CICC has revised down its target price for ZTE's H-shares by 19% to HK$31.5, while maintaining an "Outperform Industry" rating. The company's 2025 financial results fell short of expectations, with revenue reaching RMB 133.895 billion, up 10.38% year-on-year, but net profit attributable to shareholders declining 33.32% to RMB 5.618 billion. After excluding non-recurring items, net profit stood at RMB 3.37 billion. In the fourth quarter alone, revenue rose 6.79% to RMB 33.376 billion, while net profit attributable to shareholders dropped 42.95% to RMB 296 million. The adjustment reflects concerns over subdued capital expenditure by Chinese telecom operators and structural business changes that have compressed overall gross margins. CICC has consequently lowered its 2026 profit forecast for the group by 25.7% to RMB 6.704 billion and introduced a 2027 profit estimate of RMB 8.161 billion.