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Electronic Technology

ZTE Corp.

  • 14.12 HKD
  • -0.12
  • -0.84%
  • China
    Sep 21, 2018
  • Ticker
    HKG(763)
  • Prev. close
    14.24
  • Market cap (HKD)
    83,773.10M
  • Market cap (USD)
    10,719.71M
  • 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 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

  • Chief Executive Officer & 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
  • Member-Supervisory Board: Xiao Yue Xia

Shareholders

  • Capital Research & Management Co. (World Investors) (5.0%)
  • The Vanguard Group, Inc. (3.2%)
  • UBS AG (Investment Management) (2.7%)
  • BlackRock Fund Advisors (2.0%)
  • Baillie Gifford & Co. (1.8%)
  • BlackRock International Ltd. (1.1%)
  • Invesco Hong Kong Ltd. (0.8%)
  • BlackRock Advisors (UK) Ltd. (0.5%)
  • BlackRock Investment Management (UK) Ltd. (0.5%)
  • Baring Asset Management (Asia) Ltd. (0.3%)

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 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
  • Telefonaktiebolaget LM Ericsson Class B
  • ADTRAN, Inc.
  • DASAN Zhone Solutions Inc
  • NETGEAR, Inc.
  • UTStarcom Holdings Corp.
  • D-Link Corporation
  • CalAmp Corp.
  • Technicolor SA
  • Ciena Corporation
  • Mitel Networks Corporation
  • CommScope Holding Co., Inc.
  • Ribbon Communications Inc.
  • Calix, Inc.
  • BlackBerry Limited
  • China Techfaith Wireless Communication Technology Ltd. Sponsored ADR
  • ClearOne, Inc.
  • Archos SA
  • ARRIS International Plc
  • Infinera Corporation
  • Inseego Corp.
  • ITI Limited
  • Amdocs Limited
  • RadiSys Corporation
  • Heliocentris Energy Solutions AG
  • KMW Inc
  • Baran Group Ltd.
  • Ceragon Networks Ltd
Last Updated on 21 Sep, 2018

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