ZTE's net profit increased by more than 10% in the first quarter

NetEase Finance April 19 news ZTE reported the first quarterly quarterly report today.　　The company's first quarter to achieve total operating income of 15.084 billion yuan, an increase of 13.8% per cent, the net profit of the listed company shareholders 127 million yuan, an increase of 15.86%;　　Products, the company's network revenue growth of 1.57%, mainly because of wireless systems and cable and access products sales growth, end product income growth of 51.04%, mainly from mobile phone and data card products sales, telecommunications software systems, services and other products revenue slightly decreased by 0.26% year-on-year. Minsheng Securities analyst Huang Wengo that with the development of the SDR soft base station of ZTE Core wireless equipment, the growth of the software revenue is far from the growth of hardware equipment revenue will become the future development trend. SDR (that is, software definition radio) refers to the same hardware platform, through the software configuration to achieve a variety of standards, a variety of standard and flexible configuration and conversion, is conducive to the compatibility of multiple-system win and improve resource utilization.　　As ZTE sells more and more SDR base stations, the future demand for software upgrades will grow, which will lead to an explosion in software revenue. Huang Wengo estimated that ZTE's 2011-13 EPS was 1.45, 2.01 and 2.59 yuan respectively. The current share price is only 20 times times higher than the P/E ratio, given ZTE's 35% per cent growth rate in 2012-13, giving ZTE a 30 times-fold earnings hike of 6-month target price to 43.5 yuan. In the future, with the trend of forecasts to be further confirmed, ZTE's valuation will have a further rise in space.　　As a result, Huang Wengo the company's investment rating to "strongly recommend". According to the company 2010 reported that the company 2010 year to achieve operating income of 70.264 billion yuan, an increase of 16.58% per cent, the realization of ownership of the listed company shareholders net profit of 3.25 billion yuan, an increase of 32.22%. The basic earnings per share is 1.17 yuan.　　The company's annual distribution plan for every 10 shares to increase 2 shares sent cash 3 yuan (including tax). 19th, ZTE closed at 28.39 Yuan. Responsible Editor: NF058