Bike Industry Share Prices Surge in 2020
Perhaps unsurprisingly given the huge covid induced increase in demand for bicycles and related products, 2020 was a banner year for share prices of those bike companies who are listed on stock exchanges.
Here is a summary of some of the better performers:
| Company | Stock Exchange | Main Product/Activity | Change in Share Price |
|---|---|---|---|
| Bafang Electric | Shanghai | Ebike drive systems | 81.6% |
| Dorel Industries | Toronto | Cannondale, Mongoose | 136.7% |
| Fox Factory | New York | MTB suspension | 52.2% |
| Giant | Taipei | Giant, Liv, Momentum | 29.1% |
| Ideal Bike Corp | Taipei | Multi Brand Manufacturer | 11% |
| KMC | Taipei | Chains | 10.7% |
| Lee Chi | Taipei | Components | 56.8% |
| Merida | Taipei | Merida, Specialized (part) | 33.7% |
| MIPS | Stockholm | Helmet safety system | 159.6% |
| Peloton | New York | Indoor Trainer bikes | 395.8% |
| Shimano | Tokyo | Components | 35.5% |
| Sun Race Sturmey-Archer | Taipei | Components | 90.6% |
| Thule | Stockholm | Racks | 41.8% |
| Vista Outdoor | New York | Bell, Giro, CamelBak etc | 220.6% |
Most stocks worldwide fell during the first onset of the coronavirus, particularly during March 2020, so if you’d timed your purchase perfectly in around late March or April, then your percentage gain in the subsequent eight or nine months would have been even larger than the numbers in the table above.
These stunning returns came at the same time as interest rates paid on savings, bonds and other investments fell to record lows. It’s all well and good reflecting on this in hindsight, because the reality is that most of us did not buy any bike industry shares at that time, so we’ll have to keep working in our day jobs for a while longer…
Meanwhile in Australia, Bike Exchange (ASX code BEX) has traded in a very narrow range since it launched on the Australian Stock Exchange in early February. At the time of writing the shares were trading at 24 cents giving the company a market capitalisation of $70.31 million. This was down two cents from their float price on Tuesday 9th February of 26 cents.
The only other bicycle industry company listed on the ASX that we’re aware of is Fly6 and Fly12 video camera light brand Cycliq (ASX code CYQ) whose shares are trading at 0.3 cents (three tenths of one cent). For the financial year to 30th June 2020 Cycliq made sales of $3.87 million but for a net loss of $1.43 million.
The table for this article was compiled by freelance bike industry journalist Jo Beckendorff and previously published in both Outdoor Compass magazine and Bicycle Retailer & Industry News.