According to a research report published by CMB International, ZTE's third-quarter revenue increased 34% year on year, down 9.8% month on month; net profit rose 394.5% year on year and fell 9.4% month on month; after deducting non-net profit, it rose 363.7% year on year, down 53.8% month on month. Gross margin improved 1.3 percentage points month-on-month to 24.6% during the period. Computing power is still the main driver of growth. In the first nine months, revenue related to computing power increased by more than 70% year on year, accounting for 38% of total revenue. Server and storage revenue increased by more than 70%, and data center revenue increased by nearly 130%. The consumer business was also an important pillar of growth, with household and personal terminals accounting for 23% of total revenue in the first nine months. In response to strong revenue momentum and the impact of short-term business portfolio changes that continue to dilute profit margins, the bank raised ZTE's revenue forecast for this year and next two years by 1.1% and lowered its net profit forecast for the full year of this year by 8.7% and the net profit forecast for 2027 by 2.5% to maintain a “buy” rating. The target price was lowered from HK$35.5 to HK$31.

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