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SHANGHAI: China’s Xiaomi Corp reported 15% growth in quarterly revenue on Tuesday, missing estimates, as fewer people bought smartphones at home and rival Huawei grabbed market share.
The company is weathering a bleak domestic smartphone market as economic growth in China slows and Chinese consumers rally in support of beleaguered rival Huawei.
Xiaomi’s stock has lost more than a quarter of its value so far this year.
The company’s revenue in the second quarter ended June 30 rose to 51.95 billion yuan ($7.36 billion) from 45.24 billion a year earlier.
That was short of the 53.52 billion expected by analysts, Refinitiv data showed.
Net income slumped 87% to 1.96 billion yuan. Still, adjusted profit of 3.64 billion yuan beat the 2.74 billion expected by analysts.
Xiaomi said total smartphone shipments in the second quarter rose to 32 million.
Huawei’s market share in China surged by 31% in the June quarter, according to market research firm Canalys, while Xiaomi’s share shrank by a fifth. But Canalys reckons Xiaomi’s shipments to Europe surged 48%.
The company, which listed last year, gets the majority of its revenue from mobile handsets, but also makes money selling online ads and other consumer devices.
Huawei has received a lot of support from Chinese customers who are buying the company’s phones after it was blacklisted by the United States, limiting access to U.S. components and technology.
Xiaomi’s internet services unit, which makes money primarily by placing ads across various apps, accounted for 8.8% of its revenue, flat from one year prior.
When Xiaomi listed in July 2018, executives touted the business unit as key to the company’s continued growth.
On an earnings call, leaders instead highlighted the company’s so-called “AIoT” strategy, short for “Artificial Intelligence and Internet of Things,” in which it invests in artificial intelligence and smart home devices.
The firm has invested in several companies making semiconductors or other key hardware components, trying to emulate the success of Huawei’s HiSilicon semiconductor division.
In the second quarter, Xiaomi funded Verisilicon, a Shanghai-based chip design firm. It also invested in Bestechnic, which designs chips for audio devices.
Several of the companies in which Xiaomi has invested had recently listed or plan to list on China’s newly-opened STAR market, including scooter-maker Ninebot, which acquired the Segway brand in 2015.
Xiaomi’s chief financial officer, Chew Shou Zi, said the investments stem in part from the company’s hopes to build a “Chinese supply chain”, while improving its internal research and development abilities. – Reuters
KUALA LUMPUR, Aug 21 — Bursa Malaysia opened lower today tracking overnight losses of global indices amid cautious investment tone. At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) shed 2.83 points to 1,599.92, after opening 1.52…
KUALA LUMPUR: Bursa Malaysia opened lower today tracking overnight losses of global indices amid cautious investment tone.
At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) shed 2.83 points to 1,599.92, after opening 1.52 points lower at 1,601.24.
The market barometer closed at 1,602.75 yesterday.
On the broader market, losers outpaced gainer 112 to 87, while 146 counters unchanged, 1,610 untraded and 14 others suspended.
Turnover stood at 68.98 million units worth RM30.35 million.
Malacca Securities Sdn Bhd in its equity note today said, the FBM KLCI is expected to be on the road of recovery due to the oversold condition, despite weakening global indices.
“We do see some tempering of the recovery prospects and renewed volatility could still be a near term feature.
“Under the prevailing environment, we think the near term upsides could be limited with the 1,610 level becoming the near term resistance,“ it said.
As for market rebound, it said that the lower liners and broader market shares will continue their rebound, but with increased volatility as profit-taking activities could set in.
“Nevertheless, we still see mild upsides over the near term as bouts of bargain hunting activities will provide some aiding factors,“ it added.
Global indices, Dow Jones Industrial Average lost 0.66% to 25,962.44, Japan Nikkei slid 0.68% to 20.535.64, Hong Kong Hang Seng reduced 0.23% to 26,231 and South Korea’s KOPSI fell 0.02% to 1,959.80.
On heavyweight performance, Press Metal and Kuala Lumpur Kelong both declined six sen to RM4.75 and RM23.76, respectively, while Tenaga Nasional, CIMB Group and DIGI all shed two sen to RM13.68, RM5.16 and RM5.00, respectively.
For the most active stocks, Sealink gained 2.5 sen to 29.5 sen, Brahims, Dagang Nexchange and Icon all added half-a-sen to 16.5 sen, 26 sen and 6 sen, respectively.
