ZTE sees more China growth despite 3G slowdown

Analysts see 2010 revenue up 24 pct, vs 36 pct in 2009

* Company sees China revenue continuing to grow (Adds details, quotes)

HONG KONG, April 9 (Reuters) - ZTE (0763.HK), China's No.2 telecoms equipment maker, said on Friday it expected to keep growing in its home market this year, even as many see spending slowing there after a 3G investment spree in 2009.

Last December, China's telecoms regulator said domestic investment in 3G systems reached $21 billion in 2009.

Strong 3G spending is expected to continue into this year, but recent plans from China's three major telephone operators have been lower than expected, prompting observers to lower their outlook for ZTE (000063.SZ) this year.

"This year, domestically and internationally we will achieve this goal of rapid growth," ZTE President Shi Lirong told a media briefing on Friday. "We are very positive about our development."

China accounted for about half of ZTE's total revenue last year, generating more than 30 billion yuan ($4.4 billion) in 2009.

Analysts expect ZTE's revenue to grow 24 percent this year to about 75 billion yuan ($11 billion), slowing from 2009's 36 percent growth, due in large part to a sharp slowdown in 3G spending in China.

"I'm confident the company can maintain a fast growth rate," Shi said of ZTE's broader prospects this year.

ZTE shares were up 2.67 percent at HK$48.15 midway through the trading day in Hong Kong, outpacing the broader market's .HSI 1.34 percent gain.

Late on Thursday, the company reported its fourth quarter profit rose 50 percent on strong sales from 3G spending at home and booming exports. [ID:nTOE63606S]

The company and crosstown rival Huawei Technologies [HWT.UL] have been two of China's biggest success stories, banking on demand from a strong home market and growing success in interntional markets, where they compete with the likes of Ericsson (ERICb.ST) and Nokia Siemens Networks [NOKI.UL]

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