10 APRIL: WEEKLY MOTORCYCLE INDUSTRY SHARE GUIDE

A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 10 April 2015.

This was an ebullient week for global stock markets, with Wall Street’s S&P 500 index not far off another record high after posting a weekly rise of 1.58%. Prinicipal driver for investor optimism was an announcement by giant US conglomerate General Electric of a decision to sell off the majority of its huge financial services arm — the best-known chunk being GE Capital — and return an extraordinary £62bn to shareholders through ramped-up dividends and share buy-backs. GE will henceforth focus on the core industrial businesses which originally underpinned its empire. That vote of corporate confidence in American industrial might inevitably boosted other leading domestic metal-bashers. In the motorcycling firmament, both Harley-Davidson and Polaris enjoyed stock price hikes.

Europe was equally cheerful too, pushing the FTSE Eurofirst 300 index up by 3.69% to a 15-year peak. Trader motivation came from ongoing intervention from the European Central Bank and further forex weakness from the euro, lifting export prospects. Germany’s triumvirate of premier-league automotives with biker links climbed on that enthusiasm, as did fellow Teuton KTM in Austria. Only Italy’s Piaggio let the side down, retreating slightly from previous weekly gains thanks to a 1.3% slide.

Indian motorcycle market leader Hero MotoCorp posted the only lost ground among that nation’s quoted bike makers on the Bombay Stock Exchange. The rest were all rising fractionally despite a flat BSE Sensex 30. Japan, on the other hand, was cheering along with the Yanks. Tokyo’s Nikkei 225 racked up a 2.43% gain to briefly touch its highest point since the end of the last century. Three of the four Japanese bike brands comfortably added value while Suzuki held station without loss.

As for China, share prices generally are up and down like a stripper’s knickers as investors continue to bleed money out of an increasingly moribund property development market into casino-style equity risks, often without rhyme, reason or relevant information. During the past week, a two-thirds consensus of Chinese motorcycle manufacturers saw positive share action while the rest fell back from recent rises.

An indicator of how little sense there is in all of this is the performance of Yamaha JV partner Jianshe’s share price, which increased by a splendid 17% over the past week. A month ago, Jianshe admitted that its bike sales in February had dropped by 18.4 per cent to 52,098 units. Anywhere else, it would be safe to assume that such details would knock the stock. But not in China. Since that revelation, Jianshe has grown in value by 26%.  

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

USA (US dollar)

Harley-Davidson    P 62.51  C -0.13%  R 74.13 – 54.22  Y -2.93%

Polaris    P 143.54  C -1.68%  R 159.33 – 124.728  Y +11.47%

Arctic Cat    P 35.76  C -2.61%  R 46.275 – 26.00  Y -17.59%

US Highland    P 0.60  C +15.38%  R 0.60 – 0.13  Y N/A

Viper    P 0.0033  C +32%  R 0.03 – 0.0012  Y -81.67%

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 24.90  C +2.77%  R 30.24 – 20.67  Y -14.64%

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 27.65  C +1.84%  R 46.30 – 25.20  Y -37.87%

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

VIETNAM (Hong Kong dollar)

VMEPH    P 0.485  C +3.19%  R 0.69 – 0.40  Y -1.02%

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

INDONESIA (rupiah)

Astra    P 8150  C N/A  R 8575 – 6325  Y +9.42%

Indomobil    P 3900  C +1.3%  R 5025 – 3050  Y -22.06%

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 117.055  C +0.65%  R 123.75 – 74.74  Y +34.44%

Daimler    P 88.512  C +1.33%  R 96.07 – 55.10  Y +38.35%

VW    P 244.235  C +0.98%  R 254.99 – 147.35  Y +31.67%

KTM    P 131.50  C +2.77%  R 141.00 – 79.00  Y +58.41%

Piaggio    P 2.88  C +0.7%  R 3.092 – 1.93  Y +3.45%

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

PAKISTAN (Pakistani rupee)

Atlas Honda    P 390.45  C +0.91%  R 405.30 – 209.00  Y N/A

Pak Suzuki    P 397.75  C +1.72%  R 450.85 – 187.00  Y N/A

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

INDIA (rupee)

Hero    P 2583.85  C -1.06%  R 3271.80 – 2110.00  Y +23.24%

Bajaj    P 2098.75  C +0.01%  R 2695.00 – 1840.10  Y +6.82%

TVS    P 256.95  C +2.53%  R 322.30 – 84.00  Y +180.1% 

Eicher    P 16,230.25  C -0.44%  R 17,200.00 – 5756.20  Y +166.66%

Mahindra    P 1286.75  C +0.96%  R 1433.70 – 964.31  Y +29.49%

Maharashtra    P 879.05  C +0.1%  R 1124.00 – 462.65  Y +86.61%

Scooters India    P 29.00  C -3.49%  R 38.85 – 17.05  Y +58.04%

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 4171.5  C +1.64%  R 4188 – 3239  Y +23.98%

Yamaha    P 3000  C -0.17%  R 3145 – 1506  Y +90.45%

Suzuki    P 3667  C -0.24%  R 4041 – 2526  Y +39.65%

Kawasaki    P 614  C -1.13%  R 647 – 350  Y +69.91%

CHINA (yuan)

Qianjiang    P 9.25  C +1.43%  R 9.27 – 4.90  Y +64.3%

Zongshen    P 17.00  C +3.41%  R 19.11 – 4.37  Y +210.95%  

Sundiro    P 6.89  C +2.07%  R 7.30 – 3.61  Y +74.06%

Jialing    P 10.11  C +1%  R 10.36 – 3.75  Y +143.61% 

Lifan    P 13.42  C +3.87%  R 13.95 – 6.33  Y +92.34%

Loncin    P 19.42  C +1.62%  R 21.15 – 8.24  Y 108.23%

Linhai    P 13.88  C +5.07%  R 14.29 – 5.47  Y +140.53%

CHINA (Hong Kong dollar)

Jianshe    P 9.90  C +10%  R 9.90 – 5.41  Y +67.8% 

Guangzhou Auto    P 9.00  C +2.27%  R 9.87 – 6.58  Y +5.81%

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 6.79  C -0.44%  R 8.10 – 6.48  Y -8.36%

Hong Leong    P 4.52  C -0.44%  R 7.543 – 3.95  Y -15.55%

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

SOUTH KOREA (won)

KR    P 1535  C +5.14%  R 1560 – 780  Y +67.21%

Daelim    P 69,300  C -0.29%  R 94,300 – 50,400  Y -18.63%

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.)