[ET Net News Agency, 6 January 2020] DBS Group Research raised its target price for ZTE
Corporation (00763) to HK$22.7 from HK$21.9 and maintained its "hold" rating as it faces
higher operational risks amid the Sino-US trade dispute.
The research house said ZTE is one of the key beneficiaries of 5G capital expenditure
(capex). DBS said Chinese technology companies with global exposure are now facing higher
business risks amid the US-China trade dispute. It noted that a compliance team from US
regulators has been placed at ZTE after it has violated US export controls related to
Iran. Potential operational disruptions due to suspension of component supply would lead
to business uncertainty and loss of customer confidence. (KL)