The Avanti Group Observes Huawei Posting Record Earnings.


Posted April 10, 2014 by rlewis1968

The Avanti Group comments on China’s largest manufacturer of telecom equipment, Huawei Technologies Co as they forecast a 10 percent increase in sales for 2014 after posting record earnings to date driven by rising demand from wireless carriers.

 
The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor’s attention to recent developments in the mobile and telecom sector.

The Chinese telecom infrastructure component manufacturer believes that its revenue will rise from 239 billion Yuan or $38 billion in 2013, calculated on the Shenzhen based company’s Net income gaining 36% over that of 2012, to 21 billion Yuan for 2013, as expanding wireless and cellular service providers continue to drive demand in an ever growing sector.

With sales for Huawei’s carrier network unit rising some 4% up to 166.5 billion Yuan, the company’s consumer business also boosted its sales 18% to 57 billion Yuan and the network infrastructure manufacturer’s enterprise division saw its unit revenue climb 32% to 15.2 billion Yuan according to figures released by Huawei today.

“Huawei has been making some great strides in its business of supplying telecom infrastructure equipment despite the now evidently hypocritical standpoint from U.S legislators that bars the company from contracting work there. Luckily with Asian development surging this demand has helped the company to realize record earnings for the year and this looks set to continue for some time yet,” said Martin Blanke Equity Research Specialist at The Avanti Group.

Huawei’s worldwide smart phone sales in 2013 were beaten only by those of Samsung Electronics Co and Apple Inc as the Chinese company grew its global market share for handsets to 4.9%, up from 4% in 2012. Despite such gains the Shenzhen based Huawei’s company’s smart phone targets are being challenged by a slowing growth outlook for the devices and additional competition from Lenovo Inc, the world’s newest third largest producer, after acquiring Motorola from Google Inc.

“Being so dispersed across the telecom manufacturing and service sector has enable Huawei to weather slowdowns in smart phone demand by capitalizing on infrastructure provisioning and it is this inherent depth that makes the company a dependable investment. While surges and slump in demand are to be expected in certain sectors overall growth is still forecast in positive figures and Huawei will be able to thrive from all aspects of this demand,” concluded Martin Blanke Equity Research Specialist at The Avanti Group.

The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.
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Issued By The Avanti Group
Country Japan
Categories Business
Last Updated April 10, 2014