After getting rid of the heavy burden of last years fines, ZTE continued to play lightly this year and its performance recovered rapidly. The company expects to achieve net profit of 3.8 billion to 4.6 billion yuan in the first three quarters of this year, with a loss of 7.26 billion yuan in the same period last year.
Orders from 5G are increasing. The reporter of Securities Times E Company has learned exclusively from ZTE that at present, more than 50,000 ZTE 5G base stations have been shipped globally. In terms of 5G terminals, ZTEs cooperative products with domestic e-commerce and operators are in short supply.
Continuous inflows of major funds
Technology stocks continued to lead the day, with communications, computers and electronics leading the way.
Communications 5G as a hot spot throughout the year, 9 plate blue chip also began to rise, ZTE was the first to bear the brunt, afternoon strong rise and stop, which is ZTEs third consecutive day of surge.
After the market, Longhu List data show that the two institutions bought 283 million yuan of seats, Shenzhen stock purchased 269 million yuan and sold 254 million yuan, the first five seats purchased more than 100 million yuan; Everbright Securities Ningbo Liberation South Road sold 277 million yuan.
ZTE also pays attention to the flow of funds. According to wind data, in the last three trading days, ZTEs main net capital inflows reached 3.993 billion yuan, ranking first in A shares. Specifically for a single trading day, on September 5, 6 and 9, the net inflows of major funds were 947 million yuan, 2.067 billion yuan and 977 million yuan, respectively.
When ZTE rose 9.27% on Friday (September 6), about 2 billion main funds were ambushed. With the rise and stop of ZTE on September 9, the above funds also successfully closed down the big gift of the rise and stop.
In fact, 5G and its industrial chain companies are the main target of market capital tracking. In recent years, the market is mainly around 5G and its related application sectors to launch speculation. For example, PCB Company Shanghai Electric Power Co., Ltd., Shennan Circuit Co., Ltd., Shenzhen and Yield Technology Co., Ltd., which rose sharply in the early stage. The stock price of Shanghai Telecom has risen by 200% since June. The certainty of performance growth is the main reason why institutions continue to push up purchases. PCB industry chain benefited from the accelerated progress of 5G, and the companys performance in the first half of the year rose. The net profit of Shanghai Telecom Co. Ltd. in the first three quarters of disclosure increased by 135% year on year.
Strong performance rebound orders in short supply
The semi-annual report points out that the group has won 25 5G commercial contracts worldwide and has developed 5G cooperation with more than 60 operators worldwide. In the future, it will continue to increase investment in 5G research and development, pay close attention to the self-research work of core devices and chips, and will launch the third generation of 7nm5G chips in the second half of 2019, leading the GaN high power amplifier performance industry.
When performance growth is determined, orders will naturally be large. On September 9, a reporter from the Securities Times E Company learned exclusively from ZTE that at present, ZTE 5G base stations have delivered more than 50,000 products worldwide. According to the network deployment plan of the three major operators, ZTE will deliver more than 100,000 base stations by the end of this year. In addition, in terms of 5G terminals, the current supply of ZTEs cooperative products with domestic e-commerce and operators is in short supply.
Market participants pointed out that ZTEs strong rise and stop shows that the fund continues to tap the bottom stagflation varieties. The fund recognizes the main line of big science and technology to look for opportunities back and forth. The intention of high-low switching is very obvious, and the order of speculation in the middle and lower reaches of the industrial chain is also clear.
Nomura published a research report pointing out that ZTEs medium-term performance reflects the companys business continued recovery, and 5G demand will bring business opportunities for the group, maintain the buy rating, H share target price is still HK$28.
Source: Responsible Editor of Securities Times: Yang Bin_NF4368