ZTE Corporation Class A (000063.SZ) Rises on 5G Expansion and EU Privacy Win

Shenzhen, China – 27 November 2025 – ZTE Corporation’s Class A shares on the Shenzhen Stock Exchange climbed in Thursday’s session as investors reacted to a cluster of fresh company news: new 5G and rural-connectivity deals, a European data‑privacy certification, and a newly disclosed security vulnerability – all arriving against the backdrop of robust revenue growth but pressured profitability.

ZTE Class A stock price today: 000063.SZ at a glance

As of mid‑afternoon trading in Shenzhen on 27 November 2025, ZTE Corporation’s Class A shares (ticker 000063, Shenzhen Stock Exchange) were changing hands at around CNY 42.2, up just over 3% from the previous close of CNY 40.97. ^[1]

Key intraday and valuation metrics:

Day performance: roughly +3.1% so far today, with the stock swinging from just below CNY 40 to above CNY 43 at the high. ^[2]
Turnover: trading volume of about 257 million shares, more than double the recent average of about 119 million, signalling heightened interest from traders and institutions. ^[3]
Valuation:
- Market capitalization around CNY 186 billion
- Trailing P/E ~33.6, forward P/E ~24.9
- Dividend per share ~CNY 0.62, for a yield near 1.6% at today’s price. ^[4]
Trading ranges & risk profile:
- 52‑week range: roughly CNY 28.7 – 55.9, placing today’s price in the middle of its 12‑month band. ^[5]
- Reported beta around 0.54, implying lower volatility than the broader Chinese equity market, and a mid‑range RSI near 52, suggesting neither strongly overbought nor oversold conditions. ^[6]

For investors focused specifically on the Class A shares, these numbers frame ZTE today as a mid‑cap tech hardware and infrastructure name priced at a growth‑stock multiple, but with moderate income via dividends.

Today’s big headlines for ZTE (27 November 2025)

Several ZTE‑related announcements and reports dated 27 November 2025 help explain why the stock is back in focus.

1. Showcasing 5G‑Advanced and AI at MWC Doha 2025

ZTE confirmed that it is exhibiting at MWC Doha 2025 in Qatar, highlighting its ambitions in 5G‑Advanced (5G‑A), AI‑native infrastructure, and optical networks. ^[7]

Key points from the company’s Doha showcase:

The booth centers on 5G‑Advanced connectivity, compact and energy‑efficient AI computing platforms, and all‑optical transport and access solutions designed for high‑capacity, low‑latency networks.
ZTE is positioning these offerings as enablers of Qatar’s Digital Agenda 2030 and the wider region’s push toward “intelligent economy” models.
Executives stressed inclusive digital growth and cybersecurity, signalling that security and sustainability are now core parts of ZTE’s sales pitch to carriers and governments.

From a stock‑market angle, this matters because it reinforces ZTE’s narrative as:

A long‑term supplier for national‑scale 5G‑A rollouts, and
A player trying to move up the value chain into AI‑centric infrastructure and computing, not just base stations and routers.

Investors betting on 5G‑A and AI infrastructure as structural themes are likely to view the Doha presence as a modest positive signal, especially for international revenue growth.

2. Ethio Telecom partnership: deepening rural connectivity in Ethiopia

Also dated 27 November 2025, a report from Broadcast Media Africa details how Ethio Telecom and ZTE are collaborating to extend connectivity to underserved rural communities across Ethiopia. ^[8]

According to that report:

ZTE and Ethio Telecom have deployed 152 rural base stations across remote areas in East Africa.
The project is part of ZTE’s “Signal Reach Program”, aimed at delivering sustainable, cost‑effective networks in hard‑to‑serve markets.
The partnership has brought 2G/3G/4G coverage to more than one million Ethiopians in sparsely populated regions, improving access to services such as agriculture, education, healthcare and digital payments via the Telebirr platform.
Ethio Telecom’s 4G coverage reportedly increased from 37.5% in 2024 to about 70.8% in 2025, with ZTE’s EcoSite, EcoEnergy and EcoDevice solutions helping handle power constraints and difficult terrain.

