28 OCTOBER: WEEKLY MOTORCYCLE INDUSTRY SHARE PRICES

A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 28 October 2016. BDN financial editor Roger Willis crunched the numbers.

A mood of caution pervaded New York for most of the week, on the back of renewed oil price pressures, mixed quarterly corporate earnings revelations and the impending US presidential election. Wall Street’s S&P 500 index suffered a three-day run of losses. But then it snapped sharply upwards on Friday as third-quarter US GDP growth figures exceeded analyst expectations, closing only 0.1% down on a weekly basis.

Harley-Davidson stock followed that curve, retreating steadily as investors digested the worst aspects of Q3 results delivered in the previous week, then bouncing back on Friday’s perky GDP sentiment to finish only 0.5% in arrears. Polaris wasn’t so fortunate. Dire Q3 financial performance unveiled on Tuesday put the boot in with a vengeance and its shares posted a 5.9% weekly drop.

Europe was also nervous and more firmly negative, reacting to a government bond sell-off. The eurozone’s Stoxx 60 and Eurofirst 300 indices both declined by 1%. But motorcycle-related shares managed to resist that degree of gloom. Best was KTM with a 1.2% rise. The three big German automotives struggled to even achieve 1% growth. Piaggio added just 0.6%, although excellent Q3 results announced after Milan’s Borsa Italiana pulled the rug on Friday afternoon should lift it next week.

Brightest developed-world action could be found in Tokyo, where the Nikkei 225 rose by 1.5%. Driving force was provided by further yen weakening against the US dollar. All four exporting bike producers therefore made gains. For Honda and Suzuki, improvements were limited to below 2%. Yamaha beat them with 3.6% and Kawasaki was top dog on 4% — despite confessing that its motorcycle division had plunged back into the red in half-yearly results released on Friday.

Major emerging countries had troubles of their own. Against a background of all-out boardroom warfare at India’s gigantic Tata conglemerate, after the abrupt dismissal of company chairman Cyrus Mistry, choppy stock-trading knocked Mumbai’s BSE Sensex 30 downwards by 0.5%. Most indigenous motorcycle manufacturers were fractionally either side of flat. However, Eicher was penalised by a 4.4% fall due to profit-taking, in the wake of announcing half-yearly results boasting 34.2% growth in Royal Enfield bike sales.

China’s Shanghai Composite index put on a weekly 0.4%. But that masked a stock sell-off gathering pace on Friday as investors twitched about governmental action against corporate debt excesses. Biking winners and losers were pretty much 50-50, although many of the price movements were fairly marginal. 

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

USA (US dollar)

Harley-Davidson    P 56.07  C +1.01%  R 57.43 – 36.36  Y +16.89%

Polaris    P 75.27  C +0.31%  R 117.29 – 67.80  Y -31.4%

Arctic Cat    P 14.62  C +1.81%  R 22.53 – 8.90  Y -28.41%

US Highland    P 0.0004  C +33.33%  R 0.43 – 0.0002  Y N/A

Confederate    P 0.05  C N/A  R 0.33 – 0.04  Y -85%

Notes: Polaris makes Victory and Indian bikes, ATVs, snowmobiles, quadricycles and EVs. Arctic Cat makes ATVs and snowmobiles. US Highland makes off-road bikes. Confederate Motors makes limited-edition cruisers.

CANADA (Canadian dollar)

BRP    P 26.19  C -0.11%  R 27.30 – 13.76  Y +11.26%

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

TAIWAN (Taiwanese dollar)

Sanyang    P 20.15  C -0.74%  R 23.90 – 19.80  Y -2.88%

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

VIETNAM (Hong Kong dollar)

VMEPH    P 0.45  C -1.11%  R 0.53 – 0.36  Y -7.29%

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

INDONESIA (rupiah)

Astra    P 8175  C -0.91%  R 8875 – 5700  Y +41.9%

Indomobil    P 1325  C -1.49%  R 3000 – 1250  Y -55.53%

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 79.33  C -0.36%  R 104.85 – 63.38  Y -11.07%

Daimler    P 64.87  C -0.64%  R 85.50 – 50.83  Y -12.74%

VW    P 134.55  C +0.04%  R 146.50 – 106.65 Y +7.21%

KTM    P 4.38  C +1.72%  R 4.65 – 3.14  Y +31.78%

Piaggio    P 1.64  C N/A  R 2.50 – 1.45  Y -25.62%

Notes: Daimler’s AMG-Mercedes subsidiary has a 25% stake in MV Agusta. Volkswagen Group owns Ducati.

PAKISTAN (Pakistani rupee)

Atlas Honda    P 580.00  C -1.9%  R 611.75 – 342.00  Y N/A

Pak Suzuki    P 519.00  C -0.61%  R 595.00 – 363.01  Y N/A

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

INDIA (rupee)

Hero    P 3351.85  C +1.15%  R 3740.00 – 2375.00  Y +32.9%

Bajaj    P 2848.10  C +3.14%  R 3122.00 – 2171.95  Y +14.37%

TVS    P 405.00  C -1.72%  R 420.00 – 256.00  Y +53.89%  

Eicher    P 24,020.00  C -1.93%  R 26,641.30 – 14,800.00  Y +36.12%

Mahindra    P 1311.80  C +0.93%  R 1508.95 – 1091.25  Y +11.76%

Maharashtra    P 1933.65  C -0.8%  R 2170.00 – 1056.00  Y +51%

Scooters India    P 41.70  C +2.96%  R 44.85 – 22.65  Y +43.79%

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 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 3150  C +0.57%  R 4143 – 2417  Y -19.87%

Yamaha    P 2307  C +1.9%  R 3045 – 1409  Y -13.47%

Suzuki    P 3703  C +0.57%  R 4097 – 2450  Y -6.26%

Kawasaki    P 310  C +1.97%  R 502 – 257  Y -34.39%

CHINA (yuan)

Qianjiang    P 18.97  C -1.61%  R 20.08 – 6.71  Y +124.76%

Zongshen    P 10.19  C -1.36%  R 18.20 – 8.08  Y -32.06%  

Sundiro    P 8.99  C -1.32%  R 9.94 – 5.61  Y +33.91%

Jialing    P 8.81  C -2.33%  R 10.99 – 5.67  Y -5.47%

Lifan    P 9.59  C -1.54%  R 19.47 – 8.05  Y -26.05%

Loncin    P 20.59  C -2.74%  R 25.52 – 14.80  Y +2.29%

Linhai    P 12.79  C -4.19%  R 14.71 – 8.41  Y N/A

GAG    P 22.44  C N/A  R 26.27 – 18.10  Y N/A [Trading suspended]

CHINA (Hong Kong dollar)

Jianshe    P 15.03  C +0.54%  R 19.20 – 11.25  Y N/A

Notes: Qianjiang owns Keeway and formerly Italian 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.

MALAYSIA (ringgit)

Oriental Holdings    P 6.96  C +1.61%  R 7.52 – 6.48  Y +2.08%

Hong Leong    P 9.90  C +3.66%  R 9.92 – 5.25  Y +67.73%

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

SOUTH KOREA (won)

KR    P 951.00  C -2.26%  R 1770 – 905  Y -9.43%

Daelim    P 83,500  C -1.18%  R 94,300 – 62,000  Y +12.13%

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.)