Huawei poised to meet revenue growth target this year

Leading telecoms equipment supplier reports strong first half with sales rising 10.8 per cent

PUBLISHED : Wednesday, 24 July, 2013, 1:18pm
UPDATED : Thursday, 25 July, 2013, 2:02am

Huawei Technologies, the world's second-largest telecommunications equipment supplier, expects to meet its target of 10 per cent revenue growth this year, based on "robust growth" in the first half and "positive business indicators".

The privately held firm yesterday said in a statement its first-half revenue rose 10.8 per cent to 113.8 billion yuan (HK$143 billion) from a year earlier.

The announcement did not provide a net profit number. But the Shenzhen-based company, the country's biggest telecommunications equipment manufacturer, projected a net profit margin of 7 to 8 per cent this year.

Cathy Meng Wanzhou, the company's chief financial officer, attributed the gains in the first six months of the year to "steady growth of the carrier network business, the expansion of enterprise business, and the fast growth of consumer business".

Huawei has been aggressive in cornering high-speed 4G mobile network projects.

At the end of May, it estimated that it had won more than 180 commercial 4G network supply contracts and successfully deployed about 85 4G networks worldwide.

"From these positive indicators, we believe Huawei will generate strong performance and profit margins in the second half of this year, and are confident that we will achieve our goal to increase revenue by 10 per cent," Meng said.

Ricky Lai, a research analyst at Guotai Junan International, said: "Huawei management was quick to sharpen the company's focus on offering advanced 3G and 4G network equipment, as many network operators worldwide started to phase out their 2G networks."

Huawei will generate strong performance and profit margins in the second half
Cathy Meng, Huawei Technologies

According to Bernstein Research, Huawei had a leading 28 per cent share of the mainland's wireless network equipment market last year. It also estimated that the bulk of global 3G network projects around the world have already been awarded, while a wave of 4G network launches has just started.

Meng said Huawei, which has about 150,000 employees worldwide, would continue to "increase investment in core growth areas and boost efficiency through a series of operational and management reviews".