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Share prices

11/11/2019

A snapshot of global bike and ATV industry share performance at the trading week closure on Friday 8 November 2019. BDN financial editor Roger Willis reports.
   
American investors never seem to get bored with generally unsubstantiated rumours about the trade stand-off between Washington and Beijing. Hence another flip-flop week, this time testing the veracity of claims that a deal on progressive tariff reduction by both sides was about to be inked. When this proposition was initially floated, Wall Street made strong early gains. Then an absence of hard factual support soured confidence and stocks fell midweek. Upbeat remarks from Chinese state media subsequently boosted indices into recovering on Thursday. And finally President Trump denied that he had agreed to anything on Friday, flattening sentiment once again.

Nevertheless, the sum of all these machinations saw the Dow Jones Industrial Average and S&P 500 close on respective 1.2% and 0.9% weekly improvements. US powersport shares didn’t follow slavishly. After dipping on Wednesday, Harley-Davidson bounced back to finish almost flat with a marginal 0.2% rise. Polaris, on the other hand, benefited mightily, stacking on 4.4%. Textron dropped by 1.2%. Harley might have fared worse but ground-breaking new adventure and streetfighter models unveiled during the week helped to save its bacon.

Rumour-mongering on this subject infected European markets too, relegating some solidly bad news on stumbling eurozone GDP growth and declining German industrial production to the back-burner. Frankfurt’s Xetra Dax market index rose by 2.1%, with investors particularly enamoured by the prospects of a tariff-free future for Teutonic automotive giants.

Volkswagen climbed by 4.9%. BMW did much better, surging upwards by 8.1% thanks to a well-received quarterly earnings statement. In adjacent Austria, Pierer Mobility added 2%. Southern Europe was equally bullish and the Borsa Italiana’s MIB index in Milan put on 2.6%. Energica raced ahead of the market, 4.5% up. However, Piaggio retreated from recent gains, 1% down.

The Japanese, who have just signed a limited trade deal with America (avoiding quotas on car exports but not tariffs) shared the mood. Tokyo’s Nikkei 225 index enjoyed a 2.4% hike. Honda, a significant player in the US car market, was rewarded by a 4% share price lift. Lacklustre half-yearly results for both its car and motorcycle divisions, revealed on Friday, came too late to spoil the party. Kawasaki and Yamaha copped respective 3.1% and 2.5% increases. Suzuki was a loser, though, falling by 4.2%. Lamentable half-year performance figures for its care and bike operations, announced on Tuesday, were responsible.

While most of the world was welcoming a potential thaw in Sino-US trade relations, the Chinese clearly had their doubts. Shanghai’s SSE Composite index struggled for traction, making only a 0.2% weekly advance. And muscular average share price growth of 11.6% for China’s ten listed motorcycle manufacturers presented a grand illusion. Seven of them were actually on the back foot. Biggest loser was CETC Energy, suffering a 9% plunge. Loncin, Lifan and Linhai respectively went backwards by 6.4%, 6% and 5.3%. This mystery was due to a pair of disruptive trend-buckers. CFMoto, which is emerging as a global contender, boasted a stratospheric 22.9% gain. And Benelli parent Qianjiang, also now a worldwide exporter of note, wasn’t far behind with 17.2%.

Although Mumbai’s BSE Sensex 30 edged past a 40,000-point record in the final days of October, its latest weekly rise was just 0.4%. And apart from Indian capital Delhi being locked down by toxic smog, a distinct hangover from recent Diwali celebrations has affected India’s bike producers. Presumably, Diwali-inspired retail sales growth wasn’t up to expectations. Market leader Hero MotoCorp lost 2.2% and TVS was 3.6% down. Mahindra and Eicher posted respective 1.7% and 1.3% retreats. Sole major-league positivity was reserved for Bajaj, exactly matching the index on a modest 0.4% increase.

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

USA (US dollar)

Harley-Davidson    P 39.39  C +0.36%  R 43.69 - 30.17  Y +0.89%
Polaris    P 103.44  C +0.05%  R 104.25 - 70.27  Y +16.99%
Textron    P 46.61  C -1.1%  R 58.00 - 42.30  Y -17.93%
Curtiss    P 0.15  C N/A  R 0.50 - 0.07  Y -70%

Notes: Polaris makes Indian bikes, ATVs, snowmobiles, quadricycles and EVs. Textron produces own-brand ATVs and Arctic Cat snowmobiles. Curtiss Motorcycles, formerly Confederate Motors, makes limited-edition cruisers.

CANADA (Canadian dollar)

BRP    P 60.41  C -0.07%  R 60.94 - 32.34  Y +20.07%

Notes: Bombardier Recreational Products makes Can-Am ATVs and road trikes, Ski-Doo snowmobiles, Sea-Doo PWC and Rotax proprietary engines.

