6 FEBRUARY: WEEKLY MOTORCYCLE INDUSTRY SHARE GUIDE

A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 6 February 2015.

After January’s investor gloom in the US, the S&P 500 index bounced back sharply this week, up by 3.8 per cent. Principal driver was news that American employers had created more than a quarter of a million new jobs in the past month, adding to steady employment growth for nearly a year and now reaching the wage inflation point where consumer spending will be boosted by higher individual earnings as well as more pay cheques. A slight rally in oil prices also cheered markets up. This helped Harley-Davidson stock recover from last week’s post-results spanking by disgruntled investors and lifted Polaris further.

Almost surprisingly, optimism generated by the US economy and oil prices also overwhelmed worries about Greece and its increasingly tenuous place in the eurozone. The FTSE Eurofirst 300 index put on almost two per cent to a seven-year high. Virtually all motorcycle-related shares responded accordingly. KTM was the only exception, dipping marginally as a profit-taker cashed in chips. Given the economic fragility of Italy, Piaggio’s share price was really impressive with a four per cent week-on-week rise.

In India, the BSE Sensex 30 declined on the back of various short-term economic and political uncertainties. Sensex-featured Hero and Bajaj suffered from this shift and every other bike producer followed suit in a downwards direction.

Similarly, China was beset with wider local issues as well as ongoing government snooping into stock market behaviour. The Shanghai Composite fell by more than three per cent, depressing share prices for most motorcycle manufacturers. Only Zongshen and Jianshe dodged that effect. 

The Japanese were nervous too, as reflected by a 0.15 per cent fall for Tokyo’s Nikkei 225 despite a surge towards the weekend. Honda was the only big-four member to buck that trend with a positive week. Suzuki was the worst performer by far — its share price plummeting by 8.4 per cent against the previous Friday’s close — on the back of disappointing nine-monthly financial results that included a significant reduction in overall net profit and a bigger operating loss from its motorcycle division.   

Price (P) High (H) Low (L) Change (C) 52-week range (R) One-year return (Y)  

USA (US dollar)

Harley-Davidson    P 64.21  H 64.36  L 63.274  C +1.69%  R 74.13 – 54.22  Y +0.46%

Polaris    P 148.50  H 149.71  L 146.92  C +0.38%  R 159.33 – 121.92  Y +20.97%

Arctic Cat    P 36.49  H 36.62  L 35.62  C +1.76%  R 50.10 – 26.00  Y -16.78%

US Highland    P 0.52  H 0.52  L 0.52  C N/A  R 0.60 – 0.13  Y N/A

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 21.54  H 21.98  L 21.34  C -0.97%  R 31.98 – 20.67  Y -23.13%

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 105.869  H 107.20  L 105.60  C -1.15%  R 108.35 – 74.74  Y +32.75%

Daimler    P 81.834  H 83.11  L 81.673  C -1.31%  R 84.69 – 55.10  Y +32.76%

Piaggio    P 2.81  H 2.858  L 2.80  C +0.36%  R 3.092 – 1.93  Y +24.78%

KTM    P 132.50  H 133.50  L 132.50  C -1.85%  R 141.00 – 70.50  Y +86.22%

VW    P 210.05  H 212.00  L 207.45  C +0.56%  R 212.00 – 147.35  Y +17.5%

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 2776.30  H 2855.00  L 2771.25  C -2.49%  R 3271.80 – 1907.00  Y +43.55%

Bajaj    P 2223.30  H 2257.80  L 2020.90  C -0.98%  R 2695.00 – 1809.15  Y +17.38%

TVS    P 293.60  H 295.85  L 285.20  C +0.03%  R 322.30 – 78.25  Y +273.7%  

Eicher    P 15,587.75  H 15,980.00  L 15,502.00  C -1.58%  R 16,895.00 – 4401.10  Y +254.11% 

Mahindra    P 1149.75  H 1181.90  L 1143.00  C -2.54%  R 1433.70 – 886.09  Y +29.9% 

