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Share prices

24/09/2018

A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 21 September 2018. BDN financial editor Roger Willis reports.

Further moves in the US-China trade war are clearly losing any ability to shock or intimidate markets. The latest wide-ranging $189bn batch of tariffs imposed by Washington on imports from China in the past week were far less punitive than anticipated. And immediate Chinese retaliatory measures against American goods were remarkably restrained too. Wall Street stock analysts made little attempt to stifle their yawns of trade-war fatigue, instead pointing to investment cues from the currently very robust US economy. So share prices rallied in a week-long surge of upbeat sentiment that spread right around the world.

In New York, the Dow Jones Industrial Average rose by 2.3% week-on-week, briefly touching record highs along the way. (The S&P 500 index didn’t finish well, though. But more of that later.) Harley-Davidson profited from this positive mood, stacking on 2.4%. Textron added 1.8% while Polaris missed the boat, losing 2%.

Europe jumped on America’s bandwagon with gusto. Its pan-Eurozone Eurofirst 300 index grew by 1.8%, easily outpaced by the Xetra DAX in Frankfurt with a 3.1% rise. Volkswagen, driven by the popularity of an impeding IPO hiving off the group’s truck division, leapt by a muscular 8.5% and BMW boasted a 4% hike. However, KTM shares were static on thin trading activity in Austria. Further south, Milan’s MIB index closed 3.4% up and Piaggio made a healthy 3% gain.

The Japanese were particularly ecstatic about temporarily receding trade-warfare concerns. Tokyo’s Nikkei 225 climbed by 3.6% and was still blown into the weeds by most indigenous motorcycle manufacturers. Kawasaki was leader of this pack, racing ahead by 9%. Yamaha and Honda weren’t far behind, respectively clocking 8.7% and 8.5%. Suzuki managed a more modest 3% advance.

Such global expressions of bonhomie even stretched to China, where Shanghai’s SSE Composite topped the indices league thanks to an impressive 4.7% recovery. The majority of listed Chinese bike producers were beneficiaries. Qianjiang, Loncin, Linhai and Jianshe all bounced back by more than 3%. Zongshen, Lifan and Guangzhou Auto were above 2%. Sundiro and CFMoto were more marginally positive. Jianshe and Jialing both incurred losses.

Returning to New York on Friday afternoon, when Wall Street was the only major financial centre still in business and all those in time zones to the east had long since shut for the weekend, fertiliser hit the fan again. News emerged that China had unilaterally cancelled all trade talks with the US until after America’s crucial mid-term elections in November — when Trump’s Republican cohorts may lose control of the US House of Representatives and possibly the Senate. A knee-jerk reaction in the final few hours of trading wiped smiles off investor faces and the S&P 500 index lost much of its weekly advance, closing just 0.8% up. Hardest hit were blue-chip tech stocks like Apple with dependence on China, so the Dow Jones was relatively unaffected.

India, meanwhile, was languishing in a private pit of gloom, isolated from the US-China axis. Continuing currency depreciation has now pushed the rupee down to its lowest level ever against the US dollar, leaving the Indian government and many business enterprises struggling to meet international payment obligations. Unsurprisingly, the Bombay Stock Exchange’s Sensex 30 sank by 2.2% and shares in the majority of bike manufacturers fell. Biggest major loser was Eicher, 4.9% down. Hero and Bajaj were also negative. TVS escaped with a 1.2% gain. Mahindra also bucked the losing trend but its PTW operations weren’t responsible. The company has just acquired glamorous Italian sports car designer Pininfarina.   

