UBS 将中兴通讯 H股目标价从22.80港币上调到 34港币
ZTE H Shares Upgraded to Neutral at UBS; PT HK$34
2018-01-29 22:11:14 – Bloomberg
By Bloomberg Automation
(Bloomberg) — UBS upgraded the recommendation on ZTE Corp. H Shares to neutral from sell.
UBS raised the target price to HK$34 from HK$22.80, implying a 21 percent increase from the last regular trade. The target is 5.2 percent above the consensus average of HK$32.32.
We also upgrade ZTE-H (here) and ZTE-A (here) to Neutral from Sell as we expect ZTE to: 1) benefit from upcoming 5G spending in China; 2) expand into overseas emerging markets; and 3) improve its operational efficiency. We believe 5G development is accelerating in China and we expect construction of 5G networks to start from 2019. However, we expect the 5G buildout to progress more slowly than 4G.
The government is positioning 5G development as a national strategy in a bid to: 1) encourage new growth drivers for China’s economy, such as mobile internet and internet of things (IoT); and 2) boost the overall value chain in chipsets, components, equipment and materials. Our expected 5G milestones include: 1) standalone (SA) 5G technology to be finalised in mid-2018; 2) the three telcos to conduct 5G trials in 2018-H119; 3) Ministry of Industry and Information (MII) to allocate spectrum among the three companies by end-2018; 4) MII to issue 5G licenses in H119; and 5) commercial launch of 5G in 2020.