BEIJING, April 10 ZTE Corp ,
China's second largest telecom equipment maker, expects its
first quarter net profit to more than double as it chases higher
margin contracts and benefits from China's roll out of 4G
In a stock exchange filing, the Shenzhen-based ZTE forecast
profits for the January-March quarter to rise to 425-637 million
yuan ($68.5-102.7 million) from 205 million yuan in the same
year ago period.
ZTE and rival Huawei Technologies Ltd are set to
reap the rewards of contracts to build high-speed 4G mobile
networks at home and abroad. ZTE predicts global spending on 4G
will be $100 billion in 2014 and that spending in China will be
100 billion yuan ($16.13 billion).
ZTE also hopes to ship 60 million smartphone units this
year, with at least 40 percent, or 24 million, of those being 4G
handsets, the company said.
ZTE's Hong Kong-listed shares closed 1.4 percent higher at
16.40 Hong Kong dollars ($2.12) on Thursday, versus a 1.5
percent increase in the Hang Seng Index.
($1 = 6.2005 Chinese Yuan)
($1 = 7.7531 Hong Kong Dollars)
(Reporting by Paul Carsten; Editing by Miral Fahmy)