---
title: "CMBI Cuts ZTE  TP to HKD35.5, Margin Pressure Expected to Persist"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/296848513.md"
description: "CMBI lowered ZTE's H-share target price to HKD35.5 from HKD38.6, citing expected margin pressure due to revenue mix shifts and weak domestic telecom spending. Despite maintaining a Buy rating and optimism on AI server growth, the broker adjusted its valuation base to FY27 with a 22x P/E multiple. ZTE reported H1 revenue up 9.1% YoY but net profit down 45.6% YoY."
datetime: "2026-08-25T02:10:11.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/296848513.md)
  - [en](https://longbridge.com/en/news/296848513.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/296848513.md)
generator: "portal-rs"
---

# CMBI Cuts ZTE  TP to HKD35.5, Margin Pressure Expected to Persist

CMBI issued a report saying that ZTE (00763.HK) 0.000 (0.000%) Short selling $43.97M; Ratio 16.449% 's revenue for the first half of the year rose 9.1% YoY to RMB78 billion, while net profit fell 45.6% YoY to RMB2.75 billion. In 2Q26, revenue rose 11.5% YoY and 23% QoQ to RMB43 billion, above market expectations; net profit fell 44.6% YoY but rose 10.1% QoQ to RMB1.44 billion.

The broker said it remains optimistic about the company's revenue growth, driven by continued expansion in AI server and data center sales, supported by strong overseas demand. However, the shift in revenue mix and weak domestic telecom spending are expected to keep margins under pressure.

The broker maintained its Buy rating on ZTE (00763.HK) 0.000 (0.000%) Short selling $43.97M; Ratio 16.449% , as the rapidly expanding AI infrastructure business should support revenue growth. It rolled forward the valuation base to 2027 and applied a target FY27 P/E of 22x (previously FY26 forecast P/E of 25x), broadly in line with peers. The H-share target price was lowered from HKD38.6 to HKD35.5. (ha/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-24 16:25.)

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**