Maharashtra    P 908.65  H 940.00  L 905.25  C -1.86%  R 1124.00 – 413.60  Y +150.02% 

Scooters India    P 33.20  H 34.35  L 32.10  C -1.63%  R 38.85 – 14.20  Y +122.82% 

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 an own-brand motorcycle range and a majority stake in French scooter brand Peugeot. 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 332.50  H 339.95  L 331.02  C +0.65%  R 355.57 – 209.00  Y N/A 

Pak Suzuki    P 433.50  H 437.00  L 428.06  C +1.25%  R 439.70 – 150.11  Y N/A

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

JAPAN (yen)

Honda    P 3784  H 3804.5  L 3742.5  C +1.2%  R 3848 – 3239  Y +5.36%

Yamaha    P 2403  H 2475  L 2388  C -0.62%  R 2655 – 1307  Y +85.26%

Suzuki    P 3439.5  H 3499.5  L 3411.5  C -5.83%  R 4041 – 2511  Y +32.18%

Kawasaki    P 552  H 566  L 551  C -1.78%  R 589 – 350  Y +33.17%

CHINA (yuan)

Qianjiang    P 6.28  H 6.40  L 6.26  C -1.26%  R 7.89 – 4.90  Y +14.18%

Zongshen    P 10.10  H 10.75  L 10.00  C -1.46%  R 10.82 – 4.30  Y +125.8%   

Sundiro    P 4.89  H 5.01  L 4.84  C -2%  R 5.95 – 3.61  Y +32.52%

Jialing    P 7.26  H 7.48  L 7.13  C -2.29%  R 9.28 – 3.25  Y +116.07%  

Lifan    P 8.98  H 9.08  L 8.90  C +0.34%  R 10.64 – 6.00  Y +49.57% 

Loncin    P 13.45  H 14.14  L 13.30  C -4.41%  R 18.81 – 8.24  Y +42.72%

Linhai    P 8.82  H 9.07  L 8.75  C -2.86%  R 11.39 – 5.04  Y +72.77%

CHINA (Hong Kong dollar)

Jianshe    P 7.58  H 7.70  L 7.58  C N/A  R 9.40 – 5.30  Y +38.07%  

Guangzhou Auto    P 7.03  H 7.12  L 6.99  C -0.99%  R 9.87 – 6.58  Y -5.93%

Notes: Qianjiang owns both the exported Keeway brand and the formerly Italian Benelli brand. 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 0.47  H 0.47  L 0.47  C -1.05%  R 0.69 – 0.40  Y -9.62%

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 27.40  H 27.55  L 27.30  C +0.18%  R 63.00 – 25.20  Y -41.33%

Notes: Sanyang Motor is the leading Taiwanese powered two-wheeler manufacturer through its widely-exported SYM brand. 

MALAYSIA (ringgit)

Oriental Holdings    P 6.97  H 7.01  L 6.96  C -0.71%  R 8.28 – 6.48  Y -9.84%

Hong Leong    P 4.42  H 4.45  L 4.40  C +0.45%  R 7.543 – 3.95  Y -14.14%

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 7600  H 7600  L 7450  C +0.66%  R 8100 – 6325  Y +20.02%

Indomobil    P 4000  H 4000  L 3975  C +0.63%  R 5300 – 3050  Y -23.49%

Notes: Astra International is a Honda JV partner. Its controlling shareholder is Jardine Matheson Holdings, a British-managed conglomerate domiciled in Hong Kong. Indomobil Sukses Internasional is a Suzuki motorcycle manufacturing and distribution JV partner, producing about 350,000 bikes annually.

SOUTH KOREA (won)

KR    P 1075  H 1095  L 1050  C +0.47%  R 1495 – 554  Y +62.14%

Daelim    P 57,800  H 58,400  L 57,100  C +0.17%  R 94,700 – 50,400  Y -33.64%

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.)