ZTE sees overseas sales up 60% in 2004

Chinese vendor ZTE has told analysts it expects international sales to grow by 60% in 2004, according to Lehman Brothers.

A spokesman at the Chinese telecom equipment maker said he would not confirm the figure to the media. "This is an internal figure. It is okay to disclose it to small groups but it is a different matter when it comes to releasing it to the media," he said.
ZTE said it was expanding aggressively overseas, particularly in developing countries in Africa, South Asia and Russia, Lehman Brothers analysts Alan Hellawell and Alex Mou said in a research note after visiting the firm s senior management on Thursday.

By 2010 ZTE, one of China s largest telecom gear companies, hopes to grow to become a global equipment vendor with $10 billion in sales, the note said.

ZTE, which sells switching and wireless infrastructure as well as handsets, competes with global giants in its home market as well as overseas. Locally, it counts unlisted Huawei Technologies as its chief rival.

"International revenue, a key growth driver, is expected to grow 60% in 2004, based on wireless builds for developing countries," Lehman Brothers said.

ZTE told the brokers it expected international sales this year to reach $500 million to $600 million, or around 27% of total revenue. ZTE s internal forecasts show its overseas business is set to grow to $800 million, $1.2 billion and then $2 billion in the three years from 2004, Lehman Brothers said.

China is encouraging home grown manufacturers to conquer the international telecoms market. Analysts have said ZTE s major advantage over its global peers is a vast pool of engineering talent at home, whose cost is a fraction of that in developed countries.