TAIWAN (Taiwanese dollar)

SYM    P 22.40  C +0.67%  R 23.50 - 19.40  Y +19.3%

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

VIETNAM (Hong Kong dollar)

VMEPH    0.23  C -0.44%  R 0.36 - 0.20  Y -36.06%

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

INDONESIA (rupiah)

Astra    P 6625  C -1.49%  R 8775 - 6250  Y -16.81%
Indomobil    P 1235  C -1.59%  R 3570 - 1215  Y -41.91%

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 75.01  C +1.11%  R 78.30 - 57.99  Y +7.44%
VW    P 180.95  C -0.6%  R 182.55 - 134.30  Y +30.38%
Pierer    P 50.00  C +2.04  R 60.20 - 45.20  Y -16.19%
Piaggio    P 2.86  C -0.83%  R 2.99 - 1.71  Y +63.4%
Energica    P 2.34  C N/A  R 3.06 - 2.10  Y -19.59%

Notes:  Volkswagen Group owns Ducati. Pierer Mobility owns KTM, Husqvarna and GasGas. Energica Motor is an Italian electric superbike manufacturer.

PAKISTAN (Pakistani rupee)

Atlas Honda    P 318.35  C +1.06%  R 450.00 - 290.00  Y N/A
Pak Suzuki    P 175.17  C -0.24%  R 340.41 - 148.79  Y N/A

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

INDIA (rupee)

Hero    P 2646.95  C -0.52%  R 3382.70 - 2225.60  Y -5.45%
Bajaj    P 3245.55  C -0.62%  R 3289.50 - 2400.00  Y +23.21%
TVS    P 452.40  C +0.69%  R 594.00 - 338.25  Y -17.87%  
Eicher    P 21,689.65  C +1.24%  R 25,350.00 - 15,196.95  Y -3.51%
Mahindra    P 580.00  C -0.06%  R 814.00 - 502.55  Y -25.81%  
Maharashtra    P 4913.95  C +0.89%  R 4950.00 - 2345.00  Y +98.62%
Scooters India    P 43.50  C -4.92%  R 50.55 - 21.20  Y +34.47%

Notes: Hero MotoCorp is India’s largest indigenous bike manufacturer. Bajaj has a major shareholding in KTM and contractual manufacturing ties with it. TVS is an own-brand manufacturer and BMW Motorrad contractor. Eicher makes the Royal Enfield brand. Mahindra & Mahindra has an eponymous bike range, recently became sole proprietor of French scooter brand Peugeot and owns formerly British BSA and branding rights for Czech Jawa. Maharashtra Scooters assembles CKD scooter kits sourced from Bajaj. Scooters India makes Vikram three-wheeled taxis and light trucks.

JAPAN (yen)

Honda    P 30725  C +1.92%  R 3300 - 2412  Y -2.12%
Yamaha    P 2192  C -0.27%  R 2507 - 1657  Y -0.52%
Suzuki    P 5052  C -2.17%  R 5986 - 3501  Y -4.46%
Kawasaki    P 2595  C +0.31%  R 2980 - 1979  Y -1.98%

CHINA (yuan)

Qianjiang    P 12.35  C +2.07%  R 13.10 - 8.39  Y +31.52%
Zongshen    P 5.48  C -0.18%  R 10.57 - 4.22  Y +17.65%   
Sundiro    P 2.17  C N/A  R 4.44 - 1.74  Y -23.59%
CETC    P 5.15  C -0.19%  R 8.12 - 4.27  Y +15.73%
Lifan    P 2.80  C -0.71%  R 9.65 - 2.75  Y -31.03%
Loncin    P 3.36  C -4.82%  R 5.75 - 3.25  Y -20.75%
Linhai    P 6.55  C -0.15%  R 10.26 - 5.28  Y +7.73%
GAG    P 11.66  C +1.13%  R 15.00 - 10.11  Y +7.95%
CFMoto    P 36.32  C -0.66%  R 37.94 - 15.13  Y +126.33%

CHINA (Hong Kong dollar)

Jianshe    P 4.40  C -0.68%  R 8.41 - 4.20  Y -46.86%

Notes: Qianjiang owns the Keeway and Benelli brands and is a contract manufacturer for Harley-Davidson. Zongshen makes own-brand bikes and proprietary engines, including a 650cc motor licensed from Norton, and has JV partnerships with Piaggio, (scooters), and Harley-Davidson (parts). Sundiro is a Honda JV partner. CETC Energy makes Jialing-branded bikes using Honda licensed technology, lithium-ion batteries and pedelecs. Lifan makes own-brand bikes. Loncin is a Kawasaki JV partner, OEM engine contractor to BMW Motorrad and MV Agusta JV partner. Linhai and Jianshe are Yamaha JV partners. Guangzhou Automobile Group (GAG) is the parent of Honda JV partner and own-brand bike manufacturer Wuyang. CFMoto makes bikes and ATVs, exporting to the UK, and has a JV partnership with KTM.

MALAYSIA (ringgit)

Oriental Holdings    P 6.49  C -0.15%  R 6.67 - 5.74  Y +15.39%
Hong Leong    P 10.70  C +0.75%  R 11.60 - 8.34  Y +6.65%

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

SOUTH KOREA (won)

KR    P 493  C -0.2%  R 619 - 460  Y -7.33%
Daelim    P 93,300  C +0.11%  R 122,500 - 76,800  Y +22.85%

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.)