A snapshot of global bike and ATV industry share performance at the trading closure on Friday 19 December 2014.
Very definitely a week of two distinct halves, which kicked off with New York mired in gloom. The price of benchmark Brent crude dipped towards $58 a barrel, the sort of Xmas discount that would have Aldi and Lidl applauding and oil company executives gnashing their teeth. Then the rouble went into free fall, challenging the ability of Russian kleptocrats to service their mountains of dollar-demoninated debt. In response, the S&P 500 index dived towards a six-week low.
But this was followed by a splendid demonstration of the US Federal Reserve’s power to influence investor confidence. A mid-week announcement that it wasn’t about to raise interest rates any time soon turned markets around and the S&P soared with its biggest two-day gain in three years, finishing up by more than three per cent — close to a recent record high.
Most US stocks that had just taken a battering recovered accordingly. Polaris was among them, ending with a 2.6 per cent weekly improvement. However, Harley-Davidson didn’t join that particular party, losing 2.2 per cent.
The Fed factor extended elsewhere in developed markets. Good news from the US boosted Tokyo by Friday, with the Nikkei 225 index jumping by 2.4 per cent in the final trading session to achieve a weekly plus of 1.4 per cent. Three of Japan’s leading motorcycle manufacturers achieved positive share price gains on the back of that. Only Suzuki let the side down.
The same effect could be noted in Europe, as the FTSE Eurofirst 300 rebounded to rise by three per cent week-on-week. Every European-bike-related stock rose, apart from Piaggio.
Emerging markets had more varied tales to tell. Three of India’s leading motorcycle producers (Hero, Bajaj and Mahindra) lost ground, reflecting BSE Sensex 30 depression. Only TVS and Eicher bucked the trend, albeit through very modest gains.
Chinese punters, meanwhile, continued to treat that country’s stock exchanges like casinos, rabidly buying and selling high volumes of shares without anything remotely ressembling rational investment decisions based on company performance data.
But although the Shanghai Composite index climbed to a highest close since 2011 and has put on about 45 per cent this year, motorcycle stocks clearly weren’t flavour of the week. Jialing was the only exception from a sell-off that saw all the others lose value. These included Loncin, which returned to the market after its one-month punitive trading suspension to take a different sort of retribution.
Price (P) High (H) Low (L) Change (C) 52-week range (R) One-year return (Y)
USA (US dollar)
Harley-Davidson P 64.79 H 65.28 L 64.20 C +0.56% R 74.13 – 54.22 Y -3.21%
Polaris P 148.54 H 149.07 L 147.09 C +0.01% R 159.33 – 118.80 Y +6.36%
Arctic Cat P 31.80 H 32.09 L 31.61 C -0.5% R 59.73 – 30.11 Y -42.6%
US Highland P 0.51 H 0.60 L 0.50 C +292.31% R 0.60 – 0.13 Y +88.89%
Viper P 0.0012 H 0.0012 L 0.0012 C N/A R 0.05 – 0.0012 Y -94%
Notes: Polaris makes Victory and Indian motorcycles, ATVs, snowmobiles, quadricycles and EVs. Arctic Cat makes ATVs and snowmobiles. US Highland makes a range of four-stroke dirt bikes. Viper Powersports produces the Diamondback Super Cruiser with a British-built 2490cc Ilmor engine.
CANADA (Canadian dollar)
BRP P 23.75 H 23.76 L 23.35 C +1.32% R 31.98 – 20.67 Y -19.49%
Notes: Bombardier Recreational Products makes Can-Am ATVs and Spyder road trikes, as well as Ski-Doo snowmobiles, Sea-Doo personal watercraft and Rotax engines for a range of applications including motorcycles — most recently Buell’s EBR superbike.
EUROPE (euro)
BMW P 90.015 H 91.40 L 88.64 C -0.77% R 96.10 – 74.74 Y +10.19%
Daimler P 69.04 H 69.88 L 68.18 C +0.21% R 71.27 – 35.25 Y +15.93%
Piaggio P 2.312 H 2.396 L 2.31 C -1.45% R 3.092 – 1.93 Y -1.95%
KTM P 136.00 H 136.05 L 136.00 C -0.04% R 140.00 – 60.00 Y +123.85%
VW P 182.644 H 184.95 L 181.00 C +0.46% R 198.43 – 147.35 Y -2.07%
Notes: Daimler has a 25 per cent stake in MV Agusta through its AMG-Mercedes subsidiary. Volkswagen is the owner of Ducati Motor Holding
INDIA (rupee)
Hero P 3074.10 H 3148.85 L 3040.05 C +0.28% R 3271.80 – 1907.00 Y +49.71%
Bajaj P 2473.55 H 2524.20 L 2452.85 C -1.18% R 2695.00 – 1793.20 Y +30.83%
TVS P 252.40 H 262.50 L 250.60 C -2.02% R 266.70 – 60.60 Y +297.29%
Eicher P 14,621.10 H 14,809.90 L 14,511.00 C +1.34% R 15,785.00 – 4401.10 Y +189.76%
Mahindra P 1222.25 H 1252.50 L 1219.35 C +0.82% R 1433.70 – 846.25 Y +27.52%
Maharashtra P 1010.25 H 1042.00 L 995.25 C -2.03% R 1124.00 – 394.05 Y +153.53%
Scooters India P 30.40 H 30.40 L 30.00 C +1.67% R 38.85 – 14.20 Y +94.87%
Notes: Hero MotoCorp is a former Honda JV partner. Bajaj has technical partnerships with KTM and Kawasaki. TVS is a former Suzuki JV partner. Bajaj and TVS also both export. Eicher makes the Royal Enfield brand. Mahindra & Mahindra has a technical partnership with Taiwanese brand SYM and an own-brand motorcycle range. Maharashtra Scooters assembles CKD scooter kits manufactured by Bajaj, which is also a substantial shareholder in the company. Scooters India manufactured Lambretta scooters until 1997 but now only makes Vikram three-wheeled taxis and light trucks. The Indian government has a majority stake.
