.02M
Operating income -178.61M 2,367.68M 4,672.34M 2,858.63M 2,696.42M
Income before tax 2,262.73M 4,519.71M 5,230.27M -949.82M 7,895.33M
Net income 1,712.98M 3,314.42M 3,956.86M -2,754.45M 5,267.49M
EBITDA 2,023.35M 4,665.50M 7,279.63M 5,740.54M 5,698.17M
Diluted EPS 0.41 0.80 0.94 -0.66 1.24
Dividends Per Share 0.03 0.21 0.29 0 0.40
Total Assets 131,256.20M 137,815.59M 148,696.47M 158,025.19M 173,053.33M
Total liabilities 100,996.75M 104,950.60M 108,084.71M 122,811.35M 129,766.69M
Total equity 28,757.03M 30,997.61M 35,304.01M 29,364.96M 37,894.30M
Operating cash flow 3,479.40M 3,358.10M 9,941.02M 7,686.71M 8,119.99M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 12,144.80M 13,107.99M 15,827.24M 15,107.10M 15,961.76M
Gross Profit 3,458.57M 4,012.03M 4,786.27M 4,515.21M 4,823.67M
Operating income -23.02M 305.32M 602.68M 368.26M 346.01M
Income before tax 291.71M 582.83M 674.64M -122.36M 1,013.15M
Net income 220.84M 427.40M 510.39M -354.84M 675.94M
EBITDA 260.85M 601.63M 938.99M 739.52M 731.20M
Diluted EPS 0.05 0.10 0.12 -0.08 0.15
Dividends Per Share 0.00 0.02 0.03 0 0.05
Total Assets 16,928.09M 17,771.53M 19,186.26M 20,382.06M 22,137.22M
Total liabilities 13,025.53M 13,533.54M 13,946.14M 15,840.18M 16,599.93M
Total equity 3,708.79M 3,997.19M 4,555.26M 3,787.48M 4,847.49M
Operating cash flow 448.57M 433.04M 1,282.28M 990.24M 1,041.98M

Valuation Measures

Dec 2017
PER23.35
ROA3.18%
ROE15.66%
Operating margin2.16%
Profit margin4.23%

Key executives

  • President & Executive Director: Xian Ming Zhao
  • CFO, Non-Executive Director & EVP: Zai Sheng Wei
  • Chief Technology Officer & Executive VP: Hui Jun Xu
  • Chief Compliance Officer: Gang Cheng
  • Executive Vice President: Jian Zhou Chen

Shareholders

  • Capital Research & Management Co. (World Investors) (5.0%)
  • Baillie Gifford & Co. (4.9%)
  • Government of China (4.4%)
  • The Vanguard Group, Inc. (3.3%)
  • BlackRock Fund Advisors (2.9%)
  • City National Rochdale LLC (0.8%)
  • FIAM LLC (0.7%)
  • BlackRock Advisors (UK) Ltd. (0.6%)
  • Candriam Belgium SA (0.5%)
  • Matthews International Capital Management LLC (0.5%)

Contact Details

  • Website:http://www.zte.com.cn
  • Address: High-Tech Road South, No. 55, Shenzhen, 518057, China
  • Phone: +86.755.26770000

Related Companies

  • ZTE Canada, Inc.
  • ZTE Agribusiness Co., Ltd.
  • ZTE Trunking Technology Corp.
  • ZTE (UK) Ltd.
  • Zhongxing Corp. SLU
  • ZTE Austria GmbH
  • ZTE Energy (Tianjin) Co., Ltd.
  • ZTE Utility Co., Ltd.
  • GCI Science & Technology (M) Sdh. Bhd.
  • Zhuhai Guangtong Automobile Co., Ltd.
  • ZTE Corp. (Hong Kong)
  • ZTE Corp. (United Arab Emirates)
  • ZTE Software Technology (Nanchang) Co., Ltd.
  • ZTE ITS Ltd.
  • ZTE Norway AS
  • ZTE Intelligent IOT Technology Co. Ltd.
  • ZTE Parsian
  • Jiaxing Xinghe Capital Management Co. Ltd.
  • ZTEV Corp.
  • Nubia Technology Co., Ltd.
  • ZTE Microelectronics Technology Co., Ltd.
  • ZTE Venture Capital (Tianjin) Investment Management Co. Ltd.
  • ZTE (Australia) Pty Ltd.
  • Newinfo Holdings Ltd.
  • Kaznurtel Ltd. Liability Co.
  • Shanghai Zhongxing Software Co. Ltd.
  • ZTE Services Deutschland GmbH
  • ZTE Portugal
  • Guangdong New Pivot Technology & Service Co. Ltd.
  • ZTE Capital Management Co. Ltd.

Competitors

  • Nokia Oyj
  • LM Ericsson Telefon AB Class B
  • ADTRAN, Inc.
  • NETGEAR, Inc.
  • DASAN Zhone Solutions Inc
  • UTStarcom Holdings Corp.
  • D-Link Corporation
  • CalAmp Corp.
  • Technicolor SA
  • Mitel Networks Corporation
  • CommScope Holding Co., Inc.
  • Ribbon Communications Inc.
  • Calix, Inc.
  • Ciena Corporation
  • ClearOne, Inc.
  • Archos SA
  • ARRIS International Plc
  • BlackBerry Limited
  • China Techfaith Wireless Communication Technology Ltd. Sponsored ADR
  • Infinera Corporation
  • Inseego Corp.
  • ITI Limited
  • Amdocs Limited
  • RadiSys Corporation
  • Heliocentris Energy Solutions AG
  • KMW Inc
  • Baran Group Ltd.
  • Ceragon Networks Ltd
  • Display Tech Co., Ltd.
Last Updated on 26 Apr, 2018

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