By Clarence Leong
ZTE Corp.'s shares jumped after the company released preliminary results for the first half that showed strong performance.
The Shenzhen-based telecom equipment company released late Friday its preliminary first-half results, with net profit more than doubling to 3.8 billion yuan (US$586.5 million) to CNY4.3 billion. It attributed the strong performance partly to rising operating revenue and a substantial improvement in profitability.
ZTE's H-shares were last up 10% at HK$24.15 in Monday afternoon trade, on pace for their biggest one-day gain since November last year. The price was approaching the HK$24.25 closing level on June 30, a recent closing high.
Its A-shares were also up 10% at CNY34.40.
The latest profit guidance suggested ZTE could deliver consensus-beating performance in 2021, U.S. investment bank Jefferies said. It kept its buy rating on the stock, citing a market-share gain in the company's 5G business as one of the reasons.
Write to Clarence Leong at clarence.leong@wsj.com
(END) Dow Jones Newswires
07-12-21 0142ET