# Zte (000063.SHE)

Canonical: https://gigainvestors.com/s/000063.SHE

Analysis as of: 2026-10-16T07:34:47.905Z. Financial observations: FY1996–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 26.81 per share; close as of 2026-10-15.

Estimated value: low CNY 28.43 per share, central CNY 30.98 per share, high CNY 34.39 per share. Buy at or below the central value CNY 30.98 per share. Valuation as of 2026-10-16T07:34:47.905Z; scenarios are not confidence intervals.

Expected annual return: 11.8% at the stated quote. About 11.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 2

- Operating margin variation: 0.58×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.01×

- FY2017: 0.06×

- FY2018: -0.01×

- FY2019: 0.08×

- FY2020: 0.05×

- FY2021: 0.08×

- FY2022: 0.07×

- FY2023: 0.08×

- FY2024: 0.08×

- FY2025: 0.02×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 5.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 14.3%

- ROIC, second-lowest year: 3.3%

- Typical minus recent gross margin: 5.7 pp

- Typical gross margin (annual median): 33.2%

- Recent gross margin (lower of latest and 3-year median): 27.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.5%

- ROIC including acquisitions, ten-year median: 5.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 4.1%

- FY2017: 23.4%

- FY2018: -1.6%

- FY2019: 15.9%

- FY2020: 12.7%

- FY2021: 18.5%

- FY2022: 16.4%

- FY2023: 20.5%

- FY2024: 12.4%

- FY2025: 3.3%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.97×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 37B

- Net income, five-year total: CNY 38B

- Return on incremental invested capital: 5.0%

- Working capital / revenue, annual change: 0.9 pp

- Working capital / revenue, change between three-year averages: 6.1 pp

- Working capital / revenue, final three-year average: 34.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.98×

- FY2022: 0.98×

- FY2023: 1.04×

- FY2024: 0.77×

- FY2025: 1.12×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 4.1% vs 12.4%

- Per-share earnings: 0.88 to 1.74 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.2%

- Ordinary dilution, 5-year annual growth: 6.7%

- Market cap gain: CNY 169B

- Cumulative retained earnings: CNY 32B

- Diluted shares, 10-year annual growth: 4.2%

- Diluted shares, 5-year annual growth: 6.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.9%

- Per-share value change: CNY 0.86

- Per-share value, starting three-year median: CNY 0.88

- Per-share value, ending three-year median: CNY 1.74

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 3.9%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 8.3B

- Cumulative net income, 10 years: CNY 45B

- ROIC, first three-year median: 4.1%

- ROIC, last three-year median: 12.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY -0.44

- FY2017: CNY 1.20

- FY2018: CNY -1.63

- FY2019: CNY 1.30

- FY2020: CNY 0.95

- FY2021: CNY 1.46

- FY2022: CNY 1.71

- FY2023: CNY 1.95

- FY2024: CNY 1.74

- FY2025: CNY 0.90

### accounting: pass

- Sloan accruals: -0.1%

- Receivables to sales index (DSRI): 0.91×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.05×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.11×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.0%

- FY2017: -1.5%

- FY2018: 2.0%

- FY2019: -1.4%

- FY2020: -4.0%

- FY2021: -5.3%

- FY2022: 0.3%

- FY2023: -4.0%

- FY2024: -1.5%

- FY2025: -0.1%

## Holders

## Price story

Down 41% since Sep 2025 · sales +10%

Story as of 2026-10-16T10:00:02.536Z; price observation 2026-10-15.

Price needs cash profits to shrink 1.9% a year for ten years

### Sales · FY2024–2025

sales +10%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 101B 

- FY2017: CNY 109B 

- FY2018: CNY 86B 

- FY2019: CNY 91B 

- FY2020: CNY 101B 

- FY2021: CNY 115B 

- FY2022: CNY 123B 

- FY2023: CNY 124B 

- FY2024: CNY 121B 

- FY2025: CNY 133B 

### Gross margin · FY2025

gross margin 27.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 30.1% 

- FY2017: 31.0% 

- FY2018: 31.9% 

- FY2019: 35.8% 

- FY2020: 31.5% 

- FY2021: 34.5% 

- FY2022: 36.5% 

- FY2023: 40.8% 

- FY2024: 37.4% 

- FY2025: 27.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in communication equipment; annual sales are CNY 133.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.905Z); FY2025: revenue 133414233000; grossProfit 36724626000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000063.SHE: ZTE Corporation provides integrated information and communication technology solutions in the People's Republic of China, rest of Asia, Africa, Europe, America, and Oceania. It operates through three segments: Carriers' Networks, Consumer Business, and Government and Corporate Business. The Carriers' Networks segment provides wireless and wireline access, bearer systems, core networks, server and storage, and other technologies and product solutions. The Consumer Business segment focuses on the development, production, and sale of home information terminals, smart phones, mobile internet terminals, and fusion terminals, as well as provides related software application and value added services. The Government and Corporate Business segment offers informatization solutions for the government and corporations through the application of products, including communications networks, IoT, big data, and cloud computing. The company was founded in 1985 and is headquartered in Shenzhen, the People's Republic of China.

