The decline in performance exceeded expectations. ZTE was accused of layoffs in disguise.

The decline in performance exceeded expectations. ZTE was accused of layoffs in disguise.

The decline in performance exceeded expectations.

ZTE 13 issued a performance warning in the evening, and the company estimated that the net profit attributable to shareholders of listed companies was1540,000-308 million yuan, down 60%-80% year-on-year. Such a sharp decline in performance clearly exceeded previous industry expectations. The company said that the sharp decline in performance was mainly due to the decline in investment income, exchange losses, the postponement of bidding for telecom equipment contracts and the decline in overall gross profit margin.

Ma Jun, chief analyst of TMT, pointed out to the Securities Daily reporter that the decline in investment income and exchange loss were the direct reasons for the sharp decline in the company's net profit in the first half of 20 12.

However, investors have long expected the decline in investment income. After all, they don't expect ZTE to make high profits by selling national science and technology stocks as it did last year. The exchange loss and the postponement of bidding for telecom equipment contracts are only temporary factors, and the decline in overall gross profit margin is the fundamental pain of ZTE.

According to the research report of Shifu Finance, the decline in the overall gross profit margin of the company may reflect the intensification of industry competition and the gradual weakening of the company's bargaining power, which may also be unfavorable to its long-term development.

Standard Chartered Bank's securities research report also pointed out that as one of the largest telecom equipment suppliers in China, ZTE's performance warning reflected the poor prospects of the industry. The bank said that from the recent survey, telecom equipment suppliers, whether local or overseas telecom operators, are facing increasing bargaining pressure.

ZTE is not the only one facing difficulties. Huawei 20 12 unexpectedly suffered huge losses in the first quarter. The loss and decline of the two major equipment giants undoubtedly reflect the prosperity of the industry. Compared with sighing again and again in the face of difficulties, how to tide over the difficulties is probably the most concerned issue for companies and investors at present.

According to the investigation results of Huachuang Securities, although Huawei unexpectedly incurred huge losses in the first quarter of 20 12, it took forceful and timely actions. Would you rather give up market share and ensure the profitability of the first product? With the' price stop loss' strategy, Huawei's overall net profit in the first half of the year is also very likely to quickly stabilize to a good level of 654.38 billion US dollars.

Ma Jun believes that ZTE's layout in the global market has been relatively reasonable, and its market share in various product fields has reached a certain level? Moat? Advantages, if reasonably controlled in business, continue to take? Follow? Strategy, larger scale? Moat? Advantages, coupled with continuous efforts to suppress sales expenses, and the improvement of the exchange environment brought about by the stabilization of the euro and RMB in the second half of the year, it is still worth looking forward to achieving good results throughout the year.

Because the share price of the company's secondary market has already reflected the previous pessimistic expectations, although it is still in the short term? Suffering? However, Ma Jun is still optimistic about the company in the medium and long term.

Of course, this beautiful expectation can only be realized if the three risk factors are far away. First, the price war is fierce again, and it is difficult to recover the gross profit. Secondly, uncontrollable exchange rate risks still exist. Third, occasional surveys conducted by the European Union, the United States and other western countries have led to a decline in overseas income.

Shifu Finance is more cautious, saying that although China Telecom's capital expenditure is expected to increase in the second half of the year, the increase in sales may offset some negative effects of the decline in gross profit margin, and investors should not be too optimistic about the company's prospects in the second half of the year. Coupled with the weak trend of ZTE's share price this year (it has fallen by nearly 60% so far), even if it is seriously oversold, it is expected that it will be difficult to get out of the gloom of weak stocks in the short term, and investors are advised to be cautious.

Disguised layoffs?

In addition to performance concerns, two rumors that have recently plagued ZTE have also been officially stated.

Earlier, according to media reports, the US Federal Bureau of Investigation has launched an investigation into China ZTE Corporation's alleged sale of computer equipment banned by the United States to Iran. In response, a spokesman for the Ministry of Commerce of China said? We still need to know more about the incident, but we believe that the relevant exchanges do not violate the UN Security Council resolutions and call on the United States to handle it objectively? . ZTE said that it will continue to cooperate with the investigation of HPSCI by the US Special Intelligence Committee in a transparent, sincere and cooperative manner. Shifu Finance predicts that the incident will remain deadlocked in the short term, and investors should pay attention to the development of the situation to see if it will evolve into a more political event.

In addition, ZTE was also arrested? Lay off 10 thousand people? Public opinion storm. Some media quoted ZTE's internal employees as saying that since the Spring Festival this year, several batches of ZTE's overseas employees have been recalled, and they need to find their own way after returning home. If they can't find it, they will become idle people.

Under the current situation of performance warning in the first half of the year, layoffs seem to be more like the real situation.

Against outside rumors? ZTE plans to lay off employees at the end of the year 1 10,000 people? On the afternoon of 17, ZTE issued two official Weibo statements. There is no layoff plan this year, and thousands of college graduates will still join the job this year to enrich the R&D jobs? .

Another Weibo said that ZTE has been committed to promoting the localization of overseas human resources and has trained a group of experienced local employees for more than ten years. In order to deepen the internationalization strategy, ZTE will promote the localization of overseas human resources in a planned way this year. On the one hand, experienced overseas local employees will gradually take up management positions and become the main force. On the other hand, it is normal for the company to transfer internal personnel according to business arrangements.

This official response is exactly the same as what ZTE said when it laid off employees in 2005. In 2005, ZTE also denied the idea of mass layoffs and announced that it would recruit about 2,200 fresh college graduates this year.

Recruiting new people seems to be strong evidence that ZTE denies layoffs, but the real logic is that there will still be thousands of college graduates joining the company. Doesn't mean that no one is forced to leave.

Although ZTE denied the layoff plan, some insiders told this reporter that the layoff is disguised, and employees returning from overseas will be assessed in the first half of the new position. ;