Chinese equipment maker Huawei expects its revenues to grow at a compound annual rate of 10% over the next five years, despite the current slowdown in the equipment market and its difficulties in the US.
Huawei (Shenzhen, China) provided the forecast after reporting that net profit for 2012 was 32% higher than for 2011, at RMB15.4 billion ($2.48 billion), with revenues up 9%, to RMB220.2 billion.
“In 2012, Huawei met business performance expectations through improved operational efficiency,” said Guo Ping, Huawei’s rotating and acting chief executive.
Ping said the company planned to focus on emerging opportunities in the areas of cloud computing and big data, as well as the sale of smartphones.
Huawei reported improved revenues across all divisions and regions, with the fastest growth coming in the Asia-Pacific, and particularly its domestic market.
Sales were up by 7.2% in the Asia-Pacific, to RMB37.4 billion, and by 12.2% in China, to RMB73.6 billion.
By contrast, the increase in the Americas was just 4.3%, to RMB31.8 billion.
Last year, Huawei and domestic rival ZTE (Shenzhen, China) were effectively barred from competing in the US after congressional authorities labeled them a security threat in a much-publicized report.
Huawei has vigorously denied the accusations and issued another rebuttal during its earnings announcement, according to Dow Jones Newswires.
“There is no possibility that Huawei can pose a security threat to the US,” Ping is quoted as saying.
Some commentators see the accusations as a form of protectionism designed to stop Huawei and ZTE from winning business at the expense of ailing US rivals.
Nevertheless, the company has continued to thrive in other overseas markets, reporting revenue growth of 6.1%, to RMB77.4 billion, across Europe, the Middle East and Africa.
Huawei also noted that it invested 13.7% of total revenues in research and development activities last year, and that it now operates 16 R&D centers and 28 joint innovations centers worldwide.