ZTE profits from a booming demand for 5G
ZTE Corp turned to profit in 2019 with booming 5G network demand, China’s largest public telecommunications equipment vendor said.
Its net profit reached 5.15 billion yuan (US$736 million) in 2019, compared with a loss of 6.98 billion yuan in 2018, when it paid US$1.19 billion to settle a sanctions violation case with US regulators.
Revenue hit 90.7 billion yuan in 2019, a 6.11 percent growth year on year.
ZTE is a major player which will benefit from 5G network construction in China and globally, said analysts.
Great Wall Securities upgraded ZTE’s rating on Monday and expected its profit to hit 6.14 billion yuan this year, a 19 percent growth year-on-year.
ZTE is one of the world’s four major telecommunications equipment vendors, along with Huawei, Ericsson and Nokia.
Huawei, the private company which leads the 5G equipment market, will release its 2019 fiscal result on Tuesday.