not vested
ZTE Settles With US Over Iran Sales: Worst Is Over? By Shuli Ren
Chinese telecom equipment maker ZTE (763.Hong Kong) soared 6% on Wednesday after ending a five-year long investigation by the U.S. government.
ZTE agreed to pay $892 million in fines and plead guilty to violating U.S. sanctions on Iran.
Without the legal overhang, ZTE’s financials look good.
In 2016, its net profit would have risen 19% to 3.83 billion yuan. In addition, ZTE said it expected to grow its net profit by between 21% and 32% in the March quarter.
Morgan Stanley, however, continues to have a Neutral rating on ZTE, saying that ZTE is not back in the up-cycle yet. China’s demand for telecom equipment is going to be muted until the country adopts 5G. Analyst Yunchen Tsai wrote:
Looking into 2017, operators should continue to reduce capex for both wireless and optics in China. ZTE is still losing share in handsets in China and overseas.
The share price could be volatile in the near term, in our view, as we see the latest announcement as a mixed bag as market looks forward, but fundamentals probably will not pick up until the 5G cycle comes.
ZTE’s shares have fallen 11.3% over the last year.
Source: Barron's Asia
http://blogs.barrons.com/asiastocks/201 ... t-is-over/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"