Why this is stock‑relevant:

It illustrates ZTE’s ability to win and execute large rural‑coverage projects in emerging markets – areas where network vendors can still find growth even as urban 5G spending slows.
Rural projects often come with thinner margins, but they can increase installed base and recurring service revenue, and they strengthen relationships with state‑backed operators.

3. EU ePrivacyseal Global certificate for network & smart‑home products

In Europe, The Register’s Vendor Voice section reported today that ZTE has obtained the EU “ePrivacyseal Global” certificate for five of its fixed‑network and smart‑home products. ^[9]

Highlights from the certification:

The ePrivacyseal audit covers a portfolio including:
- ZXA10 C600 series optical line terminal (OLT) equipment
- The ZENIC ONE R20 access‑network management system
- The SCP cloud platform for managing fixed‑line terminals
- The SMP set‑top‑box management system
- The ZLife smart‑home app
The certification confirms compliance with strict European standards around data protection, encryption, access control and transparency, aligning with GDPR‑style requirements.
ZTE is framing this as a major milestone in privacy‑by‑design and a cornerstone for expanding its broadband and smart‑home footprint in Europe.

For investors, this development partly counterbalances political and regulatory headwinds in Europe (more on those below) by strengthening ZTE’s argument that its products meet top‑tier privacy and security benchmarks.

4. New high‑severity security vulnerability in ZTE ElasticNet

On the risk side, CVE trackers today list a newly disclosed vulnerability CVE‑2025‑66314, affecting ZTE ElasticNet UME R32 on Linux. ^[10]

Public summaries describe it as:

A “High” severity “Improper Privilege Management” flaw,
Allowing attackers to access functionality that is not properly constrained, potentially escalating privileges within the affected system, and
Mitigated by installing the latest security patch from ZTE.

While no widespread exploitation has been reported in public feeds yet, vulnerabilities in network‑management software are watched closely by carriers and regulators. Investors will want to see ZTE:

Roll out patches quickly,
Communicate clearly with operator customers, and
Avoid any high‑profile incidents that could undermine the positive message from its new ePrivacy certification.

Fundamentals behind the move: growth vs profit pressure

Today’s rally comes just weeks after ZTE reported nine‑month 2025 results that were a mix of strong top‑line growth and weak bottom‑line performance.

Revenue growth driven by “Connectivity + Computing”

In late October, ZTE announced that revenue for the first nine months of 2025 reached about CNY 100.5 billion, up roughly 11.6% year‑on‑year. ^[11]

Key structural trends:

Computing‑related revenue – including servers, storage and data‑center solutions – grew about 180% YoY and now accounts for roughly a quarter of total revenue. Within that, servers and storage rose around 250%, with data‑center revenue up about 120%. ^[12]
ZTE’s government‑enterprise segment – providing solutions for public‑sector and corporate clients – grew around 130% YoY, partially offsetting a slowdown in domestic carrier‑network investment. ^[13]

This supports ZTE’s strategic pitch that its “Connectivity + Computing” and “All in AI, AI for All” strategies are gradually shifting its revenue mix toward higher‑growth computing and enterprise segments.

Profitability: sharply lower earnings and rising costs

The same reports, however, show that profitability is under pressure:

Net profit attributable to ordinary shareholders for the first nine months was about CNY 5.3 billion, down roughly 32–33% YoY, even as revenue rose double‑digits. ^[14]
Commentary from Mobile World Live notes that operating costs jumped around 30% YoY to nearly CNY 69.8 billion, outpacing revenue growth and dragging profit lower. ^[15]
A separate breakdown from Bamboo Works highlights that in Q3 alone, net profit plunged nearly 88% YoY, while revenue in that quarter grew about 5% to roughly CNY 29 billion. ^[16]

In other words:

ZTE is growing, but
It is spending heavily – on R&D, computing infrastructure, overseas expansion and likely on compliance and security – which is compressing margins.

