Merida Industry Co (美利達) is likely to see a rebound in revenue this year due to growing demand for electric bicycles in European markets, Mega International Investment Services Corp (兆豐國際投顧) said.
The bicycle maker is expected to see a 60.8 percent annual increase in its high-priced electric bikes sales this year, given increasing orders from European customers, Mega analyst Tzeng Cheng-wen (曾正文) wrote in a report dated Feb. 9.
Merida’s electric bike sales volume is expected to reach 150,000 units this year, boosting their contribution to nearly 30 percent of overall revenue, compared with last year’s 19.6 percent, the report said.
Revenue for the full year is expected to rise 12.1 percent to NT$25.05 billion (US$856.6 million) from NT$22.35 billion last year, as Merida should continue to benefit from its strategy, which aims to cement its position in Europe through electric model launches, it said.
Merida’s sales last year slid 2.08 percent from NT$22.83 billion the previous year, with shipments falling 22.5 percent to 1.24 million units.
Sales to Chinese customers plunged 44.7 percent annually to 260,000 units, due mainly to fierce price competition in China, despite a bike-sharing boom.
However, sales in European markets rose 19.4 percent year-on-year to 370,000 units, company data showed.
The brokerage also predicted that the company’s net profit would grow 46.7 percent annually to NT$1.88 billion this year from about NT$1.28 billion last year, with earnings per share increasing from NT$4.3 to NT$6.3.
Merida has yet to release its audited earnings results for last year.
The brokerage’s forecast came after Merida posted NT$1.88 billion in revenue for last month, up 36.15 percent from a year earlier, supported by robust customer demand.
The nation’s two other companies in global bicycle supply chains also posted annual increases in revenue for last month.
Giant Manufacturing Co (巨大機械), the nation’s largest bicycle manufacturer, reported that sales last month increased 7.31 percent to NT$4.44 billion, which the company mainly attributed to a significant growth in the electric bike sector.
Bicycle chain supplier KMC Kuei Meng International Inc (桂盟國際) saw its revenue soar 43.11 percent to NT$563.6 million from NT$393.81 million a year earlier, company data showed.
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