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Chinese telecom equipment maker selling 5G network gear, smartphones/devices and enterprise/government IT systems.
Chinese telecom equipment maker selling 5G network gear, smartphones/devices and enterprise/government IT systems.
Earns mostly from carriers' network build-outs, so sales come in large, lumpy contracts timed to their spending cycles, with China's three state carriers the biggest buyers. It is controlled through state-linked shareholders but listed. In 2018 US export curbs briefly cut it off from American components before a settlement.
In one line: China's Ericsson/Nokia.
Moat: narrow (IP / patents, scale, customer qualification). Established telecom-carrier relationships and patent portfolio, but faces the same Western sanctions as Huawei.
Headquarters: Shenzhen, China · Founded: 1985 · Employees: 65,095
Size ZTE (000063.SZ) is a China Information Technology company (Telecommunications Equipment) with a market value of $19.0B, the 118th largest of 4,839 China companies the cockpit tracks. Shares closed at CN¥28.20 on 6 Nov 2026.
Performance Over six months the shares fell 23.2%, against -27.1% for the median peer and -16.4% for the China market (cap-weighted) — 9th highest of 18 in its peer set.
Growth Revenue grew 14.0% over the last twelve months (peer median +8.1%); the operating margin is 1.4% (peer median 9.3%).
Valuation It trades at 24.2× forward earnings against a peer median of 18.4× (5th most expensive of 17).
Price implies For today's price to make sense, revenue must grow about 19% a year for seven years (Req g). Recent delivered growth is +6%, so the hurdle is +13 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 3.9 points below its cost of capital (7.3% WACC).
Next results Next results expected around 5 Mar 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | CN¥150B | CN¥133B | CN¥121B | CN¥124B | CN¥123B |
| Revenue growth | — | +10% | -2% | +1% | — |
| Gross profit | CN¥40.4B | CN¥36.7B | CN¥42.4B | CN¥47.7B | CN¥42.4B |
| EBITDA | n/a | CN¥7.86B | CN¥14.0B | CN¥14.5B | CN¥13.2B |
| Net income | CN¥4.36B | CN¥5.62B | CN¥8.42B | CN¥9.33B | CN¥8.08B |
| Free cash flow | CN¥2.39B | CN¥2.02B | CN¥9.45B | CN¥14.7B | CN¥3.73B |
| Capital expenditure | CN¥3.63B | CN¥3.89B | CN¥4.01B | CN¥4.00B | CN¥4.95B |
| Total debt | CN¥97.1B | CN¥80.6B | CN¥69.0B | CN¥67.8B | CN¥57.4B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| ZTE 000063.SZ | $19.0B | -23% | +14% | 1% | 24.2× | 19.0% |
| Nokia NOKIA.HE | $44.3B | -37% | +4% | 14% | 19.2× | 17.4% |
| Fiberhome Telecommunication Technologies 600498.SS | $5.50B | -42% | +16% | 1% | 21.5× | 12.8% |
| Cisco CSCO | $369B | -3% | +12% | 25% | 18.4× | 15.0% |
| Ciena CIEN | $34.5B | -56% | +33% | 14% | 23.4× | 29.0% |
| Nec 6701.T | $36.3B | +5% | +7% | 12% | 18.6× | 5.5% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | 000063.SZ | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -3.8% | -7.6% | 7th highest of 18 |
| 6-month return | -23.2% | -27.1% | 9th highest of 18 |
| Distance from 52-week high | -46.3% | -46.1% | 8th lowest of 18 |
| Revenue growth (TTM) | +14.0% | +8.1% | 9th highest of 18 |
| Operating margin | 1.4% | 9.3% | 5th lowest of 18 |
| Forward P/E | 24.2× | 18.4× | 5th most expensive of 17 |
| Growth the price implies (Req g, 7 yrs) | 19.0% | 15.1% | 5th most demanding of 13 |
| Growth delivered (Del g) | +5.6% | +7.4% | 5th lowest of 13 |
| Hurdle (Req g minus delivered) | +13.4 pp | +10.0 pp | 5th most demanding of 13 |
| ROIC minus cost of capital | -3.9 pp | -0.7 pp | 4th lowest of 18 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| ZTE 000063.SZ | China | $19.0B | -23% | +14% | 1% | 24.2× | 19.0% | +5.6% |
| ZTE 0763.HK | Hong Kong | $19.0B | -27% | +20% | 1% | 14.6× | 17.5% | +4.9% |
| Accton Technology 2345.TW | Taiwan | $21.6B | -49% | +82% | 14% | 12.5× | 4.5% | +35.4% |
| TCL Technology 000100.SZ | China | $15.0B | +7% | +5% | 0% | 13.1× | -4.7% | +19.1% |
| Huaqin 603296.SS | China | $12.7B | -13% | +28% | 2% | 17.1× | n/a | n/a |
| Shenzhen Transsion 688036.SS | China | $11.6B | +13% | -1% | 5% | 21.8× | n/a | n/a |
| Ciena CIEN | United States | $34.5B | -56% | +33% | 14% | 23.4× | 29.0% | +6.2% |
| Telefonaktiebolaget LM Ericsson ERIC-A.ST | Sweden | $34.9B | -9% | -4% | 14% | 17.3× | -8.7% | +0.4% |
| Ubiquiti UI | United States | $35.9B | -30% | +27% | 36% | 33.5× | 22.2% | +11.5% |
| China Spacesat 600118.SS | China | $9.75B | -46% | +6% | 1% | 531.4× | n/a | n/a |
| ViaSat VSAT | United States | $8.81B | -9% | +1% | 2% | n/a | 42.8% | +15.5% |
| Nokia NOKIA.HE | Finland | $44.3B | -37% | +4% | 14% | 19.2× | 17.4% | -1.9% |
| Yealink Network Technology 300628.SZ | China | $7.50B | +8% | +17% | 46% | 16.2× | 4.3% | +17.0% |
| Hangzhou Hikvision Digital Technology 002415.SZ | China | $49.1B | -3% | +8% | 19% | 17.5× | 2.6% | +7.8% |
| Zhejiang Dahua Technology 002236.SZ | China | $7.04B | -21% | +7% | 7% | 12.3× | n/a | n/a |
| Shenzhen Sunway Communication 300136.SZ | China | $6.14B | -54% | +2% | 9% | 47.1× | 30.6% | +6.9% |
| Fiberhome Telecommunication Technologies 600498.SS | China | $5.50B | -42% | +16% | 1% | 21.5× | 12.8% | +3.4% |
| Jiang Su Etern 600105.SS | China | $4.82B | -48% | +49% | 12% | 24.4× | n/a | n/a |