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

USA (US dollar)

Harley-Davidson    P 45.35  C -0.2%  R 56.50 - 39.34  Y -2.92%
Polaris    P 106.85  C -0.6%  R 137.66 - 101.06  Y +1.59%
Textron    P 71.82  C +1.46%  R 72.76 - 51.07  Y +35.45%
US Highland    P 0.0007  +16.67%  R 0.0107 - 0.0004  Y -12.5%
Curtiss    P 0.50  C N/A  R 1.50 - 0.20  Y +66.67%

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

CANADA (Canadian dollar)

BRP    P 60.65  C +0.76%  R 74.78 - 38.94  Y +36.96%

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

TAIWAN (Taiwanese dollar)

Sanyang    P 20.75  C +0.97%  R 23.65 - 20.00  Y -2.22%

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

VIETNAM (Hong Kong dollar)

VMEPH    0.36  C N/A  R 0.48 - 0.36  Y -20.65%

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

INDONESIA (rupiah)

Astra    P 7250  C -3.33%  R 8750 - 6100  Y -5.04%
Indomobil    P 1970  C -2.48%  R 4780 - 815  Y +120.56%

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 85.73  C +0.42%  R 97.50 - 76.50  Y +5.28%
VW    P 152.50  C +1.06%  R 191.80 - 132.40  Y +8.23%
KTM    P 69.00  C N/A  R 70.00 - 48.31  Y +41.82%
Piaggio    P 2.08  C -0.57%  R 2.86 - 1.84  Y -18.19%
Energica    P 4.07  C +0.25%  R 5.92 - 2.71  Y +31.8%

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

PAKISTAN (Pakistani rupee)

Atlas Honda    P 436.00  C -2.24%  R 640.00 - 412.01  Y -19.26%
Pak Suzuki    P 303.38  C +5%  R 578.24 - 252.00  Y -30.26%

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

INDIA (rupee)

Hero    P 3175.20  C +0.67%  R 3904.70 - 3020.00  Y -16.3%
Bajaj    P 2799.20  C +0.33%  R 3472.60 - 2604.00  Y -7.24%
TVS    P 593.40  C -0.96%  R 794.90 - 507.00  Y -8.34%  
Eicher    P 27,940.20  C -1.66%  R 32,766.60 - 26,000.00  Y -11.85%
Mahindra    P 959.90  C +1.16%  R 993.00 - 612.00  Y +49.87%  
Maharashtra    P 2648.20  C -6.27%  R 3399.40 - 2103.55  Y -3.72%
Scooters India    P 38.10  C +4.67%  R 79.70 - 32.70  Y -18.94%

Notes: Hero MotoCorp is a former Honda JV partner. Bajaj has a major shareholding in KTM and ties with it and Kawasaki. 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 3491  C +2.14%  R 4151 - 3107  Y +7.91%
Yamaha    P 3060  C +3.94%  R 3935 - 2676  Y -5.5%
Suzuki    P 7106  C +0.91%  R 7680 - 5444  Y +17.01%
Kawasaki    P 3275  C +2.02%  R 4620 - 2890  Y -9.97%

CHINA (yuan)

Qianjiang    P 9.18  C +1.21%  R 23.99 - 8.44  Y -48.43%
Zongshen    P 4.78  C +0.63%  R 7.78 - 4.46  Y -35.45%   
Sundiro    P 3.32  C -0.9%  R 7.62 - 3.05  Y -54.52%
Jialing    P 4.90  C -0.2%  R 6.75 - 4.23  Y -25.19%
Lifan    P 4.70  C +1.51%  R 9.44 - 4.50  Y -48.35%
Loncin    P 5.06  C +1%  R 8.45 - 4.75  Y -35.31%
Linhai    P 6.79  C N/A  R 12.44 - 5.96  Y -44.21%
GAG    P 10.69  C +4.29%  R 21.44 - 10.00  Y -42.07%
CFMoto    P 16.99  C +3.6%  R 38.95 - 15.18  Y -53.65%

CHINA (Hong Kong dollar)

Jianshe    P 7.33  C -1.48%  R 11.05 - 5.30  Y -32.38%

Notes: Qianjiang owns Keeway and Benelli. Zongshen makes own-brand bikes and proprietary engines, 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.

MALAYSIA (ringgit)

Oriental Holdings    P 6.20  C +0.16%  R 6.55 - 5.87  Y -0.41%
Hong Leong    P 10.96  C +4.18%  R 12.30 - 9.00  Y +20.16%

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

SOUTH KOREA (won)

KR    P 562  C +1.08%  R 871.5 - 475.5  Y -30.87%
Daelim    P 82,000  C +0.37%  R 93,300 - 70,000  Y +2.24%

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.)