Xiaomi Continues to Move Higher After Posting 1Q Result
Medion Jim May 21, 2020 10:25 AM
Xiaomi (1810), a Chinese electronics company, announced that 1Q adjusted net income rose 10.6% on year.......
Xiaomi (1810), a Chinese electronics company, announced that 1Q adjusted net income rose 10.6% on year to 2.30 billion yuan while operating profit declined 35.7% to 2.32 billion yuan on revenue of 49.70 billion yuan, up 13.6%. The company added: "We successfully navigated the market downturn and were able to achieve the highest year-over-year growth in shipments among the top five smartphone companies worldwide, according to Canalys. (...) According to Canalys, our smartphone shipments in Western Europe increased by 79.3% year-over-year and we attained the largest market share in Spain for the first time."
Recently, HSI Company announced that WVRs listed in Hong Kong, including BABA-SW (9988), Meituan (3690) and Xiaomi (1810), are eligible for inclusion into the Hang Seng Index. Investment Bank Morgan Stanley estimated that Xaiomi would have a passive inflow of US$500 million.
From a technical point of view, the stock brok above the declining trend line drawn from January top before announcing the 1Q result on a daily chart. Currently, the prices stand above the 61.8% retracement level, indicating the potential of challenging the previous top at HK$14.00. In addition, the bullish cross between 20-day and 50-day moving averages has been identified.
Therefore, bullish readers could consider to set the support level at HK$11.50, below the day low of May 18. The resistance level would be located at HK$14.00 (the January top) and HK$15.30 (127.2% retracement level).
Sources: GAIN Capital, TradingView
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.