Taipei, Nov.1, 2012 (CENS) – Taiwan’s two major bike makers, Merida Bikes and Giant Global Group, enjoyed booming revenues in the third quarter, with Merida’s earning per share (EPS) reaching NT$2.43 (US$0.081), a new high; and Giant’s EPS hitting NT$2.35 (US$0.0783). The two bike manufacturers surprisingly bucked the trend of the gloomy global economy with modest growths.
Due to booming season, Merida declared after-tax profits of NT$1.552 billion (US$51.73 million) in the first three quarters, rising 22.86% year on year (YoY) from NT$1.263 billion (US$42.1 million), with after-tax EPS of NT$5.45 (US$0.181).
Moreover, the firm’s combined revenues totaled NT$17.546 billion
(US$584.86 million) in the first nine months, increasing 20.45% YoY, to which the firm attributes rising demand in China that generated sales revenue growth of 77% YoY.
Giant Group’s combined revenues reached NT$14.683 billion (US$489.43 million) in the third quarter, rising 10% quarter on quarter (QoQ); and its after-tax profits hit NT$882 million (US$29.4 million), increasing 15% QoQ. The firm declared after-tax profits of NT$2.314 billion (US$77.13 million) in the first three quarters, with after-tax EPS of NT$6.17 (US$0.2056).
With burgeoning sales in China, Giant Group’s sales volumes reached 5.77 million units in the first three quarters, surging 30% YoY, with combined revenues of NT$40.815 billion (US$1.3605 billion), up an annual 14.6%, and pre-tax profits of NT$3.193 billion (US$106.43 million), rising 1.5% YoY.
Encouraged by rising demand of mid- and high-end bikes in China, both bike makers focus on development of sales channels and product capacity expansion there. For instance, Giant Group plans to double output of plants in Kunshan, Tianjin, and Chengdu; while Merida is setting up a factory in Eastern China to come online the next third quarter.
(by Renee Chen)