HK Stock Market Move | ZTE Corporation (00763) rose by over 5% and will release its annual performance this week. Institutions are optimistic about the company benefiting from the high demand for AI computing power.

ZTE Corporation (00763) surged more than 5%, reaching a 5.33% increase at the time of writing, reaching 34.6 Hong Kong dollars with a transaction amount of 26.42 billion Hong Kong dollars. On the news front, ZTE Corporation will release its annual performance results for the year ending December 31, 2024 on February 28 (this Friday). Goldman Sachs previously predicted that ZTE Corporation's revenue for the fourth quarter of 2024 would be 35 billion yuan, flat year-on-year, and a 27% increase quarter-on-quarter. The bank pointed out that enterprise ICT products and consumer electronics products continue to be the main drivers of ZTE's growth, with these two types of products expected to account for 17% and 25% of ZTE Corporation's revenue in the fourth quarter. The bank predicts that ZTE Corporation's fourth-quarter net profit in 2024 will increase by 52% year-on-year, reaching 2.3 billion yuan, and is optimistic about the company's growth potential in the enterprise and consumer electronics sectors. EB Securities pointed out that ZTE Corporation has a strong market outlook as one of the top four global equipment vendors, amid the high demand for AI computing power in the Digital China initiative. Northeast also noted that ZTE Corporation is a leading global comprehensive ICT company, optimistic about the company's business layout of "connectivity + computing power" and expects rapid growth in AI terminal, training and inference integrated machines, self-developed chips, etc. under the AI wave, driving stable performance improvement for the company itself.