\u3000\u300 Shenzhen Zhenye(Group)Co.Ltd(000006) 3 Zte Corporation(000063) )
Core view
Event: on March 22, us time (March 23, Beijing time), Zte Corporation(000063) received the judgment of the US court, ruled not to revoke Zte Corporation(000063) 's probation without any penalty, and confirmed that the term of office of the inspector would end on March 22, 2022 (US time). The five-year compliance observation period from 2017 ends.
At the end of the five-year compliance observation period, the company ushered in a new situation. During the five years from 2017 to 2022, Zte Corporation(000063) paid a total fine of US $2.29 billion to the United States, and the company's business activities were greatly affected. This judgment means that Zte Corporation(000063) will end the five-year compliance observation period since 2017, the US sanctions against ZTE have come to an end, and the company is about to start a new journey.
The performance in 2021 is basically in line with expectations. Previously, on March 9, Zte Corporation(000063) released the financial report for 2021, with double-digit growth in revenue and net profit attributable to parent company. The company achieved operating income of 114.52 billion yuan (+ 12.9%, YoY), net profit attributable to parent company of 6.81 billion yuan (+ 59.9%, YoY), net profit not attributable to parent company of 3.31 billion yuan (+ 219.2%, YoY), basic earnings per share of 1.47 yuan. From the perspective of the company's three major businesses, the operator's network business / government enterprise business / consumer business achieved revenue of 75.71 billion yuan / 13.08 billion yuan / 25.73 billion yuan respectively, with a year-on-year increase of 2.3% / 16.0% / 59.2%.
The traditional business has steadily consolidated its foundation, and the second curve has accelerated the expansion. 2022 is the opening year of Zte Corporation(000063) strategic transcendence period. While the traditional CT business is steadily consolidating, the company continues to strengthen its expansion in it business, digital energy and terminal fields, and actively creates the second growth curve of the company. In the field of it, the company focuses on building the bottom competitiveness of IT products such as server and storage, operating system and database; In the field of digital energy, establish a digital energy business department to enter the new energy market; In the terminal field, set up a smart home product line.
Profit forecast and investment suggestions
Based on the operator's capital expenditure plan in 2022 and the company's operation in 2021, we reduced the revenue of the operator's network business and increased the revenue of consumer terminals. We predict that the net profit attributable to the parent company in 22-24 years will be 7981 / 9375 / 10733 million yuan respectively (the previous value is 8596 / 988711590 million yuan respectively)
Our Forecast Ltd's earnings per share in 20222024 years are 1.68, 1.98, and 2.27 yuan respectively. The value of the company can be estimated by the comparable company law, which is 21 times the average price earnings ratio of the company adjusted in 2022, corresponding to the target price of 35.28 yuan in 2022, and maintaining the buying rating.
Risk tips
The progress of 5g construction outside China was less than expected, and the trade friction between China and the United States in the field of science and technology exceeded expectations
