ZTE expects H114 net profit surge on the back of 4G successes

China’s ZTE has raised its forecast for first half profit as the company says it has maintained strong momentum in its 4G infrastructure operations.

Net profit attributable to shareholders of the listed company will be between RMB 1 billion and RMB 1.15 billion (US$161 million and US$185 million) in the first six months, an increase of between 223 per cent and 271 per cent from a year earlier, according to the revised guidance published by ZTE.

This is compared with earlier guidance of between RMB 800 million to RMB 1 billion.

In the first six months, 4G infrastructure accounted for an increased proportion of revenue. The company retained its position as the leading vendor of 4G infrastructure to China Mobile, achieving increased market share in the tender this year.

Following the launch of new LTE multiband smartphones this year, the company forecasts that 4G devices will account for 40 per cent of total terminals shipments in 2014.

ZTE expects its business to benefit from the award of FDD-LTE licences in China, and the investment in 4G networks in markets such as Japan and India.