Taiwan’s KMC Increases Revenue Thanks to Rising Bicycle Export
TAINAN, Taiwan – Rising e-bike and high-end bicycle sales in the first quarter of this year as reported by Taiwan’s largest bicycle makers Giant and Merida works out positively for the country’s parts and component suppliers. For example, chain maker KMC (Kuei Meng International Inc.) forecasts a significant increase in revenues for this quarter.
According to a company official, “KMC expects to generate an increase in turnover for this quarter between 5 to 8 percent to 43,5 million euro. Net profit declines by 15.4 percent to 7 million euro.”
Solid performance by bike makers
The main reason for this result as mentioned by the company spokesman in a Taipei Times report this week is “the performance by Giant, Merida and other bicycle makers remains solid”.
The shipments of chains for 12-speed models, both high-end for regular and electric bikes, began in January as major bicycle makers introduced 12-speed systems. Especially the contribution of e-bike chains is expected to increase this year, up from less than 10 percent of revenue last year.
AM is main growth driver
However, the main growth driver for KMC will the aftermarket. Particularly in Europe this market category has increased by 15 percent of the past three years.