KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Xiaomi Corp posted a 31% revenue increase in the latest quarter, beating expectations as demand for its new electric vehicles (EVs) offset weakness in smartphone sales.
Earnings Highlights
Revenue: 116 billion yuan (US$16.2 billion), above estimates of 115 billion yuan.
Net income: Nearly doubled to 11.9 billion yuan.
EV sales: Delivered 81,302 cars in Q2, bringing H1 deliveries to 157,000+ — already close to topping 2024’s total.
EVs Drive Growth
The YU7 SUV, launched in June, has been a blockbuster hit, with wait times stretching over a year.
Founder Lei Jun expects the car division to turn profitable in H2 2025.
Xiaomi has invested US$10 billion into EVs, aiming to crack the global top five alongside Tesla and BYD.
Despite a fatal accident in March involving the SU7 sedan, strong consumer demand has helped Xiaomi avoid getting dragged into China’s EV price war.
Market Performance
Xiaomi has added US$120 billion in market value over the past year thanks to its EV momentum.
Shares are now trading at higher valuations than BYD and Samsung Electronics, raising questions on sustainability.
Other Business Segments
IoT (Internet of Things): Estimated 30–40% growth, boosted by white goods and subsidies.
Smartphones: Slower mid-single-digit growth as discounts during June’s shopping festival pressured margins.
Gross margin: Expanded YoY to 22.5%, driven by EV scale and IoT mix, though slightly lower than Q1 due to promotions and rising costs.
Chips & AI: Xiaomi unveiled its Xring O1 chip (3nm) and plans to invest US$7 billion in semiconductors this decade.
What It Means for Investors
Upside drivers: EV momentum, IoT expansion, and entry into semiconductors give Xiaomi multiple growth engines.
Risks: Sluggish smartphone demand, margin pressure from promotions, and competition in EVs from Tesla and BYD.
Valuation check: The stock is priced at a premium, already above major rivals — leaving less room for error.
Bottom Line: Xiaomi’s bold bet on EVs is paying off, fueling strong growth and a soaring stock price. But with valuations stretched and smartphones still weak, investors need to weigh whether the rally can continue without hiccups.
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