Register / Sign in

Share prices

22/07/2019

A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 19 July 2019. BDN financial editor Roger Willis reports.

Yet again, Donald Trump’s relentless and generally unresolved trade warfare put a damper on the spirit of global markets during the past week. Initially, this came from his admission that face-to-face talks with the Chinese were unlikely to resume in the near future, and negotiators weren’t getting past telephone conversations probably devoid of meaningful content.

Another influencer in the same vein was lower expectations for the quarterly corporate reporting season, which is just getting under way. Analysts expect the growing impact of US tariffs on domestic consumer demand to take the edge off the performance of many American companies, with a knock-on effect elsewhere. Certainly, all major market indices worldwide were negative on a weekly basis, although local factors were in play for a couple of instances.

In New York, both the S&P 500 and Dow Jones Industrial Average reflected this lack of traction, respectively sinking by 1.2% and 0.7%. Harley-Davidson, which is expected to suffer yet another home-turf bike sales decline, lost most of its recent gains with a sharp 4.9% retreat. Polaris dropped by 2.5%. Both are due to unveil half-yearly figures on 23 July. Textron released disappointing early results and was punished accordingly with an 8.3% plunge. Although the group’s ATV and snowmobile operations had held station, its bigger-ticket aircraft division confessed to orders for Cessna executive jets falling by a fifth.

A tentative mood also associated with imminent quarterly reporting pervaded the economic powerhouses of northern Europe too. Frankfurt’s Xetra Dax finished 0.5% down. Volkswagen, which will be the first big automotive to announce half-year numbers (including those of Ducati) next week, incurred a 1.6% loss. But BMW, which will enjoy relief from its own confession until the beginning of August, actually put on 0.7%. Austria’s KTM, which has just flagged a 7% bike sales increase across the first half of 2019 well in advance of its full results statement, rose by 2.9%.

Italian confidence crumbled for an entirely different reason, after an already fraught relationship between the two ruling populist parties in Italy’s coalition government descended into open conflict and a divisive general election suddenly loomed. The Borsa Italiana’s MIB index in Milan fell by 2.4% in response, as investors bolted for the exit. Biker stocks fared worse than that average, Piaggio and Energica respectively losing 3% and 5.2%.

Over on the other side of the developed world in Japan, anticipated evidence of pernicious trade-war woes ensured sombre sentiment from investors. Tokyo’s Nikkei 225 closed 1% lower. Among motorcycle manufacturers, only Kawasaki bested the index, retreating by 0.5%. Yamaha and Suzuki copped the largest losses, respectively of 3.9% and 3.3%. Honda was 1.4% down.

India’s fearsome summer drought continued to badly disrupt high-season vehicle and motorcycle sales. So, although Mumbai’s BSE Sensex 30 index declined by a relatively modest 1%, the escape from afflicted biker stocks by investors was far more extreme. Mahindra and TVS took the hardest hits, plummeting respectively by 9.6% and 8.5%. Market leader Hero MotoCorp plunged by 7.1%, Eicher by 6.8% and Bajaj by 6%.

Finally, Chinese investors were being remarkably sanguine about data showing their vast nation’s annual GDP growth has fallen to 6.2%, its lowest level for more than two decades. In part, this subdued reaction has been associated with parallel news about how little effect Trump’s tariff assault on China’s economy has actually had yet. In consequence, Shanghai’s benchmark SSE Composite index was negative by a mere 0.2%. However, sentiment relating to listed motorcycle producers proved weaker, averaging 1.4% in arrears. Three of the 10 did make gains, though. Zongshen, Jialing and Loncin respectively added 2.8%, 1.5% and 1%.                

   
Price (P) Daily change (C) 52-week range (R) One-year investment return (Y)  

USA (US dollar)

Harley-Davidson    P 34.85  C -2.49%  R 46.22 - 31.36  Y -12.82%
Polaris    P 84.26  C -1.52%  R 123.48 - 70.27  Y -28.94%
Textron    P 49.14  C +0.59%  R 72.87 - 43.27  Y -26.39%
Curtiss    P 0.27  C -0.54%  R 0.94 - 0.07  Y -33.5%

Notes: Polaris makes Indian bikes, ATVs, snowmobiles, quadricycles and EVs. Textron produces own-brand ATVs. Curtiss Motorcycles, formerly Confederate Motors, makes limited-edition cruisers.

CANADA (Canadian dollar)

BRP    P 44.83  C -4.8%  R 74.78 - 32.34  Y -27.93%

Notes: Bombardier Recreational Products makes Can-Am ATVs and road trikes, Ski-Doo snowmobiles, Sea-Doo PWC and Rotax proprietary engines.

TAIWAN (Taiwanese dollar)

SYM    P 21.50  C -4.66%  R 23.50 - 19.35  Y +8.71%

Notes: Sanyang Motor (SYM) is the leading Taiwanese bike manufacturer.

VIETNAM (Hong Kong dollar)

VMEPH    0.27  C N/A  R 0.40 - 0.21  Y -33.75%

Notes: Vietnam Manufacturing & Export Processing Holdings, a JV partner of SYM, is the third-largest Vietnamese bike manufacturer.

INDONESIA (rupiah)

Astra    P 7100  C -0.7%  R 8775 - 6575  Y +9.07%
Indomobil    P 2560  C +1.59%  R 3570 - 1550  Y -14.5%

Notes: Astra International is a Honda JV partner. Its controlling shareholder is British conglomerate Jardine Matheson. Indomobil Sukses Internasional is a Suzuki JV partner.

