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Electronic Technology

ZTE Corp.

  • 18.36 HKD
  • -0.32
  • -1.71%
  • China
    Aug 16, 2019
  • Ticker
    HKG(763)
  • Prev. close
    18.68
  • Market cap (HKD)
    121,943M
  • Market cap (USD)
    15,549M
  • 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 information and telecommunication technology products. The company has the most complete telecommunications product line, covering every vertical sector of wireless networks, core networks, access & bearer networks, services and terminals markets. Its business segments include Carrier Network, Government, Corporate and Consumer Businesses. Its Carrier Network division offers wireless and wired access, bearer networks, core networks, and telecommunication software systems and services. Its Government and Corporate division provides information solutions such as communication networks, internet of things, large data, and cloud computing products. Its Consumer division develops, produces, and sells smart phones, mobile data terminals, and home information terminals. ZTE was founded by Wei Gui Hou on February 7, 1985 and is headquartered in Shenzhen, China.

Financial Highlights

Dec 2018 HKDUSD
Revenue100,531.02M12,826.85M
Gross Profit30,378.64M3,876.04M
Operating income1,144.13M145.98M
Income before tax-7,761.59M-990.30M
Net income-8,271.82M-1,055.41M
EBITDA4,114.00M524.91M
Diluted EPS-1.97-0.25
Dividends Per Share00
Total Assets147,506.04M18,840.14M
Total liabilities117,049.03M14,950.03M
Total equity26,020.18M3,323.41M
Operating cash flow-8,717.95M-1,112.33M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 101,648.37M 122,701.88M 117,268.29M 124,387.12M 100,531.02M
Gross Profit 31,112.07M 37,105.96M 35,049.15M 37,590.02M 30,378.64M
Operating income 2,367.68M 4,672.34M 2,858.63M 2,696.42M 1,144.13M
Income before tax 4,519.71M 5,230.27M -949.82M 7,895.33M -7,761.59M
Net income 3,314.42M 3,956.86M -2,754.45M 5,267.49M -8,271.82M
EBITDA 4,665.50M 7,279.63M 5,740.54M 5,698.17M 4,114.00M
Diluted EPS 0.80 0.94 -0.66 1.24 -1.97
Dividends Per Share 0.21 0.29 0 0 0
Total Assets 137,815.59M 148,696.47M 158,025.19M 173,053.33M 147,506.04M
Total liabilities 104,950.60M 108,084.71M 122,811.35M 129,766.69M 117,049.03M
Total equity 30,997.61M 35,304.01M 29,364.96M 37,894.30M 26,020.18M
Operating cash flow 3,358.10M 9,941.02M 7,686.71M 8,119.99M -8,717.95M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 13,107.99M 15,827.24M 15,107.10M 15,961.76M 12,826.85M
Gross Profit 4,012.03M 4,786.27M 4,515.21M 4,823.67M 3,876.04M
Operating income 305.32M 602.68M 368.26M 346.01M 145.98M
Income before tax 582.83M 674.64M -122.36M 1,013.15M -990.30M
Net income 427.40M 510.39M -354.84M 675.94M -1,055.41M
EBITDA 601.63M 938.99M 739.52M 731.20M 524.91M
Diluted EPS 0.10 0.12 -0.08 0.15 -0.25
Dividends Per Share 0.02 0.03 0 0 0
Total Assets 17,771.53M 19,186.26M 20,382.06M 22,137.22M 18,840.14M
Total liabilities 13,533.54M 13,946.14M 15,840.18M 16,599.93M 14,950.03M
Total equity 3,997.19M 4,555.26M 3,787.48M 4,847.49M 3,323.41M
Operating cash flow 433.04M 1,282.28M 990.24M 1,041.98M -1,112.33M

Valuation Measures

Dec 2018
PER--
ROA-5.16%
ROE-25.88%
Operating margin1.13%
Profit margin-8.22%

Key executives

  • President, CEO & Executive Director: Ziyang Xu
  • Chief Financial Officer & Executive Vice President: Li Ying
  • Chief Technology Officer & Executive VP: Hui Jun Xu
  • Executive Vice President: Sheng Qing Pang
  • Executive Director & Executive Vice President: Jun Ying Gu

Shareholders

  • Capital Research & Management Co. (World Investors) (5.0%)
  • The Vanguard Group, Inc. (3.5%)
  • UBS AG (Investment Management) (2.7%)
  • BlackRock Fund Advisors (2.1%)
  • Baillie Gifford & Co. (2.1%)
  • Merian Global Investors (UK) Ltd. (1.8%)
  • Zhong Ou Asset Management Co., Ltd (1.0%)
  • BlackRock Advisors (UK) Ltd. (0.6%)
  • China Southern Asset Management Co., Ltd. (0.6%)
  • BlackRock Investment Management (UK) Ltd. (0.5%)

Contact Details

  • Website:http://www.zte.com.cn
  • Address: No. 55 Siciene & Tech South Road, Nanshan District, Shenzhen, 518057, China
  • Phone: +86.755.26770282

Related Companies

  • ZTE (Malaysia) Corp. Sdn. Bhd.
  • ZTE (Nanjing) Co., Ltd.
  • ZTE Zhongchuang Kongjian (Xi'an) Investment Mgmt Co., Ltd.
  • ZTE (Kunming) Smart City Industry Research Institute Co., Ltd.
  • Wuhan Zte Smart City Research Institution Co., Ltd.
  • ZTE Wangkun Infomation Technology (Shanghai) Co., Ltd.
  • ZTE Xi'an Co., Ltd.
  • Xi'An ZTE IOT Terminal Co., Ltd.
  • Zte Kela Technology (Suzhou) Co., Ltd.
  • Shenzhen ZTE Cloud Service Co., Ltd.
  • Zte Singapore Pte Ltd.
  • Whale Cloud Singapore Pte Ltd.
  • Xi'an ZTE Communication Terminal Technology Co., Ltd.
  • ZTE Deutschland GmbH
  • Shenzhen ZTE Software Corp.
  • 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

Competitors

  • Nokia Oyj
  • Telefonaktiebolaget LM Ericsson Class B
  • ADTRAN, Inc.
  • NETGEAR, Inc.
  • DASAN Zhone Solutions Inc.
  • UTStarcom Holdings Corp.
  • CommScope Holding Co., Inc.
  • Technicolor SA
  • Ekinops SA
  • CalAmp Corp.
  • Ciena Corporation
  • Infinera Corporation
  • Calix, Inc.
  • BlackBerry Limited
  • China Techfaith Wireless Communication Technology Ltd. Sponsored ADR
  • Heliocentris Energy Solutions AG
  • ClearOne, Inc.
  • Avaya Holdings Corp.
  • Archos SA
  • AFCON Holdings Ltd
  • Telrad Networks Ltd.
  • Foxconn Industrial Internet Co., Ltd. Class A
  • Inseego Corp.
  • KMW Inc
  • Doosan Corporation
  • Ceragon Networks Ltd
Last Updated on 16 Aug, 2019

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