### Why customers stay

Margins ranged from 27.5% to 40.8% during 2023–25; it earns 14.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.905Z); FY2023: grossProfit / revenue = 40.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.905Z); FY2024: grossProfit / revenue = 37.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.905Z); FY2025: grossProfit / revenue = 27.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.905Z); 10-year return on capital observations [[2016,0.04148475465556518],[2017,0.2337802711368571],[2018,-0.01649784742637304],[2019,0.15880499541187995],[2020,0.12655221320506907],[2021,0.1851395055428569],[2022,0.16429672662658304],[2023,0.2045477257967081],[2024,0.1240038897148369],[2025,0.03328853926380969]]; median 0.1426786043084745. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.905Z); FY2017: growth capex 701753196.3283463; upkeep 5282251803.671654; owner earnings 1147171196.3283463. Growth capex / owner earnings = 0.6117249095639677.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.905Z); FY2019: growth capex 538259729.9300022; upkeep 6012360270.069998; owner earnings 1015249729.9300022. Growth capex / owner earnings = 0.5301747088050083.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.905Z); FY2020: growth capex 1221490925.975586; upkeep 5250161074.024414; owner earnings 743033925.9755859. Growth capex / owner earnings = 1.6439234916114998.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.905Z); FY2021: growth capex 1503822000; upkeep 4182547000; owner earnings 6706544400. Growth capex / owner earnings = 0.22423202029349124.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.905Z); FY2022: growth capex 893456000; upkeep 4058460000; owner earnings 7922565200. Growth capex / owner earnings = 0.1127735749022299.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.905Z); FY2023: growth capex 0; upkeep 4004683000; owner earnings 9697999200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.905Z); FY2024: growth capex 0; upkeep 4014730000; owner earnings 6456026399. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.905Z); FY2025: growth capex 0; upkeep 3892988000; owner earnings 6294458200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.905Z); Dividend observations: [[2016,2776936000],[2017,1624464000],[2018,1825069000],[2019,2159672000],[2020,922687000],[2021,927542000],[2022,1420213000],[2023,1895850000],[2024,5273731000],[2025,2951441000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 26.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000063.SHE SharesStats.PercentInsiders = 26.069 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 1.9% yearly over ten years; actual growth was 1.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:47.905Z); Ten-year compound average after fade. Initial solved rate -0.03907774138785092. Price 26.81; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.8799183558882524 → FY2025 1.0095645023055337. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 15.30 per share