EUROPE (euro)

BMW    P 66.23  C +0.27%  R 86.74 - 61.14  Y -11.73%
VW    P 152.65  C -0.2%  R 167.40 - 128.60  Y +10.92%
KTM    P 53.00  C +1.92%  R 70.00 - 50.50  Y -19%
Piaggio    P 2.63  C -0.08%  R 2.78 - 1.69  Y +19.72%
Energica    P 2.37  C -4.44%  R 4.50 - 2.15  Y -43.3%

Notes:  Volkswagen Group owns Ducati. Energica Motor is an Italian manufacturer of electric superbikes

PAKISTAN (Pakistani rupee)

Atlas Honda    P 315.00  C -1.56%  R 395.00 - 262.50  Y -13.9%
Pak Suzuki    P 198.35  C -5%  R 365.00 - 170.00  Y -45.34%

Notes: Atlas Honda and Pak Suzuki are JV assembly partners.

INDIA (rupee)

Hero    P 2387.40  C -3.71%  R 3510.00 - 2360.00  Y -28.62%
Bajaj    P 2558.25  C -2.76%  R 3153.80 - 2420.00  Y -16.06%
TVS    P 396.20  C -4.36%  R 604.70 - 392.10  Y -29.16%  
Eicher    P 17,664.00  C -4.03%  R 29,800.00 - 17,500.00  Y -34.26%
Mahindra    P 571.30  C -4.37%  R 993.00 - 570.00  Y -36.54%  
Maharashtra    P 4021.60  C -3.87%  R 4786.00 - 2010.00  Y +41.87%
Scooters India    P 26.00  C -1.33%  R 42.90 - 23.75  Y -36.89%

Notes: Hero MotoCorp is India’s largest indigenous bike manufacturer. Bajaj has a major shareholding in KTM and contractual manufacturing ties with it. TVS is a former Suzuki JV partner and BMW Motorrad contractor. Eicher makes the Royal Enfield brand. Mahindra & Mahindra has an own-brand bike range, a majority stake in French scooter brand Peugeot and owns formerly British BSA and Czech Jawa brand rights. Maharashtra Scooters assembles CKD scooter kits manufactured by Bajaj. Scooters India makes Vikram three-wheeled taxis and light trucks.

JAPAN (yen)

Honda    P 2808  C +2.05%  R 3519 - 2610  Y -12.26%
Yamaha    P 1902  C +3.82%  R 3215 - 1812  Y -34.71%
Suzuki    P 4400  C +0.76%  R 7680 - 4296  Y -33.16%
Kawasaki    P 2520  C +1.69%  R 3395 - 2198  Y -21.47%

CHINA (yuan)

Qianjiang    P 10.00  C +0.1%  R 12.38 - 7.50  Y -8.09%
Zongshen    P 5.94  C +1.02%  R 10.57 - 4.08  Y +33.32%   
Sundiro    P 2.42  C +1.6%  R 4.44 - 1.74  Y -35.81%
Jialing    P 6.73  C -4.67%  R 8.12 - 3.52  Y +55.79%
Lifan    P 3.81  C +0.79%  R 9.65 - 3.65  Y -23.19%
Loncin    P 4.03  C +1.26%  R 5.83 - 3.61  Y -23.84%
Linhai    P 7.40  C +0.41%  R 10.26 - 4.90  Y +17.27%
GAG    P 11.03  C +0.18%  R 15.00 - 10.00  Y +10.76%
CFMoto    P 21.01  C +3.86%  R 25.75 - 14.01  Y +14.3%

CHINA (Hong Kong dollar)

Jianshe    P 5.50  C -0.36%  R 8.96 - 5.49  Y -5.01%

Notes: Qianjiang owns the Keeway and Benelli brands and is a contract manufacturer for Harley-Davidson. Zongshen makes own-brand bikes and proprietary engines, including a 650cc motor licensed from Norton, and has JV partnerships with Piaggio, (scooters), and Harley-Davidson (parts). Sundiro is a Honda JV partner. Jialing makes own-brand bikes using Honda licensed technology. Lifan makes own-brand bikes and distributes MV Agusta in China. Loncin is a Kawasaki JV partner and OEM engine contractor to BMW Motorrad. Linhai and Jianshe are Yamaha JV partners. Guangzhou Automobile Group (GAG) is the parent of Honda JV partner and own-brand bike manufacturer Wuyang. CFMoto makes bikes and ATVs, exporting to the UK under the WK Bikes brand, and has a JV partnership with KTM.

MALAYSIA (ringgit)

Oriental Holdings    P 6.56  C -0.15%  R 6.67 - 5.65  Y +15.26%
Hong Leong    P 11.38  C N/A  R 11.69 - 8.34  Y +6.34%

Notes: Oriental Holdings is a Honda JV partner. Hong Leong Industries is a Yamaha JV partner.

SOUTH KOREA (won)

KR    P 500  C +1.21%  R 665 - 460  Y -17.9%
Daelim    P 106,000  C +3.92%  R 122,500 - 72,600  Y +47.6%

Notes: KR Motors makes Hyosung bikes and ATVs. Daelim Industrial retains a controlling 59% stake in Daelim Motor, the largest bike manufacturer in Korea. (The remainder is British, owned by Standard Chartered Bank.)