Is the spring of bicycles coming soon? Merida and Giant surge strongly
After experiencing a lull, the stock prices of Merida and Giant have recently risen. Merida's stock price increased by over 7%, closing at NT$164, while Giant rose nearly 5%, closing at NT$148.5. Although inventory issues have eased in the third quarter of 2024, overall demand has not yet rebounded. Merida's revenue in December last year was NT$1.797 billion, a year-on-year increase of 17.6%; Giant's revenue was NT$4.11 billion, a year-on-year decrease of 1.43%. Looking ahead to 2025, both Giant and Merida hold an optimistic outlook for the European and American markets, but the prospects for the mainland China market still need to be observed
The bicycle industry has been quiet for a long time. Although American foreign capital remains conservative about the two bicycle giants, stock prices surged on the 6th, with Merida (9914) rising over 7% to close at NT$164, and Giant (9921) increasing nearly 5% to close at NT$148.5, leading the rise in the sports and leisure sector.
The inventory problem that has plagued the bicycle industry for nearly two years saw significant relief in the third quarter of 2024. However, due to the overall demand not rebounding quickly, stock price performance remains relatively weak. American foreign capital pointed out that sales in the U.S. market are recovering and at reasonable inventory levels, but inventory clearance and promotional activities are still ongoing in Europe and mainland China, with the market in mainland China further deteriorating in December last year.
Merida's revenue in December last year was NT$1.797 billion, a year-on-year increase of 17.6%, with total annual revenue of NT$29.647 billion, a year-on-year growth rate of 9.1%. In December last year, the shipment volume was 43,000 units, with traditional bicycles down 38% year-on-year, and electric bicycles shipped about 14,000 units, a year-on-year increase of 28%.
Merida had significant electric-assisted bicycle customer shipments delayed, starting production only on December 17 last year, which may not be included in that year's revenue. However, the revenue deferred to this year will have a positive effect on Merida's performance this year.
Giant's revenue in December last year was NT$4.11 billion, a year-on-year decrease of 1.43%; the total annual revenue was NT$71.255 billion, down 7.4% compared to the same period in 2023. Foreign capital indicated that Giant's sales in the European and American markets are growing due to ongoing inventory clearance and a low base, but sales of its own brand (OB) business in mainland China have declined, offsetting the recovery of OB business in Europe and the U.S.
Looking ahead to 2025, Giant believes that growth is expected in the three major markets of Europe, the U.S., and mainland China; Merida believes that due to low inventory levels, growth is expected in Europe and the U.S. in the new year, but the high base in the mainland market may lead to a decline, and the overall situation still needs to be observed
