31 JULY: WEEKLY MOTORCYCLE INDUSTRY SHARE PRICES

A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 31 July 2015.

As we noted last week, Chinese stock market recovery was showing signs of faltering. But at the beginning of this week far worse happened. Ill-considered government intervention — throwing good money after bad — failed ignominiously as the Shanghai exchange copped its second-biggest fall in history on Monday with the Composite index dropping by 8.5% in a single day.

China’s financial regulatory authority now imposes trading suspension on any listed company’s shares that gain or lose more than 10% in value on any given day. None of the six motorcycle manufacturers still floating actually suffered this fate (three remain suspended anyway — Zongshen, Linhai and Jianshe). However, Loncin foolishly chose to return to the market on Friday after being suspended for a sudden gain ten days earlier. It was promptly punished with a daily price collapse of exactly 10%, which may elicit another withdrawal when the market reopens. On a weekly basis, two others received a serious spanking as well. Honda JV partner Sundiro lost 14.9%  and Qianjiang was down by 9.8%. The rest were negative to a lesser degree.

Elsewhere, the picture was brighter. Against a background of strong US corporate earnings, weak wages growth data and rapid speculation about an imminent US interest rate rise, New York’s S&P 500 index climbed by a weekly 1.58%. Harley-Davidson didn’t keep up with that, adding 0.9%, while Polaris went the other way with a 1.9% fall.

In Europe, the Eurofirst 300 crept upwards by just 0.53% but the only bike-related stock on trend was BMW. Daimler and VW were marginally negative. KTM dropped more severely by 4.1%. And Piaggio finished up 5.5% in arrears after a sharp 3.27% fall on Friday as its fairly tawdry quarterly results were released. Japan’s Nikkei 225 was pretty flat too, up by only 0.2% week-on-week. Honda, Yamaha and Suzuki improved while Kawasaki fell, but all of them by minor degrees.

Moving back to emerging markets, Indian investors were in a generally pessimistic mood. Only Bajaj and Mahindra were smiling with positive weekly price movements. Worst decline was posted by Royal Enfield parent Eicher, dropping by 5.2%.        

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

USA (US dollar)

Harley-Davidson    P 58.30  C -0.49%  R 70.41 – 53.04  Y -4.15%

Polaris    P 137.06  C -0.01%  R 159.33 – 134.54  Y -5.4%

Arctic Cat    P 29.00  C -1.39%  R 39.72 – 26.00  Y -17.28%

US Highland    P 0.70  C N/A  R 1.05 – 0.13  Y +37.25%

Viper    P 0.0040  C +14.29%  R 0.01 – 0.0035  Y N/A

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 28.15  C -1.81%  R 29.80 – 20.67  Y +9.75%

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 22.40  C -1.32%  R 31.60 – 21.35  Y -20%

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

VIETNAM (Hong Kong dollar)

VMEPH    P 0.56  C -3.45%  R 0.85 – 0.40  Y +31.76%

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

INDONESIA (rupiah)

Astra    P 6650  C +1.14%  R 8575 – 6325  Y -11.22%

Indomobil    P 3800  C +11.44%  R 4600 – 3050  Y -16.06%

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 91.11  C +1.12%  R 123.75 – 74.74  Y +7.2%

Daimler    P 81.04  C +0.47%  R 96.07 – 55.10  Y +37.27%

VW    P 184.31  C -0.53%  R 254.99 – 147.35  Y +10.78%

KTM    P 114.95  C -0.04%  R 141.00 – 83.00  Y +17.09%

Piaggio    P 2.90  C -3.27%  R 3.18 – 1.93  Y +35.43%

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

PAKISTAN (Pakistani rupee)

Atlas Honda    P 340.00  C N/A  R 409.00 – 209.00  Y N/A

Pak Suzuki    P 420.00  C -0.02%  R 469.00 – 225.00  Y N/A

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

INDIA (rupee)

Hero    P 2682.70  C +3.97%  R 3271.80 – 2251.30  Y +5.67%

Bajaj    P 2525.30  C -0.08%  R 2695.00 – 1912.50  Y +25.16%

TVS    P 238.00  C +0.76%  R 322.30 – 145.00  Y +57.52% 

Eicher    P 19,071.20  C +0.23%  R 21,620.00 – 8380.40  Y +127.53%

Mahindra    P 1363.60  C +3.48%  R 1433.70 – 1102.00  Y +17.23%

Maharashtra    P 1119.55  C -0.3%  R 1200.00 – 681.25  Y +62.64%

Scooters India    P 24.60  C -4.65%  R 38.85 – 21.75  Y -15.17%

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. 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 3979.5  C +1.53%  R 4400 – 3239  Y +13.03%

Yamaha    P 2818  C +0.39%  R 3245 – 1702  Y +67.33%

Suzuki    P 4320.5  C +0.42%  R 4435 – 3011.5  Y +26.93%

Kawasaki    P 544  C -1.81%  R 647 – 369  Y +40.25%
 

CHINA (yuan)

Qianjiang    P 8.07  C +0.62%  R 17.11 – 5.55  Y +29.33%

Zongshen    P 17.25  C N/A  R 30.15 – 4.89  Y N/A  [Trading suspended]  

Sundiro    P 6.78  C -3.42%  R 12.69 – 4.32  Y +54.93%

Jialing    P 10.54  C -9.22%  R 16.34 – 5.27  Y +72.5% 

Lifan    P 14.18  C -4.25%  R 27.99 – 8.11  Y +59.62%

Loncin    P 26.01  C -10%  R 39.48 – 11.29  Y +124.32%

Linhai    P 13.37  C N/A  R 14.29 – 7.13  Y N/A [Trading suspended]

Guangzhou Auto    P 18.79  C -0.9%  R 21.38 – 7.63  Y +138.24%

CHINA (Hong Kong dollar)

Jianshe    P 11.38  C +5.27%  R 19.99 – 5.93  Y +91.26% [Trading suspended]

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 7.35  C +1.52%  R 7.94 – 6.46  Y -3.91%

Hong Leong    P 5.28  C +5.81%  R 7.54 – 3.95  Y -4.76%

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

SOUTH KOREA (won)

KR    P 1095  C +1.86%  R 1600 – 780  Y +8.96%

Daelim    P 74,400  C +3.05%  R 98,000 – 50,400  Y -20.22%

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.)