A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 2 May 2014.
Strong first-quarter results from US biking blue-chip Harley inevitably rode its share price rapidly upwards in the past fortnight, at one point adding 11 per cent but settling on a nine per cent gain by this Friday’s close of play. However, an even more impressive record Q1 financial performance from Polaris — announced in the same timeframe — didn’t have a similar effect. Polaris stock surprisingly flatlined. America’s benchmark S&P 500 index was up by 1.16 per cent week-on-week.
Although the Eurofirst 300 index rose by 1.37 per cent across the week, deepening concerns about Ukraine’s remorseless blundering into civil war subdued stock market activity. The giant German automotive groups which also make motorcycles (BMW and VW) were affected, experiencing minor declines. But bolstered by a rejuvenated Italian domestic bike market, Piaggio bucked that trend in Milan, touching an annualised high point of a tad over three euros and finishing not far short of it.
A weekly mystery flagged up on the Karachi exchange in Pakistan, where that country’s two listed JV motorcycle assembly operations — Atlas Honda and Pak Suzuki — were both on the receiving end of a sudden five per cent plunge in value on Friday. Arcane religious and/or political reasons were probably to blame.
India, still in the throes of its month-long general election, was all over the place. Biggest indigenous bike manufacturers Hero and Bajaj were on a slide while BMW Motorrad’s chosen local production partner TVS scored yet another century as its price climbed back up into three figures. It’s now stacked on ten per cent in the past month and almost 30 per cent since January.
Trading in China was constrained by closure of the Shanghai and Shenzhen exchanges for much of this week owing to holidays. Japan wasn’t too lively either, due to investor nerves as the quarterly financial reporting season kicks in. The Nikkei 225 barely moved, positive by only 0.2 per cent. Honda’s price suffered the same fate, despite unveiling good full-year results — particularly in terms of global motorcycle sales. Trouble was in the small print, of course. While the brand’s bikes were going onward and upward, forecasts for its key US car sales were doing no such thing.
And finally, we look to South Korea, where listed Hyosung manufacturer S&T Motors has trebled in value over the past 12 months and then abruptly disappeared. In reality the company has just been remonikered as KR Motors by majority owner S&T Holdings, one of Korea’s diversified “chaebol” conglomerates, presumably as a precursor to floating off the rest of its shares.
Price (P) High (H) Low (L) Change (C) 52-week range (R) One-year return (Y)
USA (US dollar)
Harley-Davidson P 72.68 H 73.48 L 72.52 C -0.42% R 74.13 – 49.15 Y +35.66%
Polaris P 136.40 H 137.90 L 135.61 C +0.68% R 146.99 – 83.57 Y +62.16%
Arctic Cat P 41.54 H 42.35 L 41.50 C -0.36% R 61.13 – 40.12 Y -7.51%
US Highland P 0.22 H 0.22 L 0.22 C N/A R 0.36 – 0.22 Y N/A
Viper P 0.018 H 0.018 L 0.018 C -28% R 0.10 – 0.001 Y -40%
Notes: Polaris makes ATVs, snowmobiles, Victory and Indian motorcycles. 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 29.35 H 29.52 L 29.03 C +0.34% R 31.98 – 21.50 Y N/A
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.
EUROPE (euro)
BMW P 89.10 H 90.72 L 88.73 C -1.34% R 94.39 – 63.82 Y +27.79%
Piaggio P 2.936 H 2.98 L 2.91 C -1.41% R 3.092 – 1.871 Y +59.52%
KTM P 82.90 H 82.90 L 82.90 C -0.11% R 84.00 – 50.15 Y N/A
VW P 188.35 H 194.05 L 188.00 C -1.51% R 198.43 – 142.05 Y +24.36%
Notes: Volkswagen is the owner of Ducati Motor Holding
INDIA (rupee)
Hero P 2198.65 H 2224.95 L 2185.00 C -0.08% R 2320.00 – 1563.60 Y 40.76%
Bajaj P 1906.70 H 1928.05 L 1896.00 C -0.29% R 2195.00 – 1680.05 Y +8.02%
TVS P 101.30 H 102.60 L 95.90 C +6.18% R 102.65 – 28.10 Y +163.4%
Eicher P 6248.40 H 6285.00 L 6131.95 C +0.76% R 6374.00 – 2965.00 Y +100.56%
Mahindra P 1057.85 H 1068.00 L 1045.30 C -1.52% R 1091.95 – 740.15 Y +11.71%
Maharashtra P 474.45 H 490.00 L 468.80 C +1.61% R 545.90 – 326.65 Y +33.89%
Scooters India P 18.50 H 18.50 L 18.00 C +1.93% R 24.20 – 13.50 Y -15.53%
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 305.05 H 305.05 L 305.05 C -5% R 328.00 – 167.73 Y N/A
Pak Suzuki P 200.93 H 211.95 L 200.93 C -5% R 232.64 – 119.00 Y N/A
Notes: Atlas Honda and Pak Suzuki are JV motorcycle assembly and distribution partners.
JAPAN (yen)
Honda P 3472 H 3488 L 3445 C +1.11% R 4405 – 3292 Y -7.11%
Yamaha P 1642 H 1645 L 1592 C +2.5% R 1825 – 1217 Y +29.1%
Suzuki P 2640 H 2667 L 2628 C -1.42% R 2982 – 2051 Y +8.61%
Kawasaki P 386 H 390 L 383 C N/A R 496 – 283 Y +29.44%
CHINA (yuan)
Qianjiang P 5.10 H 5.14 L 5.00 C +1.19% R 6.54 – 4.27 Y +15.66%
Qingqi P 4.63 H 4.78 L 4.62 C -2.53% R 5.19 – 3.34 Y N/A
Zongshen P 5.15 H 5.18 L 5.02 C +2.39% R 5.77 – 3.92 Y +7.23%
Sundiro P 3.78 H 3.79 L 3.75 C N/A R 4.84 – 3.37 Y -16.53%
Jialing P 4.85 H 5.00 L 4.48 C ++5.66% R 5.00 – 2.90 Y +23.72%
Lifan P 6.57 H 6.61 L 6.49 C +0.61% R 7.64 – 5.11 Y +11.19%
Loncin P 8.90 H 8.97 L 8.86 C +0.23% R 11.10 – 6.78 Y -9.36%
Linhai P 5.74 H 5.81 L 5.66 C -1.54% R 7.00 – 4.42 Y +3.99%
CHINA (Hong Kong dollar)
Jianshe P 5.86 H 5.88 L 5.80 C +1.91% R 6.80 – 5.16 Y N/A
Guangzhou Auto P 8.10 H 8.16 L 7.95 C +3.58% R 10.94 – 6.20 Y +31.65%
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 0.475 H 0.475 L 0.47 C N/A R 0.68 – 0.45 Y –26.92%
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 25.75 H 27.80 L 25.75 C -6.87% R 63.00 – 25.00 Y -11.1%
Notes: Sanyang Industry is the leading Taiwanese powered two-wheeler manufacturer through its widely-exported SYM brand.
MALAYSIA (ringgit)
Oriental Holdings P 7.80 H 7.80 L 7.72 C N/A R 10.64 – 6.95 Y -17.8%
Hong Leong P 6.70 H 6.71 L 6.65 C +1.06% R 6.80 – 4.30 Y +63.85%
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 7425 H 7500 L 7400 C N/A R 8050 – 5100 Y +10.89%
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 1285 H 1330 L 1170 C +3.21% R 1495 – 414 Y +177.54%
Daelim P 83,700 H 84,600 L 82,500 C -0.48% R 110,000 – 76,700 Y +8.26%
Notes: KR Motors 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.)