The FBM Ace gained 3.39 points to 4,611.57, the FBM 70 declined 13.96 points to 14,169.28, the FBM Emas Index erased 18.98 points to 11,330.69, the FBM Emas Shariah Index depreciated 27.60 points to 11,851.18 and the FBMT 100 Index was 17.71 points lower to 11,167.06.
Sector-wise, the Financial Services Index was 7.31 points lower for 15,598.31, the Plantation Index discounted 23.36 points to 6,738.01, and the Industrial Products and Services Index inched down 0.37 of-a-point to 149.64. – Bernama
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PETALING JAYA: Berjaya Sports Toto Bhd (BToto) reported RM974.9 million in revenue for the two-month period ended June 30, 2019, substantially contributed by sales from the number forecast operation (NFO) business by Sports Toto Malaysia Sdn Bhd and also from the auto retailing business operated by HR Owen Plc.
However, it saw a loss before tax of RM26.8 million, mainly attributed to the impairment of goodwill and assets of the disposal group relating to the leasing of lottery equipment business in the Philippines.
“The group would have registered a pre-tax profit of RM51.6 million had the impairment of goodwill and assets of the disposal group been excluded,“ BToto said.
Due to the change of financial year end, the group’s performance of the current interim and cumulative period results are not comparable against the comparative period.
For the cumulative 14-month period, the group registered RM6.7 billion in revenue, mainly attributed to revenue from Sports Toto, HR Owen and Philippine Gaming Management Corporation (PGMC). PGMC is classified as discontinued operation in the current interim two-month and 14-month period ended June 30, 2019.
Meanwhile, its pre-tax profit came in at RM404 million.
BToto’s board does not recommend any interim dividend for the current two-month period, but the total dividend distribution for the financial period ended June 30, 2019 was about RM215.5 million, representing about 91.7% of the group’s attributable profit for the 14-month financial period.
BToto anticipates that the performance of the NFO business of Sports Toto will be satisfactory and is confident that the group will continue to maintain its market share in the NFO business for FY20.
KUALA LUMPUR: Bursa Malaysia opened lower today as investors await second-quarter and first-half gross domestic product (GDP) announcement by Bank Negara Malaysia this afternoon.
The broader market was, however, positive with gainers edged losers 104 to 66, while 126 counters were unchanged, 1,634 untraded and 14 others suspended.
Turnover stood at 50.60 million units worth RM25.61 million.
At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 3.83 points to 1,596.46, below the psychological support level of 1,590 from yesterday’s close of 1,600.29.
The index opened 2.23 points lower at 1,598.06.
Malacca Securities Sdn Bhd said the announcement of second-quarter growth will influence the direction of market barometer today.
“However, the ongoing results reporting season is seeing mixed-to-lower results that will still keep market conditions mostly guarded.
“Despite the still insipid market conditions, we think that mild bouts of bargain hunting activities could help to prop-up the FBM KLCI and possibly allow it to end the week on a more positive note,“ it said.
The research house also said that with the key index holding on to the psychological 1,600 points level, the resistances would remain at 1,610 and 1,620 levels, while supports are at 1,580-1,590 levels.
“We see the mild positivity extending to the lower liners and broader market shares that could allow indices like the FBM Small Cap and FBM ACE to also end the week on a more positive note, albeit we continue to think that participation is likely to remain on the thin side due to the continuing cautiousness,“ it said.
As for the heavyweight performance, Kuala Lumpur Kepong lost 32 sen to RM23.58, Digi and Dialog both shed one sen to RM4.98 and RM3.51, respectively; while Press Metal and IHH both lost four sen to RM4.72 and RM5.64 respectively.
For the most active stocks, Datasonic and Iris gained one sen to 91.5 sen and 16.5 sen respectively, Datasonic’s warrant was up half-a-sen to 43.5 sen and Genting Malaysia gained four sen to RM3.11 while Ekovest was flat at 81 sen.
The FBM Ace added 24.44 points to 4,616.05, the FBM 70 down 20.95 points to 14,080.28, the FBM Emas Index lost 22.50 points to 11,294.98, the FBM Emas Shariah Index depreciated 38.53 points to 11,810.30 and the FBMT 100 Index slid 24.34 points to 11,132.06.
Sector-wise, the Financial Services Index was 7.58 points lower at 15,548.80, the Plantation Index discounted 44.48 points to 6,758.95, and the Industrial Products and Services Index inched down 0.23 of-a-point to 149.40.
The physical price of gold as at 9.30am stood at RM198.56 per gramme, up RM1.06 from RM197.50 at 5pm yesterday. — Bernama