Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  SHENZHEN STOCK EXCHANGE  >  ZTE Corporation    000063   CNE000000TK5


News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Huawei to invest $3.1 billion in Italy but calls for fair policy on 5G: country CEO

share with twitter share with LinkedIn share with facebook
share via e-mail
07/15/2019 | 10:30am EDT
A Huawei signage is pictured at their store at Vina del Mar

MILAN (Reuters) - China's Huawei Technologies said it would invest $3.1 billion in Italy over the next three years, as the Chinese telecoms giant called on Rome to ensure the "transparent, efficient and fair" use of its 'golden power' on 5G network development.

Speaking at an event in Milan on Monday, the chief executive of the telecoms giant's Italian unit, Thomas Miao, said Italy's golden power - which allows the state to intervene in the private sector in the defense of national security - should be extended to all vendors in the European Union.

Italy recently beefed up the measure due partly to concerns over the potential involvement of Huawei and fellow Chinese company ZTE Corp in the development of 5G networks, a government source said on Friday.

Miao said Huawei would add 1,000 jobs in the country over the next three years.

He also confirmed the Chinese company would cut 1,000 jobs in the United States. He said if the company is kept on a blacklist in August by Washington, it has "a plan B" to guarantee supplies of components.

The United States has lobbied Italy and other European allies to avoid Huawei equipment and also to closely scrutinize ZTE, alleging the vendors could pose a security risk. Both companies have strongly denied any such risk.


Italy's ruling coalition, forged a year ago between the anti-establishment 5-Star Movement and the far-right League, endorsed China's ambitious "Belt and Road" infrastructure plan in March, becoming the first major Western power to back the initiative to help revive the struggling Italian economy.

The rapprochement has angered Washington and alarmed some European Union allies, who fear it could see Beijing gain access to sensitive technologies.

In a move to soothe the U.S. worries, Rome passed a decree last week strengthening its powers in infrastructure projects that involve the rollout of the country's 5G telecoms network.

The decree must be approved by parliament in the next 60 days or it will expire.

Huawei Italia's Miao called for the 5G golden powers to be applied not only to non-EU companies but also to all EU vendors.

"It is very important that the 5G technology is neutral," Miao said adding that the new norms should apply "to all players to make sure that from day one we have a safe and reliable infrastructure".

He also asked the government to speed up its approval procedures.

"In the worst case scenario up to 165 days may be needed to get approval for deals regarding 5G," Miao told reporters, adding this was too long a period of time.

Telecom Italia and Vodafone Italia are expected to finalize soon a deal to jointly roll out 5G infrastructure in Italy. Both companies were waiting for the decree to decide how to deal with Chinese partners such as Huawei.

Miao said that, in the meantime, the company "is doing business as usual" with its partners in Italy.

(Reporting by Elvira Pollina; Writing by Giulio Piovaccari and Giselda Vagnoni; Editing by Jan Harvey and Emelia Sithole-Matarise)

By Elvira Pollina

Stocks mentioned in the article
ChangeLast1st jan.
TELECOM ITALIA 2.03% 0.4563 End-of-day quote.-7.47%
VODAFONE GROUP PLC 0.69% 152.18 Delayed Quote.-1.28%
ZTE CORPORATION End-of-day quote.
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on ZTE CORPORATION
08/13ZTE : Drei, ZTE and the Federal State of Carinthia start 5G operations in the di..
08/12ZTE : and China Mobile empower China's first 5G sporting events with 5G Live TV ..
08/09ZTE : and China Mobile empower China's first 5G sporting events with 5G Live TV ..
08/07U.S. government contractors get first look at Huawei ban
08/07U.S. government contractors get first look at Huawei ban
08/05ZTE : ranks among the FTSE4Good Index Series for second consecutive year
07/31ZTE : signs 5G cooperation agreement with esteemed university in Colombia
07/29ZTE : Ramaphosa is "last hope" for South Africa, Chinese diplomat says
07/26ZTE : and China Mobile jointly develop MTN standards for 5G transport at ITU-T
07/25ZTE : Launches the First 5G Indoor Router in the Middle East
More news
Financials (CNY)
Sales 2019 95 741 M
EBIT 2019 6 317 M
Net income 2019 4 552 M
Debt 2019 1 194 M
Yield 2019 0,80%
P/E ratio 2019 28,2x
P/E ratio 2020 21,9x
EV / Sales2019 1,24x
EV / Sales2020 1,05x
Capitalization 118 B
Duration : Period :
ZTE Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 16
Average target price 33,20  CNY
Last Close Price 30,13  CNY
Spread / Highest target 49,4%
Spread / Average Target 10,2%
Spread / Lowest Target -19,3%
EPS Revisions
Ziyang Xu Chief Executive Officer & Executive Director
Da Xiong Xie Chairman-Supervisory Board
Zixue Li Chairman
Li Ying Chief Financial Officer & Executive Vice President
Hui Jun Xu Chief Technology Officer & Executive VP
Sector and Competitors
1st jan.Capitalization (M$)
CISCO SYSTEMS10.62%208 771
NOKIA OYJ-7.60%28 873
ERICSSON AB3.39%27 685