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Share prices

01/10/2018

A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 28 September 2018. BDN financial editor Roger Willis reports.

India’s ongoing currency depreciation crisis got steadily nastier in the past week. Hastily-introduced tariff increases to discourage non-essential imports had no immediate impact on rupee weakness. And business confidence was dealt a further blow by news that many big companies are now struggling to service extensive dollar-denominated corporate borrowing, with some reportedly on the brink of default and therefore insolvency.

Unsurprisingly, nervous investors have been selling off suspect equities, pushing both major Indian stock market indices remorselessly lower. The BSE Sensex 30 fell by 1.2% and the Nifty 50 dropped by 1.6%. Motorcycle industry share prices, already hammered over the previous fortnight, received an even more brutal beating. Most painfully afflicted was Royal Enfield parent Eicher, plummeting by 13.4%. Mahindra lost 10.3% and Hero MotoCorp was 7.6% down. Retreats of 5.6% for TVS and 4% for Bajaj seemed almost minor by comparison. The fact that they both enjoy substantial export revenue streams from machines manufactured respectively for BMW Motorrad and KTM could have had a bearing.

Negative pressures affecting sentiment in Europe were two-fold. In the first instance, BMW issued a full-year profit warning on the basis of havoc wreaked on its global business by US trade warfare versus all and sundry. That wiped a significant 9.6% off BMW’s capitalisation. Although Frankfurt’s Xetra DAX sank by only 1.1%, analysts factored in anticipation of similar confessions from other European automotives, so Volkswagen and KTM were among those sliding backwards, respectively by 2.1% and 2.6%.

Further south, Italy’s new populist government stuck its middle finger up to fiscal prudence by announcing lavish public-spending increases based on a deliberate 2.4% budget deficit, blatantly breaching EU guidelines. This move provoked an asset-dumping frenzy in Italian equities and bond markets. In Milan, the Borsa Italiana’s MIB index plunged by 3.7% on Friday and closed 3.4% down for the week as a whole. Piaggio shares dived further, falling by 5.3%.

In America, US-China trade tensions detuned activity for much of the week, until a slight rally based on a Federal Reserve assurance that gradual interest-rate rises would continue, predicated on the US economy’s current strength. New York’s benchmark S&P 500 index finished just 0.3% down while the Dow Jones Industrial Average was 0.9% lower. Harley-Davidson managed to hang on to most of its recent gains, ending up a mere 0.1% in arrears. Polaris wasn’t on the same gravy train and copped a hard 5.5% loss.

According to indices, the Far East appeared less turbulent. But whatever optimism was around didn’t reach bike producers with any consistency. In Japan, Tokyo’s Nikkei 225 posted a 1% weekly increase. But the sole biker beneficiary was Yamaha, adding a useful 4.1%. Kawasaki and Honda incurred respective 2.1% and 1.5% falls. Suzuki got the most severe punishment, 8.4% down in response to the rapidly shrinking value of rupee-denominated repatriated revenue from its Maruti Suzuki subsidiary in India.

Similarly, Shanghai’s SSE Composite index was 1.7% up but Chinese enthusiasm for motorcycling investment was distinctly patchy. Yamaha JV partner Jianshe was a surprise ruler of the roost thanks to its 9.1% resurgence. Guangzhou Auto and Zongshen rose too, respectively by 3.4% and 2.5%. Qianjiang and Jialing were both dead flat. All the rest were losers across an approximate 1%-3% range.                

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

USA (US dollar)

Harley-Davidson    P 45.30  C +0.67%  R 56.50 - 39.34  Y -2.97%
Polaris    P 100.95  C -1.47%  R 137.66 - 100.69  Y -1.5%
Textron    P 71.47  C -0.04%  R 72.87 - 51.07  Y +32.82%
US Highland    P 0.0012  +14.29%  R 0.0107 - 0.0004  Y +0.84%
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 60.59  C -0.2%  R 74.78 - 38.94  Y +51.1%

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 20.50  C -0.49%  R 23.65 - 20.00  Y +0.91%

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 -22.34%

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

INDONESIA (rupiah)

Astra    P 7350  C -0.34%  R 8750 - 6100  Y -4.64%
Indomobil    P 2050  C -2.38%  R 4780 - 815  Y +138.86%

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 77.50  C -1.66%  R 97.50 - 76.50  Y -5.39%
VW    P 149.30  C -1.13%  R 191.80 - 132.40  Y +6.85%
KTM    P 67.20  C -0.59%  R 70.00 - 48.90  Y +38.12%
Piaggio    P 1.97  C -3.95%  R 2.86 - 1.84  Y -23.84%
Energica    P 4.14  C N/A  R 5.92 - 2.71  Y +36.63%

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

PAKISTAN (Pakistani rupee)

Atlas Honda    P 420.00  C -2.18%  R 640.00 - 412.01  Y -25%
Pak Suzuki    P 315.00  C +2.16%  R 578.24 - 252.00  Y -31.88%

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

INDIA (rupee)

Hero    P 2933.25  C -5.01%  R 3895.00 - 2877.85  Y -20.18%
Bajaj    P 2687.45  C -3.45%  R 3472.60 - 2604.00  Y -11.82%
TVS    P 560.05  C -4.57%  R 794.90 - 507.00  Y -14.34%  
Eicher    P 24,185.40  C -2.88%  R 32,766.60 - 23,510.85  Y -22.2%
Mahindra    P 860.95  C -1.88%  R 993.00 - 612.50  Y +38.41%  
Maharashtra    P 2452.55  C -2.41%  R 3399.40 - 2103.55  Y -13.26%
Scooters India    P 34.85  C -0.43%  R 79.70 - 32.70  Y -17.42%

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 3439  C +0.94%  R 4151 - 3107  Y +6.35%
Yamaha    P 3185  C +1.76%  R 3935 - 2676  Y -2.66%
Suzuki    P 6508  C -1.87%  R 7680 - 5444  Y +11.75%
Kawasaki    P 3205  C +0.94%  R 4620 - 2890  Y -12.38%

CHINA (yuan)

Qianjiang    P 9.18  C +1.44%  R 23.99 - 8.44  Y -47.15%
Zongshen    P 4.90  C +2.73%  R 7.78 - 4.46  Y -33.83%   
Sundiro    P 3.26  C N/A  R 7.42 - 3.05  Y -55.03%
Jialing    P 4.90  C +0.62%  R 6.75 - 4.23  Y -23.32%
Lifan    P 4.64  C +1.09%  R 9.38 - 4.50  Y -47.81%
Loncin    P 4.93  C +1.02%  R 8.38 - 4.75  Y -35.81%
Linhai    P 6.58  C +0.61%  R 12.44 - 5.96  Y -44.24%
GAG    P 11.05  C +1.56%  R 21.44 - 10.00  Y -40.47%
CFMoto    P 16.46  C +1.17%  R 37.70 - 15.18  Y -52.47%

CHINA (Hong Kong dollar)

Jianshe    P 8.00  C +1.52%  R 10.95 - 5.30  Y -25.65%

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 N/A  R 6.53 - 5.87  Y +0.35%
Hong Leong    P 10.64  C -2.21%  R 12.30 - 9.00  Y +18.26%

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

SOUTH KOREA (won)

KR    P 586  C +2.99%  R 801 - 475.5  Y -24.44%
Daelim    P 82,600  C -0.48%  R 93,300 - 70,000  Y +4.4%

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.)