In January, the Taiwan Stock Exchange saw mixed fortunes for the country’s major bicycle makers. Although, the number one and two manufacturers in the country, which play a significant role in shaping the global bike industry, both saw revenues gain.
Leading bike manufacturer Giant Manufacturing saw its January revenue increase 7% year on year to reach NT$1.63 billion (US$54.4 million). Consolidated revenue gained 5% year on year to NT$3.25 billion (US$108.5 million).
Taiwan’s second-largest bicycle maker, Merida Industry saw a stronger gain with its January revenue up 27.65% year on year to reach NT$1.26 billion (US$41.9 million).
Ideal Bike Corp, the number three operator in Taiwan, reported January revenue of NT$199 million (US$6.6 million). This was down 32.8% year on year.
It was noted by institutional investors that both Giant and Merida managed to generate record revenue highs in 2010. For 2011, Giant expects to continue its growth trend. However, a number of factors, such as currency exchange rates and material prices will need to be closely monitored.
Giant also pointed out that the bicycle market in Taiwan has yet to fully recover from the global recession. Yet, the company noted that the US and Europe have been generating strong inventory requirements. This is due to demand from recreational cyclists and government backed cycling initiatives, amidst strong support for cycling’s environmental credentials.
In addition, Giant noted a continuation of rising sales in China. Here, average selling prices have risen – with an increasing focus on the bicycle for recreation rather than as a mainstream transportation tool.
www.giant-bicycles.com
www.merida-bikes.com
www.idealbike.com.tw