PAKISTAN (Pakistani rupee)
Atlas Honda P 305.00 H 312.88 L 300.00 C -0.81% R 355.57 – 209.00 Y N/A
Pak Suzuki P 362.25 H 362.25 L 341.00 C +5% R 414.50 – 144.00 Y N/A
Notes: Atlas Honda and Pak Suzuki are JV motorcycle assembly and distribution partners.
JAPAN (yen)
Honda P 3580.5 H 3585 L 3542.5 C +2.45% R 4330 – 3239 Y -14.8%
Yamaha P 2452 H 2453 L 2403 C +3.99% R 2655 – 1265 Y +60.44%
Suzuki P 3686 H 3688.5 L 3618 C +2.63% R 4041 – 2497 Y +35.26%
Kawasaki P 557 H 558 L 551 C +2.39% R 589 – 350 Y +34.38%
CHINA (yuan)
Qianjiang P 6.46 H 6.73 L 6.38 C -3.15% R 7.89 – 4.67 Y +33.47%
Qingqi P 6.21 H 6.44 L 6.15 C -3.72% R 7.34 – 3.34 Y N/A
Zongshen P 9.51 H 9.71 L 9.21 C -2.76% R 10.82 – 3.92 Y N/A
Sundiro P 5.46 H 5.52 L 5.32 C +0.18% R 5.95 – 3.48 Y +45.23%
Jialing P 8.94 H 9.09 L 8.51 C -1.32% R 9.28 – 3.01 Y +175.08%
Lifan P 9.11 H 9.48 L 8.85 C -4.71% R 10.64 – 5.65 Y +48.17%
Loncin P 15.41 H 17.03 L 14.83 C -6.49% R 18.81 – 8.24 Y +71.52%
Linhai P 8.76 H 8.85 L 8.62 C N/A R 11.39 – 4.80 Y +72.94%
CHINA (Hong Kong dollar)
Jianshe P 7.65 H 7.65 L 7.40 C -0.65% R 9.40 – 5.28 Y +38.84%
Guangzhou Auto P 7.04 H 7.15 L 6.93 C +0.28% R 9.87 – 6.72 Y -18.27%
Notes: Qianjiang owns both the exported Keeway brand and the formerly Italian Benelli brand. Qingqi is a Suzuki JV partner, a Peugeot scooter contractor and also makes Qingqi and Sinnis branded bikes. Zongshen produces own-brand bikes and proprietary engines, and has JV partnerships with Piaggio, producing scooters, and Harley-Davidson, making parts. Sundiro is the biggest Honda JV bike partner in China. Jialing makes and exports own-brand bikes using Honda licensed technology and is a Honda JV power products partner. Lifan makes and exports own-brand bikes, and distributes MV Agusta products 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. It also has JV car production partnerships with Honda and Toyota.
VIETNAM (Hong Kong dollar)
VMEPH P 0.42 H 0.43 L 0.42 C -5.62% R 0.69 – 0.40 Y -20.75%
Notes: Vietnam Manufacturing & Export Processing Holdings is the third-largest Vietnamese scooter and motorcycle manufacturer. It is a JV partnership with Taiwanese brand SYM. VMEPH is headquartered in Hong Kong and listed on both the HK and Taipei stock exchanges.
TAIWAN (Taiwanese dollar)
Sanyang P 28.35 H 29.00 L 28.30 C -0.35% R 63.00 – 25.20 Y -37.69%
Notes: Sanyang Industry is the leading Taiwanese powered two-wheeler manufacturer through its widely-exported SYM brand.
MALAYSIA (ringgit)
Oriental Holdings P 6.70 H 6.70 L 6.60 C +2.29% R 8.50 – 6.48 Y -20.47%
Hong Leong P 4.34 H 4.34 L 4.23 C +3.33% R 7.543 – 3.95 Y +6.6%
Notes: Oriental Holdings is a Honda JV partner. Hong Leong Industries is a Yamaha JV partner and former owner of the German MZ concern.
INDONESIA (rupiah)
Astra P 7200 H 7375 L 7175 C N/A R 8050 – 6225 Y +15.93%
Notes: Astra International is a Honda JV partner. Its controlling shareholder is Jardine Matheson Holdings, a British-managed conglomerate domiciled in Hong Kong.
SOUTH KOREA (won)
KR P 989 H 1015 L 986 C -1.59% R 1495 – 425 Y +122.25%
Daelim P 66,300 H 66,800 L 65,700 C +0.76% R 96,000 – 62,700 Y -27.22%
Notes: KR Motors (formerly S&T) manufactures Hyosung-branded bikes and ATVs, exporting to the US, Europe including the UK and elsewhere. Daelim Industrial is a diversified conglomerate which retains a controlling 59 per cent stake in Daelim Motor, the largest motorcycle and scooter manufacturer in Korea. (The remainder is British-owned, by the private equity arm of Standard Chartered Bank.)