|Bid||5.42 x 0|
|Ask||5.43 x 0|
|Day's range||5.21 - 5.51|
|52-week range||3.35 - 5.85|
|Beta (5Y monthly)||1.01|
|PE ratio (TTM)||88.69|
|Earnings date||30 Oct 2020|
|Forward dividend & yield||0.02 (0.38%)|
|Ex-dividend date||06 Jul 2020|
|1y target est||3.25|
(Bloomberg) -- China is set to pass a new law that would restrict sensitive exports vital to national security, expanding its toolkit of policy options as competition grows with the U.S. over access to technologies that will drive the modern economy.China’s top legislative body, the National People’s Congress Standing Committee, is expected to adopt the measure in a session that concludes on Saturday. The Export Control Law primarily aims to protect China’s national security by regulating the export of sensitive materials and technologies that appear on a control list. It would apply to all companies in China, including foreign-invested ones.The measure would add to Beijing’s regulatory arsenal, which also includes a tech export restriction catalog and an unreliable entity list. The law would also help put China on a similar footing to the U.S., which regularly uses export controls and licenses strategically against its adversaries.Mounting tensions between China and the U.S. have spilled over into the realm of technology. Big Chinese companies including Huawei Technologies Co., ByteDance Ltd.’s TikTok, Tencent Holdings Ltd.’s WeChat and Semiconductor Manufacturing International Corp. find themselves in Washington’s cross-hairs.“Chinese authorities may have learned a lesson from the U.S. and other countries,” said Qing Ren, a partner at Global Law Office in Beijing.A report carried by official Xinhua News Agency said the draft law stipulates that China could take reciprocal measures against a certain country or region that has “abused export control measures and damaged China’s national security and interests.”The official Legal Daily reported on Thursday that some legislators had suggested source codes, algorithms and technical documents be added as controlled items, and that China should set up some restrictions on exporting technologies on which Beijing has a competitive edge, such as 5G and quantum communications.Whether Beijing will allow the export of valuable Chinese technology is one of the biggest uncertainties hovering over the partial sale of TikTok to Oracle Corp. and American investors. China in August asserted the right to block the deal by adding speech recognition and recommendation technology -- the core of TikTok’s global popularity -- to a list of regulated exports.How Blacklisting ‘Entities’ Became a Trade War Weapon: QuickTakeThe existing control lists are much narrower than the one used by the U.S., staying limited to materials that could be used for nuclear, chemical or biological weapons, Ren said. If it’s expanded in the future “then more products or technologies will be subject to export control in China,” he said.The Chinese Ministry of Commerce partially updated its export control list in August, putting cutting-edge technologies such as recommendation algorithms and drones under Beijing’s watch.While the U.S. is generally ahead of China in most spheres, China controls critical aspects of technology in industries from wireless networking to unmanned aerial vehicles.Tech HeadwayAmerican officials have warned that Huawei -- the leader in next-generation wireless patents -- controls a 10th of worldwide essential 5G patents, and its deep involvement in international standards-setting could post a threat to U.S. national security. The company ranked among the top 10 recipients of U.S. patents in 2019 -- helping China become the fourth-biggest recipient of American patents, behind Japan and South Korea but ahead of Germany for the first time.Chinese companies have also made headway in dominating certain niches. Shenzhen-based SZ DJI Technology Co. controls something like three-quarters of the global consumer drones market. Display maker BOE Technology Group is aggressively filing patents in its bid to get into next-generation OLED screens for smartphones.And in artificial intelligence, companies from Alibaba Group Holding Ltd. to Tencent and upstarts like SenseTime Group Ltd. are taking advantage of unparalleled reserves of data to advance in areas such as facial recognition.How Huawei Landed at the Center of Global Tech Tussle: QuickTakeWhen approved, China’s law will be applied extra-territorially, taking a page from the U.S. Export Administration Regulations’ long-arm jurisdiction that Beijing has frequently criticized. Foreign Ministry officials have repeatedly accused Washington of stretching and abusing the concept of national security in justifying actions against Chinese companies.China is the biggest exporting country in the world and overseas sales provide jobs for millions of people, so it will be careful not to abuse the law, said Mei Xinyu, a researcher at a research group under China’s Commerce Ministry. “We highly value China’s image as a reliable supplier in the international market,” Mei said. “So we wouldn’t expand the scope of export control at will.”China’s Ministry of Commerce first published a draft of the legislation in June 2017. It went through two reviews by the NPC in December 2019 and at the end of June. When the draft bill was introduced for its first review, Minister of Commerce Zhong Shan explained to the national legislature that export control is a mechanism aimed at “honoring international obligations such as nonproliferation and safeguarding national security and developmental interests.”But in a draft reviewed in June, national security was given higher priority.“Threats to national security could come from various fields, including the economic field,” said Cui Fan, a professor of international trade at the University of International Business and Economics. “But we can’t confuse normal competition between companies with threats to economic security and national interests.”Why Trump Is Threatening Your Teen’s Favorite App: QuickTakeThe latest version further clarifies the scope of controlled items and punishment measures for violations. Government departments overseeing export control should publish export control guidance in a timely manner, a spokesperson of the NPC’s legislative affairs commission said on Monday, without elaborating.Foreign companies need not fear the law since it applied equally to all companies operating in China, according to Ren from Global Law Office. Still, he said, foreign-invested companies should be careful if their activities involve the export of technologies.“Chinese employees maybe are not allowed to release the controlled technologies to their foreign colleagues,” Ren said. “This depends on the very specific circumstances of the each individual company. But it could happen.”