| ZTE Communications Corporation is a very unique company in the domestic A-share market. It started from a small state-run businesses, without any help of monopoly resources it grows into a high-tech enterprise with 44 billion yuan of operating income, covering almost all the telecommunications equipment manufacturing and planning to enlist as one of the top five manufacturers of telecommunications equipment, standing side by side with other international telecommunications giants like Nokia, Siemens, Ericsson, Motorola and etc. This article aims to focus on the analysis of what kind of investment value ZTE has in the domestic A-share market.This paper first introduced an overview of ZTE Corporation and its development process, followed by the comparison of the main valuation theories and models. The macroeconomic situation and telecommunications equipment manufacturing industry are analyzed; the industry development acknowledgement is put forward. There is an analysis of the success of ZTE's strategy transition in the fifth chapter, then an analysis of ZTE's overall business conditions including growth, profitability, solvency, operational capabilities by means of using related financial analysis is put forward. After a comparison with companies of the same industry it shows ZTE's outstanding financial performance indicators and predicts ZTE's future earnings. Finally it carried out a valuation analysis and got investment conclusions, based on the above analysis and by using relative and absolute valuation methods. |
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