KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Xiaomi Corp reported a stronger-than-expected revenue increase for the second quarter of 2024, driven by impressive growth in both its smartphone and newly launched auto business segments. For the quarter ending in June, the company’s revenue surged 32% year-on-year to 88.9 billion yuan, surpassing analysts' expectations of 85.8 billion yuan, according to data from LSEG.
Key Takeaways:
Strong Entry into the EV Market: Xiaomi’s strategic diversification into the electric vehicle (EV) market has begun to pay off. The company reported 6.2 billion yuan in revenue from its auto business, which was included in its financial report for the first time. Xiaomi’s SU7 electric vehicles, launched in April 2024, saw a solid delivery of 27,307 units in the second quarter, marking a strong debut against established competitors like Tesla.
Smartphone Market Recovery: Xiaomi's core smartphone business also showed signs of robust recovery, with global shipments rising by 27.4% to 42.3 million units in Q2, securing a 14.8% global market share and placing Xiaomi as the third-largest smartphone vendor. In China, its largest market, Xiaomi saw a 16.5% increase in shipments, indicating a significant rebound in demand after a period of sluggish market conditions.
Profitability Challenges in the Auto Unit: Despite the promising revenue contribution from its EV segment, Xiaomi’s auto business is still facing profitability challenges. The unit reported an adjusted loss of 1.8 billion yuan, with a gross profit margin of 15.4%. However, Xiaomi’s president Lu Weibing expressed confidence that profitability will improve as production and deliveries scale up, targeting 120,000 vehicle deliveries by the end of the year.
In summary, Xiaomi’s second-quarter results highlight the company’s successful expansion into the EV market while maintaining strong growth in its smartphone business. However, the path to profitability for its auto unit remains a key area to watch as the company continues to scale its operations.
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