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HomeNEWSFINANCIAL21 OCTOBER: WEEKLY MOTORCYCLE INDUSTRY SHARE PRICES

21 OCTOBER: WEEKLY MOTORCYCLE INDUSTRY SHARE PRICES

A snapshot of global bike and ATV industry share performance at the trading week closure on Friday, 21 October, 2016. BDN financial editor Roger Willis reports.

Currencies came into play across western markets this week. In the US, investors worried about whether the strengthening dollar will harm profitability of American companies with global exposure — in other words, exporters. Conversely, as both sterling and the euro weakened, that tended to boost export-earnings prospects in Europe.

Divergent central bank policies on either side of the Atlantic also came into play on the currency question. The US Federal Reserve seems to have shelved a rate-rise agenda or other intervention for the time being. But, while ECB president Mario Draghi kept interest rates on hold, lack of clarity on European quantitative easing continuation was the prime factor hammering euro valuation.

In New York, the S&P 500 index fell by 0.3%. Export concerns were ameliorated, though, by some quarterly financial news hitting or exceeding analyst expectations. Surprisingly, Harley-Davidson’s poor results came into that category, in as much as they weren’t as bad as many had suspected. So despite profits going down yet again, its share price went up sharply, flaunting a 13.1% rise. Polaris, which delivers the goods in a few days and has even less to brag about, also climbed by a more modest 5.6%.

Biker brands on our side of the pond were beneficiaries of the export angle. The eurozone’s Eurofirst 300 index put on 1.3%. KTM easily beat that, 4.3% up, followed by BMW’s 2.3% gain. VW was just ahead of the average too, on 1.4%. Daimler trailed, managing only 0.8%. Meanwhile, down in sunny Italy, Piaggio missed the boat completely, finishing dead flat week-on-week.

And, of course, export sentiments are always to the fore in Japan, where dollar strength meant a merciful weakening of the yen. However, a degree of fatigue appears to be affecting Japanese riders on their local currency seesaw. Tokyo’s Nikkei 225 stacked on 1.95% but none of the four motorcycle manufacturers managed to match that.

Emerging markets were mixed. India’s BSE Sensex 30 was 1.5% up and there were no dramatic moves either way among motorcycling majors. Hero and Eicher dropped a tad. Bajaj and TVS rose in similarly small increments. Armed with advance knowledge about Mahindra’s acquisition of dormant British bike brand BSA, our eyes were glued to the relevant share price. There was zero impact, though, because Mahindra waited until after the Bombay Stock Exchange’s closing bell on Friday to inform regulators (and therefore speculators) of its purchase. Expect fertiliser to hit the fan on Monday morning.

China was inscrutable. Indices were fairly flat — Shanghai up by 0.9% and Shenzhen 0.1% down — against a background of government curbs on property investment to stem a potential bubble bursting. Motorcycles obviously weren’t in favour either. Every listed manufacturer lost value apart from Guangzhou Auto, which was denied the opportunity by a trading suspension.

 

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

 

USA (US dollar)

Harley-Davidson    P 56.37  C +1.37%  R 57.33 – 36.36  Y +20.56%

Polaris    P 80.03  C +1.01%  R 117.29 – 67.80  Y -25.74%

Arctic Cat    P 15.41  C +1.78%  R 22.53 – 8.90  Y -22.11%

US Highland    P 0.0003  C -25%  R 0.43 – 0.0003  Y N/A

Confederate    P 0.04  C -14.89%  R 0.33 – 0.04  Y -86.67%

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

 

CANADA (Canadian dollar)

BRP    P 26.30  C +0.65%  R 27.30 – 13.76  Y +13.26%

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 20.00  C -0.99%  R 23.90 – 19.80  Y -5.56%

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

 

VIETNAM (Hong Kong dollar)

VMEPH    P 0.43  C +6.17%  R 0.53 – 0.36  Y -10.42%

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

 

INDONESIA (rupiah)

Astra    P 8375  C N/A  R 8875 – 5700  Y +36.14%

Indomobil    P 1320  C +0.38%  R 3000 – 1250  Y -55.25%

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 78.56  C -0.58%  R 104.85 – 63.38  Y -12.37%

Daimler    P 64.58  C -2.45%  R 85.50 – 50.83  Y -13.64%

VW    P 133.58  C -0.31%  R 146.50 – 106.65 Y +9.12%

KTM    P 4.33  C -1.7%  R 4.65 – 3.14  Y +30.15%

Piaggio    P 1.63  C -0.85%  R 2.50 – 1.45  Y -26.78%

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

 

PAKISTAN (Pakistani rupee)

Atlas Honda    P 595.00  C -0.93%  R 611.75 – 337.50  Y N/A

Pak Suzuki    P 578.00  C -0.3%  R 595.00 – 363.01  Y N/A

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

 

INDIA (rupee)

Hero    P 3359.85  C -0.06%  R 3740.00 – 2375.00  Y +32.46%

Bajaj    P 2802.35  C +0.21%  R 3122.00 – 2171.95  Y +14.09%

TVS    P 395.90  C +0.73%  R 401.80 – 240.90  Y +59.57% 

Eicher    P 25,122.15  C +0.53%  R 26,641.30 – 14,800.00  Y +39.11%

Mahindra    P 1326.75  C -0.05%  R 1508.95 – 1091.25  Y +7.32%

Maharashtra    P 1960.75  C -0.53%  R 2170.00 – 989.20  Y +96.51%

Scooters India    P 41.20  C -0.12%  R 44.85 – 22.65  Y +40.61%

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 3097  C -0.06%  R 4142 – 2417  Y -21.54%

Yamaha    P 2227  C +0.72%  R 3045 – 1409  Y -17.61%

Suzuki    P 3649  C +2.01%  R 4103 – 2450  Y -8.16%

Kawasaki    P 298  C +0.34%  R 502 – 257  Y -36.92%

 

CHINA (yuan)

Qianjiang    P 18.70  C -0.64%  R 19.88 – 6.71  Y +118.97%

Zongshen    P 10.27  C -0.29%  R 18.20 – 8.08  Y -25.89%  

Sundiro    P 8.92  C -1.98%  R 9.94 – 5.61  Y +33.07%

Jialing    P 8.60  C -2.05%  R 10.99 – 5.67  Y +1.9%

Lifan    P 9.65  C -0.72%  R 19.47 – 8.05  Y -26.77%

Loncin    P 20.04  C +0.8%  R 25.52 – 14.80  Y +7.3%

Linhai    P 13.37  C -1.55%  R 14.71 – 8.41  Y N/A

GAG    P 22.44  C +1.36%  R 26.27 – 18.10  Y N/A [Trading suspended]

 

CHINA (Hong Kong dollar)

Jianshe    P 14.46  C +0.42%  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 6.90  C -0.72%  R 7.52 – 6.48  Y -0.48%

Hong Leong    P 9.40  C -0.84%  R 9.80 – 5.25  Y +64.77%

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

 

SOUTH KOREA (won)

KR    P 1005  C -0.5%  R 1770 – 905  Y -3.37%

Daelim    P 88,100  C +1.03%  R 94,300 – 62,000  Y +21.22%

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.)

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