A revival in exports and domestic demand for 3G handsets saw ZTE Corp (0763.HK), China’s second-largest telecom equipment manufacturer, post a 39.7% jump in first-quarter net profit, Reuters reported. The company’s net profit came in at US$16.1 million over revenue of US$1.9 billion. ZTE said there was strong growth in its terminals segment, which includes 3G handsets, with sales rising 41.8%. Its carrier network segment remained flat. Domestic investment in 3G systems reached US$21 billion in 2009, with ZTE and rival Huawei Technologies the principal beneficiaries. ZTE took about 36% of the 3G contracts. Analysts expect China’s three network operators to spend less on equipment this year, but this should be offset by growth in sales of 3G handsets. ZTE also expects exports to strengthen, claiming to see more opportunities in international markets as the effects of the global financial crisis begin to wane.
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