Skip to main content

Featured Post

Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
Post a Comment

China Helps Italy's Brembo to Defy Auto Industry Weakness

Italian premium brake maker Brembo has posted moderate gains in first-half core earnings and revenue, thanks to strong performance in its Asian markets and robust business from maintaining older vehicles. This has helped counter a generally weak outlook for the automotive sector.

Resilience Amidst Industry Contraction

The automotive market faced a contraction in the first part of the year, with several major automakers, including Stellantis, Porsche, and Mercedes, reporting lower earnings. The recovery remains uncertain for the months ahead.

"The market is really struggling, including in its premium segment," said Executive Chairman Matteo Tiraboschi in a post-earnings interview with Reuters. "With this background, increasing revenue and preserving profitability was an achievement."

Financial Highlights

  • EBITDA Growth: Brembo's earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 2.1% to €351.4 million ($381 million) for the six months ending June 30.
  • Revenue Increase: Revenue rose by 2.8%, surpassing €2 billion for the first time, driven by a 7.2% growth in China and a 21.1% growth in India.
  • EBITDA Margin: The EBITDA margin remained stable at 17.5%, compared to 17.6% a year earlier.

Regional Performance

"Asia is a key area for us, with prolonged growth, mainly with China but not only with China," Tiraboschi said. "India is very important too, especially for the motorbike segment."

Aftermarket Business

The aftermarket business also supported Brembo's results. "Car sales going down mean fewer people changing their cars and more of them doing maintenance," Tiraboschi explained. "So the aftermarket is bringing benefits."

Clientele and Future Outlook

Brembo's clients include prominent automakers such as Tesla, BMW, and Chinese EV giant BYD. The Bergamo-based group has reiterated its full-year forecasts for moderate revenue growth and stable margins.

Market Reaction

Brembo's shares rose 3.8% by 1515 GMT, reversing earlier losses, reflecting investor confidence in the company's performance and outlook.

Labels:

Comments

Post a Comment

Popular posts from this blog

INTC Share Watch and News

Stock Info Market Monitor Company Profile Intel Corporation designs, manufactures, and sells integrated circuits for computing and communications industries worldwide. It offers microprocessor products used in notebooks, netbooks, desktops, servers, workstations, storage products, embedded applications, communications products, consumer electronics devices, and handhelds. The company also offers system on chip products that integrate its core processing functionalities with other system components, such as graphics, audio, and video, onto a single chip. It also provides chipset products that send data between the microprocessor and input, display, and storage devices, such as keyboard, mouse, monitor, hard drive, and CD or DVD drives; motherboards that has connectors for attaching devices to the bus, and products designed for desktop, server, and workstation platforms; and wired and wireless connectivity products, including network adapters and embedded wireless cards used to translat
1 comment
Read more

Analysts See Asset Resilience of Bank of Chengdu Benefiting Hong Leong Bank

Analysts predict that the asset quality of Bank of Chengdu, in which Hong Leong Bank Bhd holds a 19.76% stake, will remain robust due to its strict risk management policies and proactive measures. Key Takeaways: Strong Risk Management Practices : According to CIMB, Bank of Chengdu has adopted a conservative risk culture, performing thorough assessments of location, developer reputation, project viability, and management integrity before financing property projects. The bank closely monitors early warning signals like construction progress, sales progress, budget overruns, and fund usage by developers to mitigate potential risks. Proactive Measures Against Property Slowdown : The bank's precautionary measures allowed it to reduce exposure to problematic property loans and exit risky loans before China's property market slowdown. This conservative approach is expected to benefit Hong Leong Bank by minimizing potential asset quality concerns. Continued Optimism and Buy Recommendat
Post a Comment
Read more

Investors Keep Buying US Junk Debt Despite Weak Protections

  When US-based construction material supplier Wilsonart issued a junk bond to raise US$500 million (RM2.13 billion) for an acquisition this summer, a research firm warned potential investors about the bond's weak protections. The bond’s covenants could allow the company to move valuable assets to another entity and raise more money, potentially disadvantaging bond investors, according to Covenant Review , a research firm. This warning comes amid growing concerns in credit markets as more companies engage in practices like "liability management exercises," where they borrow more against the same assets. These practices, often favoring some creditors over others, have been dubbed "creditor-on-creditor violence," prompting some creditors to unite to protect their interests. Despite the warnings, investors eagerly purchased Wilsonart's offering, underscoring a paradox in US credit markets. While investors face the consequences of weak covenants, they continu
Post a Comment
Read more