Yesterday (October 15), ZTE released the first three seasons performance notice: The net profit is expected to fall by 254.42% ~ 263.78% year-on-year, and the price is expected to be 1650 million to 1.75 billion yuan. Affected by this news, ZTE A shares of ZTE, the H share doubled.
By combing the financial data of ZTE, the reporter found that in 2009, in 2010, in the first half of 2011 and 2012, the net cash flow generated by the company's operating activities was 372.9 billion yuan, 942 million yuan, -1812 million yuan and 3.64 billion yuan, showing a clear downward trend. At the same time, the asset-liability rate has a rise.
With low-cost replacement, it has always been a means taken in some enterprise expansion. In recent years, ZTE has also embarked on this road. A senior person who did not want to be famous, said that in the market environment of the lax, ZTE is a wrong strategy, buried hidden dangers for great loss. At the same time, the company's management of the project process is not rigorous, and many projects do not make a deficiency.
Performance is expected to fall
For the previous three-quarter, the performance forecast, ZTE interprets that the company's 7-September business income declines over the same period last year, mainly part of the international project engineering progress delay, and the integrated impact of domestic operators collection model on company income confirmation It is caused; the overall gross profit margin of the same period decreased by the same period last year, mainly in Europe, Asia and more domestic low-rise rate contracts confirmed performance during this reporting period. ZTE announced that the management apologized for the current business results and decided to collective salary.
Affected by this news, yesterday, ZTE A-shares decreased, 9.45 yuan closed price was founded in nearly 4 years, and the H shares fell as high as 15.79%.
"The degree of performance has exceeded the limits of many professional institutions, otherwise they will not panic in the landing board shipments." A brokerage analyst analyzer for long-term concern for ZTE.
Telecom industry analysts palained reporters that the global economy is not booming, and the days of communication equipment industries are not good. In addition, large and small companies are grabbing the intelligent terminal market, which is quite unfavorable to ZTE communications.
Another industry believes that ZTE has problems with the assessment of the project in overseas expansion, and many projects have discovered losses in the implementation process, which is one of the reasons. In addition, "also related to the company concentrated in this quarterly contract related to a group of contracts."
A report released by Miyin Merlin also believes that the main reason for the fell in ZTE's profit is the latency of operators, and ZTE has adopted more conservative income confirmation policies (a one-time impact), plus postponed certain international projects. .
Analysis: Over the low price strategy?
However, from a deeper level, ZTE is currently in the current dilemma or market strategy to implement low-cost competition in recent years.
Taking the Indian market as an example, the current Indian state-owned operator BSNL announced the national 2G network expansion plan. ZTE has won with an overwhelming price advantage. It is 840 million US dollars, and the highest price of the highest price of the $ 25 billion finals. One of them, far less than Huawei reported $ 1.3 billion.
According to the Indian Economic Times, BSNL overall expansion programs may fail because it is currently not determined whether ZTE communications will continue to provide GSM equipment in low prices of commitment.
Cuo Cui Liangjun, the CEO of ZTE, India, said, "We are still conducting technical levels and seeking more time from the BSNL side to decide whether to accept equipment orders in the eastern region, because ZTE is responsible for public accounts, the directors are currently being China headquarters and high-rise Managers discuss whether it can meet. "
A senior person who did not want to be famous, said to reporters that ZTE has implemented a relatively radical market strategy in recent years. Last year, many contracts have been raised at a low price, this or strategic mistakes, because in a market environment in the lax, Companies should be steadily advanced, accumulated energy. At the same time, ZTE has expanded its overseas expansion, and the profit margin of these projects is very low. In addition, ZTE's internal management also has problems. Because the management of the project process is not rigorous, the budget for many project spend is too simple, and it will not only make money, but will lose money.
Perhaps these problems have been discovered that ZTE has released the intention of the conspirable change, and will abolish long-term losses and cannot turn over in the short term, while the number of employees will be controlled and structural adjustments.
Subsequent financing or shock
The reporter also found that from the key financial data such as the business cash flow of ZTE and the asset-liability, its funding is constantly increasing.
According to financial report, in 2009, in 2010, in the first half of 2011, in the first half of 2012, the net cash flow in ZTE's business activities decreased year by year, with 372.9 billion yuan, 942 million yuan, -1812 million yuan and -364 million yuan. That is to say, the net cash flow generated by operating activities in the first half of this year is nearly 200% lower than in 2009.
At the same time, ZTE's asset-liability rate is also rising. In 2009, in 2010, the balance rate in the first half of 2011 and 2012 was 73.74%, 70.34%, 75.05% and 75.07%, respectively.
The above industry, pointed out, "In the past, ZTE has fallen due to poor interest in the middle report, and the company said that the company said that the results will be improved in the second half of the year; but the result of investors is a worse transcript. The practice will undoubtedly lose the trust of investors. Why can't I say it early? "
"At present, the capital market has strongly reacted the decline in ZTE's performance. In the future, the company will probably encounter financing difficulties, thereby further increasing the pressure chain pressure." The industry said. Technology area
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