ZTE (000063) Announcement of Additional Announcement: Zeng Settling to Land

ZTE (000063) Announcement of 天津夜网 Additional Announcement: Zeng Settling to Land

Core budget event: On January 16, 2020, the company issued an announcement to determine the issue price of the non-public offering of A shares and the purchase and subscription agreement.

The number of shares issued this time is 3.

8.1 billion shares, accounting for about 9 of the total share capital at the announcement date.

01%, accounting for about 8 of the company’s total share capital after the completion of the issuance.

27%; issue price is 30.

21 yuan / share, raising a total of 115 funds.

1.3 billion yuan, net of 114 after issuing expenses.

$ 5.9 billion will be used for 5G network access-oriented technology research and product development projects and supplementary working capital.

The A shares subscribed through this issuance shall not be transferred 杭州桑拿网 within 12 months from the date on which the newly added shares are listed.

  The first year of 5G commercialization has arrived, and the industry has officially entered the harvest period.

2020 is the first year of 5G commercialization, and the global 5G network has officially entered the stage of scale construction.

We predict that in 20 years, the number of new global base stations will reach 1.02 and 1.95 million stations, and the number of new 5G base stations in China will reach 680,000 and 1.3 million stations, respectively.

  Since the beginning of 2020, operators have successively started 5G core networks, carrying and collecting transmission projects, and the upstream and downstream of the industrial chain have officially entered the period of performance harvest.

  Ding Zeng landing escort company new growth.

In the first three quarters of 2019, the company’s main business income was 642.

41 trillion US dollars, an annual increase of 9.

32%, net profit attributable to mother 41.

2.8 billion, an annual increase of 156.

86%, operations continued to recover steadily, and 5G order dividends have not yet been significantly released.

The company has fully participated in the domestic 5G network scale deployment, and the global market has continued to make breakthroughs. Until the end of September 2019, it has obtained 35 5G commercial contracts around the world.The future growth space is worth looking forward to.

  Investment suggestion: We predict that the company’s net profit attributable to its mother from 2019 to 2021 will be 49.



2.8 billion yuan, EPS is 1.



88 yuan, corresponding to PE is 34/27/21 times, considering the additional issuance of diluted EPS on the shares are 1 respectively.



72 yuan.

In the new era of 5G, the company is expected to replicate the estimated upgrade path of 4G history and maintain the company’s “Buy” rating.

  Risk warning: 5G network construction progress is less than expected; operator capital expenditure is less than expected; the company’s 5G technology product research and development progress is less than expected; the company’s profit level is less than expected; Sino-US trade friction is escalating.