(Updates with more detail on current control list in tenth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Chinese flexible display maker Royole Corp. is weighing an initial public offering in China while its planned U.S. listing is put on hold, according to people familiar with the matter.Royole had filed confidentially for a U.S. IPO that could raise about $1 billion, Bloomberg News reported earlier this year. However, the startup is now considering a listing in China, the people said, asking not to be identified as the information is private.Considerations are at an early stage and no final decisions have been made, the people said. A representative for Royole declined to comment on the matter.Royole, known for manufacturing the world’s first commercial foldable phone, had originally planned to raise funds via a private financing round at a valuation of about $8 billion, people familiar with that deal said last year. But the Chinese company turned to the U.S. markets after liquidity tightened during a downturn in China’s venture capital sector, the people said.Since January relations between the U.S. and China have deteriorated sharply, with tensions spanning trade, technology and Hong Kong. Many U.S.-listed Chinese companies are considering second listings closer to home in Hong Kong, while China has been actively seeking to lure innovative technology companies to list in Shanghai and Shenzhen.Royole competes with Samsung Electronics Co. and BOE Technology Group Co. to produce bendable screens using cutting-edge organic light-emitting diode technology. The company, which gave away wraparound-screen hats at the 2018 World Cup in Russia, in January unveiled a smart speaker that packs a bendable display around a cylinder.Its full line of products encompasses head-mounted displays intended for use as so-called mobile theaters and other wearable flexible displays. The company even has a smart writing pad that it sells on Amazon.com, JD.com and in stores globally.Royole’s earlier investors include Knight Capital, IDG Capital, Poly Capital Management, AMTD Group, the funds of Chinese tycoon Xie Zhikun and the venture capital arm of the Shenzhen city government.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Samsung Electronics Co. reported a 38% decline in profit due to falling memory chip prices, a warning sign for the global technology industry as it navigates trade tensions and the coronavirus outbreak.Net income tumbled to 5.23 trillion won ($4.4 billion) for the three months ended December, compared with the 5.31 trillion won average of projections. The miss is a surprise because Samsung carefully orchestrates earnings, including reporting preliminary numbers a few weeks before final results. The early numbers this month beat analyst estimates.Samsung has been struggling with a stubborn slump in the memory chip business, historically its most profitable division, and said the weakness may affect first quarter results. The company also flagged soft demand in the display business for some premium mobile screens and a bigger loss on large displays because of sliding LCD prices.“There are too many factors that need to be considered to conclude that we have entered into a definite demand upcycle,” said Jinman Han, senior vice president of the semiconductor business at Samsung, highlighting macroeconomic and geopolitical uncertainties that may have a negative impact in the future.The coronavirus that began in China has closed stores and factories in the country, the manufacturing base for much of the tech industry. Several companies, including Apple Inc., have said they are uncertain how the outbreak will affect them.Samsung shares fell 3.2% in Seoul. They had increased 5.9% this year through Wednesday, after rising about 44% in 2019. Operating profit was 7.16 trillion won on sales of 59.9 trillion won, the company said, in line with preliminary numbers released earlier this month.Apple, a rival and customer, reported strong earnings this week, sending shares to a record in U.S. trading. A surge in iPhone sales pushed the Cupertino, Calif.-based company into an approximate tie with Samsung for smartphone shipments in the fourth quarter, according to market researchers.Earlier this month, chip giants Taiwan Semiconductor Manufacturing Co. and Intel Corp. provided bullish outlooks for 2020, driven by demand for cloud-computing centers and fifth-generation smartphones.Samsung, SK Hynix Inc. and Micron Technology Inc. together control more than 90% of the market for dynamic random access memory, or DRAM, chips, used in everything from data servers to smartphones. Spot prices of DRAM and NAND started increasing in December after getting hammered for a year amid rising trade tensions between the U.S. and China as well as plateauing smartphone sales.The chip industry has been anticipating a recovery as the roll-out of fifth-generation wireless technology spurs higher demand for memory and greater speeds to process data. Samsung did say there are signs of recovering demand from data center customers and wireless operators.Contract prices for 32-gigabyte DRAM server modules fell about 5.9% in the December quarter, narrower than the 14% slide of the September quarter, according to InSpectrum Tech Inc. Prices for 128-Gb MLC NAND flash memory chips held steady in the final three months of 2019.“Memory-chip suppliers still have a high level of inventories,” said Lee Joo-wan, research fellow at Hana Institute of Finance. “As the first half of the year is off-season, it may take time for recovering prices to be reflected in the performance of suppliers.”Samsung’s smartphone division had a stronger quarter, posting 2.52 trillion won in operating income, up from 1.51 trillion won a year earlier. Although the total shipments of smartphones slightly decreased, high-end devices such as the Galaxy Note 10 and Galaxy Fold boosted profits in the fourth quarter.The average selling price of Samsung handsets and tablets was $216 in 4Q, which the company forecasts will increase this quarter as it launches new flagship and premium models. Samsung’s new clamshell-type foldable phone, which will be unveiled Feb. 11, is expected to further fuel growth, said Greg Roh, senior vice president at HMC Securities.Samsung’s operating profit from its display business was about 220 billion won, down from about 970 billion won a year earlier. The company is investing heavily in flexible organic light-emitting diode panels, upgrading its technology to ward off rising competition from Chinese suppliers such as BOE Technology Group Co.The consumer electronics unit, which includes TVs and appliances, had operating profit of about 810 billion won.(Updates with closing share price in sixth paragraph)To contact the reporter on this story: Sohee Kim in Seoul at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Peter Elstrom, Vlad SavovFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.