- 2016-11: CNY 16.84 per share

- 2016-12: CNY 15.95 per share

- 2017-01: CNY 15.15 per share

- 2017-02: CNY 15.80 per share

- 2017-03: CNY 16.96 per share

- 2017-04: CNY 17.76 per share

- 2017-05: CNY 19.53 per share

- 2017-06: CNY 23.74 per share

- 2017-07: CNY 22.95 per share

- 2017-08: CNY 23.86 per share

- 2017-09: CNY 28.30 per share

- 2017-10: CNY 32.29 per share

- 2017-11: CNY 33.08 per share

- 2017-12: CNY 36.36 per share

- 2018-01: CNY 31.12 per share

- 2018-02: CNY 32.24 per share

- 2018-03: CNY 30.15 per share

- 2018-04: CNY 31.31 per share

- 2018-05: CNY 31.31 per share

- 2018-06: CNY 13.03 per share

- 2018-07: CNY 14.60 per share

- 2018-08: CNY 19.09 per share

- 2018-09: CNY 18.30 per share

- 2018-10: CNY 16.93 per share

- 2018-11: CNY 19.87 per share

- 2018-12: CNY 19.59 per share

- 2019-01: CNY 20.11 per share

- 2019-02: CNY 29.80 per share

- 2019-03: CNY 29.20 per share

- 2019-04: CNY 32.15 per share

- 2019-05: CNY 28.76 per share

- 2019-06: CNY 32.53 per share

- 2019-07: CNY 32.92 per share

- 2019-08: CNY 28.81 per share

- 2019-09: CNY 32.05 per share

- 2019-10: CNY 33.40 per share

- 2019-11: CNY 30.71 per share

- 2019-12: CNY 35.39 per share

- 2020-01: CNY 39.17 per share

- 2020-02: CNY 50.00 per share

- 2020-03: CNY 42.80 per share

- 2020-04: CNY 41.09 per share

- 2020-05: CNY 35.95 per share

- 2020-06: CNY 40.13 per share

- 2020-07: CNY 39.17 per share

- 2020-08: CNY 39.02 per share

- 2020-09: CNY 33.09 per share

- 2020-10: CNY 32.28 per share

- 2020-11: CNY 34.73 per share

- 2020-12: CNY 33.65 per share

- 2021-01: CNY 32.19 per share

- 2021-02: CNY 31.76 per share

- 2021-03: CNY 29.32 per share

- 2021-04: CNY 28.95 per share

- 2021-05: CNY 31.44 per share

- 2021-06: CNY 33.23 per share

- 2021-07: CNY 38.80 per share

- 2021-08: CNY 33.20 per share

- 2021-09: CNY 33.13 per share

- 2021-10: CNY 32.62 per share

- 2021-11: CNY 30.68 per share

- 2021-12: CNY 33.50 per share

- 2022-01: CNY 30.14 per share

- 2022-02: CNY 29.06 per share

- 2022-03: CNY 23.90 per share

- 2022-04: CNY 24.13 per share

- 2022-05: CNY 24.33 per share

- 2022-06: CNY 25.53 per share

- 2022-07: CNY 24.42 per share

- 2022-08: CNY 24.50 per share

- 2022-09: CNY 21.40 per share

- 2022-10: CNY 22.17 per share

- 2022-11: CNY 24.50 per share

- 2022-12: CNY 25.86 per share

- 2023-01: CNY 26.64 per share

- 2023-02: CNY 32.24 per share

- 2023-03: CNY 32.56 per share

- 2023-04: CNY 35.62 per share

- 2023-05: CNY 35.18 per share

- 2023-06: CNY 45.54 per share

- 2023-07: CNY 39.15 per share

- 2023-08: CNY 35.45 per share

- 2023-09: CNY 32.68 per share

- 2023-10: CNY 26.15 per share

- 2023-11: CNY 25.63 per share

- 2023-12: CNY 26.48 per share

- 2024-01: CNY 21.96 per share

- 2024-02: CNY 29.86 per share

- 2024-03: CNY 27.99 per share

- 2024-04: CNY 28.67 per share

- 2024-05: CNY 26.96 per share

- 2024-06: CNY 27.97 per share

- 2024-07: CNY 27.42 per share

- 2024-08: CNY 24.83 per share

- 2024-09: CNY 31.15 per share

- 2024-10: CNY 30.28 per share

- 2024-11: CNY 31.16 per share

- 2024-12: CNY 40.40 per share

- 2025-01: CNY 39.98 per share

- 2025-02: CNY 38.66 per share

- 2025-03: CNY 34.22 per share

- 2025-04: CNY 31.94 per share

- 2025-05: CNY 31.09 per share

- 2025-06: CNY 32.49 per share

- 2025-07: CNY 34.29 per share

- 2025-08: CNY 45.44 per share

- 2025-09: CNY 45.64 per share

- 2025-10: CNY 43.46 per share

- 2025-11: CNY 42.09 per share

- 2025-12: CNY 37.84 per share

- 2026-01: CNY 38.49 per share

- 2026-02: CNY 38.65 per share

- 2026-03: CNY 32.44 per share

- 2026-04: CNY 36.70 per share

- 2026-05: CNY 36.72 per share

- 2026-06: CNY 36.19 per share

- 2026-07: CNY 33.81 per share

- 2026-08: CNY 34.18 per share

- 2026-09: CNY 30.58 per share

- 2026-10: CNY 28.02 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 8.08 per share, central CNY 8.33 per share, high CNY 8.48 per share

- FY2017: low CNY 10.48 per share, central CNY 10.89 per share, high CNY 11.43 per share

- FY2018: low CNY 8.41 per share, central CNY 8.75 per share, high CNY 9.20 per share

- FY2019: low CNY 10.08 per share, central CNY 10.42 per share, high CNY 10.88 per share

- FY2020: low CNY 9.51 per share, central CNY 9.76 per share, high CNY 10.09 per share

- FY2021: low CNY 13.58 per share, central CNY 14.09 per share, high CNY 14.65 per share

- FY2022: low CNY 14.85 per share, central CNY 15.55 per share, high CNY 16.23 per share

- FY2023: low CNY 34.15 per share, central CNY 38.76 per share, high CNY 42.58 per share

- FY2024: low CNY 28.62 per share, central CNY 32.43 per share, high CNY 35.91 per share

- FY2025: low CNY 21.47 per share, central CNY 23.36 per share, high CNY 25.87 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:31.378Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations