The unexpected increase in capital spending by the mainland's three major telecommunications network operators this year is poised to bring a windfall to Comba Telecom System Holdings.
According to senior management at Hong Kong Science Park-based Comba, demand from its customers China Mobile, China Unicom (Hong Kong) and China Telecom will focus on so-called wireless enhancements for their respective 2G, 3G and Wi-fi networks.
The three carriers, which accounted for 84.8 per cent of Comba's revenue last year, said in separate annual earnings announcements last month that they would be boosting capital investments. A year ago, they had said capital spending would either decrease or stay flat.
Comba specialises in wireless-enhancement products, which include indoor and outdoor repeaters, tower-mounted boosters and remote radio units used by operators to cover blind spots in 2G, 3G and Wi-fi network coverage.
'The management is confident that the group will become the world's largest wireless communications enhancement supplier in the near future,' said Comba chairman and president Tony Fok Tung-ling.
In a report, DBS Vickers Securities analyst Tam Tsz-wang said Comba is 'on track for solid growth'.