ZTE climbs 3% Goldman Sachs is undervalued but lacks incentives

Foreign said its CDMA base station shipments of a large increase in ZTE, H shares this morning with the city to the good atmosphere, the share price rose 3.16% to HK $26.15, 1.7681 million shares.　　Goldman Sachs issued a report saying that its neutral rating, which is equivalent to 19 times times the 2009 earnings ratio, is at the low end of the 19-25-fold earnings ratio since 2005, but it is expected that China's 3G capital spending peaked and income growth visibility is lower, which will dampen valuations. Goldman Sachs said it is bullish on the long-term growth potential of ZTE and expects the company to become one of the world's three largest handset makers by 2013, but its lack of good news abroad has reduced the visibility of its profits. And with China's official launch of commercial 3G services, marking the culmination of 2009 3G capital spending, it is a sign that ZTE needs to focus on overseas markets to grow, particularly in the face of the risk of the 2009 emerging countries reducing their telecoms capital spending.