ZTE (00763) fell more than 5% intraday, trading at HK$39.62 by press time, down 4.71%, with a turnover of HK$1.701 billion. The company is set to hold a board meeting today to approve and release its third-quarter results for the nine months ended September 30, 2025.

Huatai Securities noted in a recent report that ZTE, a long-standing leader in China's communications equipment sector, is actively transitioning from "connectivity" to "connectivity + computing power." The brokerage remains bullish on the company for two key reasons: its stable core business and overseas expansion. Despite declining capital expenditures from domestic telecom operators in recent years, ZTE has maintained high market share in centralized procurement and strong profitability, while actively expanding its overseas carrier business to offset domestic demand weakness.

Additionally, ZTE's early investments in computing power may soon yield results. The company has comprehensively deployed AI computing products covering computing, storage, and networking, with full-stack in-house R&D capabilities from chips to complete systems. Compared to domestic peers in the computing power supply chain, ZTE stands out for its uniqueness. As its self-developed chips are progressively integrated into ICT equipment, the profitability of its enterprise business is expected to improve significantly.