Shares digital

A major distribution deal is the latest boost for ZTC Communications (ZTC:AIM), which continues to cash in on its niche position as a designer and assembler of low-to-mid range phones, aimed at the rural communities of western, northern and central mainland China.

Under the terms of the deal, ZTC will make up to 400,000 handsets for Beijing Vosia Information Technology to distribute through China Mobile outlets across three Chinese provinces. This compares to the 512,600 units which the £14.7 million cap made in the 12 months to June 2007. Deliveries are due to commence in March.

Shares in ZTC jumped 4% to 13.5p, a level still well below last March’s 20p listing price, even though chief executive Charles Huang warned further capital will be required to fund the working capital associated with such a large project.

Shares says: Wait for details of the financing plan but more growth looks on the cards.

by: Russ Mould