Leading bicycle manufacturer Giant Bicycle Inc has posted double digit earnings growth for the first three quarters of 2010. According to an investment analyst, this surge in earnings growth was in part due to lingering concerns over global warming.
This week Giant announced net earnings of NT$2.34 billion (US$76.46 million) for the first nine months of 2010. This was up 29.6% on the previous year period.
"Buying environment friendly products, like bicycles, has become a trend in the global market," said Tom Tang, Analyst at MasterLink Securities. "Giant is one of the beneficiaries of such a trend."
During the same nine month period, Giant had sales of NT$33.38 billion (US$1090 million on an equivalent exchange rate), up 12.3% year on year.
"Giant has become one of the favourites of foreign institutional investors. Foreign investors are very willing to hold the stock," Tang added. Foreign institutional investors now own around 50% of Giant’s shares.
According to Giant, while sales in its domestic market of Taiwan appeared to have slowed after a strong performance in 2009, its sales in overseas markets, including the United States, Europe, China, Japan, Australia and Canada, continued to grow.
A new subsidiary in South Korea, which commenced operations in 2009, also generated better than expected gains in earnings.
