Engine shutdown ZTE's growth rate at 4-year low

In the second quarter, the weak ZTE (000063, closing 22.68 yuan) disclosed the 2010-year report today.　　Previous market fears of performance setbacks did not occur, but revenues and net profits were about 10% per cent year-on-year growth, still the company's lowest since 2006. Domestic market revenue grew by only 3.47% in the first half of the year, thanks to slow investment in the country's big three telecoms operators and the "engine" of the company's performance last year.　　ZTE's own first major business "operator network Products", in the first 6 months of this year, the operating income achieved a micro-increase of 1.08%. Performance growth fell to 4 years trough in the report, the first half of ZTE to achieve business income of 30.725 billion yuan, an increase of 10.89%, achieve net profit of 877 million yuan, an increase of 12.02%; after deducting the non-recurrent profit and loss, net profit is only 744 million yuan, the year-on-year decline of 1.49%　　The basic earnings per share is 0.32 yuan, the return on net assets is 4.2%; The figures set a record low for ZTE since the middle of 2006. Affected by the fluctuations in the industry investment cycle in 2006, the company performance, while the medium-term revenue growth of 1.82%, but the net profit was 45% lower than 2005, after the 2007~2009 three years, the company's medium-term earnings growth rate reached 45%, 30% and 40.44% respectively, The net profit index grew 32%, 21% and 40% year-on-year.　　2010, the Half-year results, the company's latest 4-year low. The reason for the weak performance was that the main engine of ZTE's growth last year "stalled". The same period last year, the company's overseas income growth of only 0.7% per cent, the domestic market to achieve revenue of 14.95 billion yuan, a large increase of 111.7%, accounting for the total revenue in the period of 54%; the first half of this year, the company's domestic market income of 15.47 billion yuan, the year-on-year growth of 3.47%,　　The share of total revenue fell to 50%, while overseas earnings grew less than 20% per cent over the same period. ZTE said the situation was mainly due to a slowdown in domestic 3G investment. "Daily economic news," a reporter consulted the Ministry of Industry data found that the first half of the domestic telecommunications sector main business income, although year-on-year growth of 5.9%, compared with the same period last year, the 2.3% is high; but the three major operators of investment is relatively slow, the basic telecommunications enterprises to complete the scale of fixed assets investment　　China Unicom actually completed its investment in the first 5 months of this year, representing 8.3%, 23% and 5.3% per cent of their annual planned investment. Mobile phone business into the only bright spot according to the main business composition, ZTE first major operators network products to achieve business income of 19 billion yuan in the first half of this year, only a 1.08% increase in three of the main industry in the penultimate; but last year the business revenue reached 18.8 billion yuan, the year-on-year increase of 46.24%, Is the growth of all businessesFastest. Only the handset terminal is the company performance bright spot.　　ZTE Mobile phone business in the first half of the year to continue its growth since 2006, the report period of revenue reached 7.8 billion yuan, an increase of about 40%, for the reporting period of the company's most eye-catching main industry, the main business income, the share of revenue, also from the same period last year 20% steadily increased to 25%. Despite this year's election of the new president to the outside world to demonstrate the determination to open up overseas markets, but from the report, ZTE still pinned performance growth center in the domestic market. In the report, the company will continue to consolidate the good partnership with the domestic operators, and strive to consolidate and upgrade the current market position in the second half of the major network construction projects, and according to the reporter understand, although the current three major operators 3G network has been completed, but in the second half of the base station equipment,　　There will still be telecommunications and Unicom's early expansion of the network upgrade bidding, and mobile just finished, the scale ahead of the total of three TD four, will also be reflected in the second half of the year in the company's performance. Although not as bright as the previous year, ZTE's share price has been the subject of institutional attention after a slump in the bearish news in India. The report showed that the first half of the research company's institutional team is still huge, especially after entering the June, Goldman Sachs, China Gold, everbright, investment and other institutions have held the company's investors meeting. And compared with the quarterly, the holding company's Fund although there are considerable changes, but Yi-Da's total of 4 funds into the company's top ten circulating shareholder list.