The market’s job now is to decide whether today’s mid‑30s trailing P/E is justified by the growth in AI‑ and computing‑driven businesses, or too rich given the pressure on net income. ^[17]

Regulatory and geopolitical overhang: Europe’s push to phase out ZTE

Investors shouldn’t view today’s positive news in isolation. A powerful regulatory headwind is building in Europe:

On 11 November 2025, TechCrunch reported that the European Commission is considering legislation that would force EU member states to phase out equipment from “high‑risk” vendors such as Huawei and ZTE from 5G and future telecom networks. ^[18]
The proposal would turn what has so far been non‑binding guidance (since 2020) into hard law, with potential infringement procedures and financial penalties for member states that fail to comply. ^[19]

If enacted and rigorously enforced, such measures could:

Reduce ZTE’s market share in European 5G and fiber projects,
Increase costs for complying with security and localization requirements, and
Add long‑term uncertainty to its international revenue mix.

Today’s EU ePrivacyseal certification helps demonstrate that ZTE is investing in compliance and privacy, but it doesn’t completely neutralize the geopolitical concerns driving Europe’s policy. ^[20]

How today’s news fits together for ZTE A‑share investors

Putting all of this into a single narrative for ZTE Corporation Class A (000063.SZ):

Price action
- The stock is up about 3% today on elevated volume, suggesting markets are responding positively – at least in the short term – to the mix of growth‑oriented announcements and improved sentiment after the Q3 earnings shock. ^[21]
Growth story strengthened by real deployments
- The MWC Doha showcase and the Ethio Telecom rural‑connectivity project underline ZTE’s ability to turn its 5G‑A, AI and energy‑efficient solutions into real contracts in both wealthy Gulf markets and price‑sensitive African markets. ^[22]
Moat building via compliance and certification
- The EU ePrivacyseal Global certificate adds a tangible credential in Europe, where privacy and data‑protection compliance are essential for winning broadband and smart‑home deals, and may help counter arguments that ZTE cannot be trusted with European consumer data. ^[23]
Risks that markets cannot ignore
- The new CVE‑2025‑66314 vulnerability reinforces that large network vendors live under constant cybersecurity scrutiny, and any failure to patch quickly could damage trust. ^[24]
- EU legislative momentum toward phasing out Huawei and ZTE equipment remains a serious medium‑term risk for international growth. ^[25]
- Margin compression and earnings volatility – shown by the steep Q3 profit drop – remain front‑of‑mind for longer‑term investors. ^[26]
Valuation context
- With a mid‑30s trailing P/E, mid‑20s forward P/E and 1.5–1.6% dividend yield, the A‑share looks priced as a growth‑plus‑income name rather than a deep value play. ^[27]
- Today’s move keeps the price roughly in the middle of its 52‑week range, leaving room for both upside and downside depending on how quickly profits recover and how severe any regulatory restrictions become. ^[28]

What to watch next

For readers tracking ZTE Corporation Class A stock beyond today:

Upcoming earnings:
- Current calendars point to 26 February 2026 as the next key earnings date, when ZTE is expected to release full‑year 2025 results and more detail on capital spending and margins. ^[29]
Policy developments in Europe and other Western markets:
- Any draft or final legislation in the EU that explicitly names or constrains ZTE will be closely watched, as will responses from major carriers. ^[30]
Cybersecurity follow‑through:
- Pace of patch roll‑out and any regulatory commentary on ElasticNet UME will help determine whether CVE‑2025‑66314 remains a technical footnote or becomes a reputation issue. ^[31]
Execution in high‑growth segments:
- Continued evidence that computing, AI infrastructure, and government‑enterprise projects are scaling profitably will be critical to justifying the current valuation. ^[32]