Stock Listed Bike Companies Grew Bigger in 2016 But ‘China’ Left its Mark
MUNICH, Germany – Last year’s political turmoil couldn’t harm the global stock market. Good to know for this year as elections in France, the Netherlands and Germany as well as Brexit are coming and could lead to tears and fears. Globally the stock market upped by a big 10 percent in 2016. Also listed bike companies grew bigger. However, not all as in particular the deteriorating China market left its mark on Asian companies.
Especially the bicycle makers out of Taiwan (Giant, Ideal, Merida) saw their share rates drop in 2016. As they invested heavily in new facilities in China to cater for the in 2012, 2013, and 2014 booming sports bike market in China they met with the consequences of this strategy once sales got under big pressure as the economy in the country took a hit. Even Shimano was affected by it.
Not that much though as the world’s biggest in bicycle components saw its share value drop only by 1.7% over 2016. This is nothing compared to Giant (down 16.4%), Merida (minus 18.6%) and Ideal (24.9% drop). But one has to take into account that Taiwan’s Big Three as well as others from Asia listed in the Bike Industry Stock Chart saw their rates on the up and up earlier. One more remark on Shimano is that their drop in share rate is probably not only due to the situation in China, but also the fact that unit-wise bicycle production dropped in Europe in 2016.
2016 biggest share value increases were recorded by two bicycle producers from India; Atlas Cycles (+ 62.9%) and TI Cycles parent company TII (+ 36%) as well as US suspension expert Fox Factory (+ 61.8%). Four others, Araya, Dorel, HL, and Morita, reached also outstanding two-digit increases. The remaining four listed companies including Europe’s biggest Accell Group, saw only single digit share values increases over 2016.
The companies that saw the biggest share value drops were UK’s Tandem Group (minus 45.2%), Chinese bicycle producer Shanghai Phoenix (minus 43.1%) and South-Korean bicycle supplier Samchuly (minus 26.1%). This is apart for the already named Giant, Ideal, and Merida. Probably chain maker KMC was also affected by the severely deteriorating Chinese sports bike market as this company saw its share rate drop by 12% over 2016. The remaining four companies saw their share values decreases have been with single digits only over the period January 1, 2016 to December 31, 2016.
|Accell Group NV Amsterdam||EUR 21.91||+ 5.9||EUR 560.44 mn||EUR 16.80||EUR 23.66|
|Allegion PLC New York**||US$ 64.00||– 3.9||EUR 6.28 bn||US$ 52.95||US$ 73.49|
|Araya Ind. Co. Ltd. Osaka||JPY 159||+ 15.2||JPY 8.74 bn||JPY 118||JPY 165|
|Asahi Co. Ltd.
|JPY 1,286||– 0.2||JPY 33.93 bn||JPY 1,192||JPY 1,806|
|Atlas Cycles Ltd. Bombay||INR 355.05||+ 62.9||INR 1.10 bn||INR 161.00||INR 444.00|
|Dorel Ind. Inc. Quebec***||US$ 28.95||+ 29.5||CAD 1.30 bn||US$ 18.13||US$ 30.80|
|Fox Factory Corp. New York||US$ 27.75||+ 61.8||USD 1.00 bn||US$ 13.85||US$ 28.25|
|Giant Mfg Co Ltd. Taipei||TWD 183.00||– 16.4||TWD 68.07 bn||TWD 173.00||TWD 239.00|
|GBP 365.50||+ 9.2||GBP 719.15 mn||GBP 299.50||GBP 452.28|
|HL Corp. Shenzhen****||CNY 14.42||+ 20.5||CNY 4.83 bn||CNY 6.33||CNY 16.66|
|Ideal Bike Corp. Taipei||TWD 11.15||– 24.9||TWD 1.62 mn||TWD 10.35||TWD 15.90|
|Shanghai Phoenix Ent.Co.Ltd, Shanghai||US$ 1.10||+ 3.3||CNY 2.95 bn||US$ 0.78||US$ 1.17|
|KMC Int. Inc. Taipei||TWD 113.50||– 12.0||TWD 13.32bn||TWD 97.50||TWD 134.50|
|Lee Chi Ent. Co. Ltd. Taipei||TWD 10.40||– 7.6||TWD 2.36 bn||TWD 10.00||TWD 11.75|
|Merida Ind. Co. Ltd. Taipei||TWD 144.00||– 18.6||TWD 41.26 bn||TWD 116.00||TWD 178.00|
|Morita Holdings Corp. Tokyo||JPY 1,659||+ 26.1||JPY 71.16 bn||JPY 1,077||JPY 1,748|
|Samchuly Co. Ltd. Seoul||KRW 12,750||– 26.1||KRW 152.19 bn||KRW 11,550||KRW 23,250|
|Shimano Inc. Tokyo||JPY 18,340||– 1.7||JPY 1,724.28 bn||JPY 13,670||JPY 19,770|
|Sun Race Sturmey-Archer Inc. Taipei||TWD 14.80||+ 4.6||TWD 735.00 mn||TWD 11.70||TWD 17.55|
|Tandem Group PLC London||GBP 100.00||– 45.2||EUR 4.75 mn||GBP 90.84||GBP 205.00|
|Tube Investm. of India Ltd. Bombay||INR 582.85||+ 36.0||INR 106.68 bn||INR 352.00||INR 685.00|
|Zhonglu Co. Ltd. Shanghai*****||US$ 2.16||– 43.1||CNY 4.90 bn||US$ 1.78||US$ 3.85|
* Corporate Information & Bloomberg
** Ireland-based Ingersoll-Rand plc spin-off and listed at NYSE – therefore rates in US$
*** Candian Dorel rates in US$, company value in CAN
**** Taiwanese HL Corporation is listed at the Shenzhen stock market in China – therefore rates in CNY
***** Chinese Shanghai Phoenix Enterprise and Zhonglu rates in US$, company value in CNY