ZTC Telecommunications joined AIM with an £18.7m valuation in March via the reversal of China-based handset maker and marketer Shenzhen Zhong Tian Equipments into unlisted shell Cassian Investments.

The group assembles and distributes fashionable yet economical ZTC-branded mobiles aimed at the 800 million Chinese living in the lesser developed north, central and western regions of the People’s Republic – the phones are marketed to the low- to middle-income brackets found outside China’s major urban areas.

ZTC recently launched a sixth handset known as the ZT 3158, whose key feature is its ultra-long standby battery life of up to 68 days (1,632 hours). The innovative phone, which can automatically adjust screen brightness to surrounding light to save power, also sports two SIM cards which cost-conscious Chinese consumers can switch between, reducing roaming charges in the PRC.

‘Since its introduction in June,’ commented chief executive Charles Huang, ‘we’ve received very good orders for the 3158, confirming our ability to successfully predict the needs of the Chinese consumer through our market research and distributors.’

‘New handsets are the key to our growth because the Chinese turn over mobile phones pretty rapidly,’ insists Finance director Mark Syropoulo. ‘So we’ll look to introduce between 20 and 24 new phones a year.’ He is also upbeat about prospects in an expanding Chinese mobile phone market in which subscriber numbers are growing fast and penetration in the group’s target rural areas is gathering pace. Since joining AIM, Syropoulo says ZTC has continued to see strong growth while maintaining margins in buoyant markets.

Results for the year to 30 June – which only include a part contribution from the IPO acquisition and bear exceptional listing costs – will nonetheless be ‘materially ahead’ of earlier expectations. Lately trading at a lower price, the shares have speculative appeal.

ZTC Telecommunications	AIM	£2.99m	2.75p	0.00p
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