\u3000\u300 Shenzhen Zhenye(Group)Co.Ltd(000006) 3 Zte Corporation(000063) )
Core view:
Company event: Zte Corporation(000063) announced that on March 22 (US time), the company received a court judgment and ruled not to revoke Zte Corporation(000063) 's probation (i.e. the probation will expire on March 22, 2022 (US time) without any penalty), and confirmed that the term of office of the inspector will end on March 22, 2022 (US time).
At the end of the compliance observation period, the company's international reputation is expected to improve. As early as March 8, 2017, the company announced that the agreement reached between Zte Corporation(000063) and DOJ (U.S. Department of Justice) set a three-year observation period. During the observation period, the independent compliance supervisor approved and appointed by the U.S. government will supervise the company's compliance with U.S. export control laws and the performance of its obligations under the agreement, and issue an annual report. On October 8, 2018, the company announced to extend the term of office of the supervisor appointed by the court until March 22, 2022. At present, the company announced today that the term of office of the supervisor will end on March 22, 2022 (US time), indicating that the company's compliance has fully withstood the test of internationalization procedures, and the road of internationalization is expected to be further opened in the future, so as to realize the double improvement of business reputation outside China. By 2021, the company's international market revenue had reached 36.45 billion yuan, accounting for 31.83%, with a year-on-year increase of 9.1%. With the gradual emergence of the company's technical advantages, the company's overseas business performance is expected to exceed expectations in the future.
The increase of share and the marginal improvement of the company's operating performance are expected to open a new cycle of rapid development. According to the 2021 annual report, during the reporting period, the company achieved a revenue of 114.52 billion yuan, a year-on-year increase of 12.9%, and a net profit attributable to the parent company of 6.81 billion yuan, a year-on-year increase of 59.9%. The company has deeply participated in the large-scale construction of 5g, and the operator market has been steadily improved. The wireless product side has been commercially available at more than 900000 sites in more than 30 networks around the world; The optical network market on the side of wired products continues to be the industry leader; The core router has won the bid for centralized purchase of three operators for many times; The company's market share in operators is expected to continue to grow. Government and enterprise businesses have grown rapidly, focusing on digital transformation and upgrading. The scale of server and storage products is the leading enterprise in finance, Internet, energy and other industries; The company actively expands applications in various industries and is expected to bring new growth points to the company. Terminal services continued to recover and new services accelerated their layout. The sales of 5g mobile Internet products have exceeded 30 countries and regions, the scale of home information terminals has jumped, the delivery has increased by more than 50% year-on-year, and the cumulative delivery volume is 580 million units, maintaining a leading position in the industry; At the same time, the company will expand production scale, increase brand, channel and market strategy support, promote product sales growth, and is expected to start a new engine for terminal performance growth.
The leading recovery boosted confidence, and the valuation of the communication industry is expected to rise from the bottom. 5g application and the new infrastructure of "computing from the east to the west" are the key directions of communication exceeding expectations in the future. Valuation first and then fundamentals are expected to rise. It's suggested to focus on the subdivideareas and targets: the light module of the cosmic infrastructure of the meta universe '' '' '' '' '''s proposed focus: the light module of the infrastructure of the meta universe ''s bid: the light module of the infrastructure of the meta universe's infrastructure: 3 Zuming Bean Products Co.Ltd(003030) 30303030303030303030303030303030303030303030303030303030303030303030303030303030303030303030303030303030303030303030303030303030303030 \ ( Montnets Cloud Technology Group Co.Ltd(002123) ). At the same time, the communication operator China Mobile (600941) also needs to focus on as a long-term configuration direction.
Profit forecast and investment suggestions. We are optimistic about the high growth trend of the company in the future. Combined with the company's annual performance report, we maintain the company's predicted net profit attributable to the parent company from 2022 to 2024 of 8.642 billion, 10.105 billion and 11.696 billion, corresponding to EPS of 183, 214 and 247 yuan, corresponding to PE of 14.23, 12.17 and 10.51 times, and maintain the "recommended" rating.
Risk tip: the price of raw material chips continues to rise; Global epidemic impact and foreign policy uncertainty; 5g commercial promotion is less than expected; Market competition intensifies, and the market promotion of new products is less than expected.
