15 MAY: WEEKLY MOTORCYCLE INDUSTRY SHARE PRICES

A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 15 May 2015.

Despite latest positive monthly data on American employment growth, doubts were again raised about overall US economic recovery in the past week. Domestic retail sales were flat in April, dashing hopes that the improving jobs situation would boost consumer spending. Industrial output also fell for the fifth month in a row. This combination of bad news began to put pressure on the dollar, the value of which declined against a basket of other currencies.

Although that forex factor should boost US export prospects, perhaps explaining why New York’s S&P 500 index held station with a marginal 0.09% weekly increase, manufacturing stocks were clearly out of favour. Harley-Davidson shares fell by 2.7%. Polaris was down by 2.1%.

And forex is a double-edged sword, of course. Dollar weakness meant a strengthening euro, attacking export-oriented European equities. Germany’s Dax Xetra index on the Frankfurt exchange dropped by 2.2% and the Eurofirst 300 lost 1.11%. All three big German automotives with motorcycling sidelines suffered falling share prices. BMW was hit hardest, down by 6.3% across five days of trading. Italian investors, meanwhile, confounded analyst opinion on Piaggio’s less-than-impressive quarterly results by pushing its stock upwards by 4.4%.

However, the Japanese failed to absorve any forthcoming forex threat to the yen and the Nikkei 225 rose by 1.83%. Three of Japan’s big-four motorcycle producers benefited with only Honda posting a modest decline — probably asociated with its involvement in a worsening global car airbag recall. India bounced back from recent retreats too, as all of its indigenous bike makers enjoyed rising share prices. By far the most impressive was Royal Enfield parent Eicher, which surged by 18.6%. Extremely muscular quarterly financial results  for the bike subsidiary had more to do with that than an annoucement it had bought British sporting motorcycle chassis specialist Harris Performance a couple of days later.

Finally, we end in China, where the only sort of news allowed is good news. Two motorcycle manufacturers — Benelli owner Qianjiang and Honda JV partner Sundiro — had their stock-trading suspensions lifted and returned to accruing value. Lifan and Linhai still languish under regulatory investigation, though. For everybody else, it was bull-run business as usual. In particular, Zongshen continued its market-leading ascent into shareholder heaven with yet another chunky weekly gain, up by 15.7%.       

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

USA (US dollar)

Harley-Davidson    P 55.69  C +1.98%  R 72.78 – 53.04  Y -21.33%

Polaris    P 139.99  C +0.02%  R 159.33 – 124.73  Y +10.49%

Arctic Cat    P 32.15  C +2.03%  R 40.59 – 26.00  Y -2.6%

US Highland    P 1.05  C +72.13%  R 1.05 – 0.13  Y N/A

Viper    P 0.0033  C N/A  R 0.022 – 0.0012  Y -85.65%

Notes: Polaris makes Victory and Indian bikes, ATVs, snowmobiles, quadricycles and EVs. Arctic Cat makes ATVs and snowmobiles. US Highland makes off-road bikes. Viper Powersports makes the Diamondback Super Cruiser.

CANADA (Canadian dollar)

BRP    P 26.58  C -0.45%  R 29.81 – 20.67  Y -8.6%

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

TAIWAN (Taiwanese dollar)

Sanyang    P 25.60  C -0.39%  R 33.60 – 25.20  Y -2.66%

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

VIETNAM (Hong Kong dollar)

VMEPH    P 0.67  C +9.84%  R 0.74 – 0.40  Y +61.45%

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

INDONESIA (rupiah)

Astra    P 7500  C -0.33%  R 8575 – 6325  Y +2.82%

Indomobil    P 4000  C +1.27%  R 5025 – 3050  Y -16.49%

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 102.26  C -2.15%  R 123.75 – 74.74  Y +21.58%

Daimler    P 85.002  C -1.4%  R 96.07 – 55.10  Y +34.07%

VW    P 215.36  C -2.44%  R 254.99 – 147.35  Y +18.52%

KTM    P 119.95  C -0.04%  R 141.00 – 82.00  Y +45.46%

Piaggio    P 2.854  C +1.49%  R 3.00 – 1.93  Y +10.32%

Notes: Daimler’s AMG-Mercedes subsidiary has a 25% stake in MV Agusta. Volkswagen owns Ducati and a 20% stake in Suzuki.

PAKISTAN (Pakistani rupee)

Atlas Honda    P 359.00  C -0.28%  R 409.00 – 209.00  Y N/A

Pak Suzuki    P 415.00  C +0.38%  R 450.85 – 195.95  Y N/A

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

INDIA (rupee)

Hero    P 2529.70  C -0.31%  R 3271.80 – 2251.30  Y +9.41%

Bajaj    P 2186.50  C +0.95%  R 2695.00 – 1840.10  Y +15.65%

TVS    P 221.30  C -1.29%  R 322.30 – 110.40  Y +91.52% 

Eicher    P 18,722.00  C +3%  R 18,794.85 – 6215.60  Y +195.9%

Mahindra    P 1249.05  C +1.78%  R 1433.70 – 1075.86  Y +13.38%

Maharashtra    P 936.70  C +0.66%  R 1124.00 – 477.00  Y +98.72%

Scooters India    P 28.20  C +1.44%  R 38.85 – 19.05  Y +38.57%

Notes: Hero MotoCorp is a former Honda JV partner. Bajaj a major shareholding in KTM and ties with it and Kawasaki. TVS is a former Suzuki JV partner. Eicher makes the Royal Enfield brand. Mahindra & Mahindra has an own-brand bike range and a majority stake in French scooter brand Peugeot. Maharashtra Scooters assembles CKD scooter kits manufactured by Bajaj. Scooters India makes Vikram three-wheeled taxis and light trucks. The Indian government has a majority stake.

JAPAN (yen)

Honda    P 4178  C -0.24%  R 4400 – 3239  Y +27.39%

Yamaha    P 2974  C -0.13%  R 3145 – 1506  Y +88.21%

Suzuki    P 4100  C +0.92%  R 4130 – 2720  Y +47.61%

Kawasaki    P 607  C N/A  R 647 – 351  Y +66.61%

CHINA (yuan)

Qianjiang    P 10.19  C -2.86%  R 10.68 – 5.12  Y +95.96%

Zongshen    P 27.45  C +8.07%  R 27.90 – 4.37  Y +454.53%  

Sundiro    P 7.68  C -2.78%  R 7.98 – 3.66  Y +107.57

Jialing    P 10.79  C +1.31%  R 11.86 – 4.09  Y +156.29% 

Lifan    P 14.65  C N/A  R 15.03 – 6.33  Y N/A [Trading suspended]

Loncin    P 23.50  C +2.17%  R 24.25 – 8.24  Y +182.34%

Linhai    P 13.37  C N/A  R 14.29 – 5.47  Y N/A [Trading suspended]

CHINA (Hong Kong dollar)

Jianshe    P 14.43  C +7.37%  R 14.67 – 5.41  Y +152.27% 

Guangzhou Auto    P 7.81  C -0.76%  R 9.87 – 6.58  Y +5.33%

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 is the parent of Honda JV partner and own-brand bike manufacturer Wuyang. 

MALAYSIA (ringgit)

Oriental Holdings    P 7.95  C +1.92%  R 8.10 – 6.48  Y +4.6%

Hong Leong    P 4.75  C +0.64%  R 7.543 – 3.95  Y -10.01%

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

SOUTH KOREA (won)

KR    P 1160  C N/A  R 1600 – 780  Y +5.45%

Daelim    P 80,500  C -5.96%  R 94,300 – 50,400  Y -4.02%

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.)