ZTE's net profit slowdown is expected to rebound this year

Every reporter Hu Yuhui today ZTE (000063, closing price 32.10 Yuan) published annual report.　　Despite a lot of twists and turns in overseas markets last year, domestic telecoms investment fell sharply, but the company still has business performance bright Eye, the annual income breakthrough 70 billion yuan. After last year's trough, with the recovery of domestic capital expenditure, ZTE, as a communication system equipment maker, is expected to step back into the industry boom.　　Wanguo analysts said the company's performance growth could return to around 30%. 2010 Domestic market growth was weak 2010 ZTE realized total operating income of 70.26 billion yuan, an increase of 16.58%, net profit of 3.25 billion yuan, growth of 32.22% year-on-year, basic earnings per share 1.17 yuan. This performance data, obviously not 2009 years that the bright eye.　　2009, the company's operating income growth of 36%, net profit year-on-year growth of 48%, 2010, the growth of these two indicators fell sharply. For ZTE, the industry's big environment last year was not easy. Overseas market intergrowth twists and turns last year, the first half of the Indian market banned domestic equipment, followed by European anti-dumping on domestic data cards, the two-tier market in ZTE stock prices due to these events under heavy pressure; the domestic market has a sharp decline in telecommunications investment, according to the Ministry of Statistics data,　　2010, the national total investment in fixed assets 319.7 billion yuan, compared to 2009 372.49 billion yuan to reduce 14.2%.　　The latest annual report shows that in 2010, the company's domestic market revenue grew 5.9% year-on-year, while overseas markets contributed a 27.45% increase in revenue, compared with a 74.07% increase in the domestic market and a 11.34% increase in overseas markets in 2009. Return to rapid growth this year but industry researchers have pointed out that investors need not be pessimistic about the company's annual report, in fact the industry has improved in the second half of last year, and the latest series of moves from operators and companies have made people confident of ZTE's performance this year. One of the most closely watched Indian markets, according to the daily Economic news, has resumed shipments in the third quarter of last year.　　Compared with the 2010.5 Annual report, ZTE achieved 46% of its operating income and 73% net profit in the second half of last year. On the domestic market, China Mobile's latest move has dispelled fears of a sharp reduction in domestic telecoms investment over the next three years.　　March 16 China Mobile announced that the capital spending plan reached 132.4 billion yuan this year, not only 6.5% higher than last year, compared to the peak of domestic telecom investment in 2009 also 2%, but also compared with the original planning of 98 billion yuan significantly increased 35%. Sub-business look, in recent years, the growth of the terminal industry will continue to be ZTE value. Shiyou, the executive vice president of the mobile phone business unit, said last month that only the smartphone part of the 2011-year shipping target was 10 million, up from about 400% per cent of shipments from more than 2 million units in 2010.