(Central News Agency reporter Pan Zhiyi, Taipei, 12th) During the epidemic, people avoided taking public transportation, which led to a boom in bicycle sales. However, after the epidemic, the inventory became too high, which became a pain for manufacturers. After more than a year of inventory digestion, the industry predicts that there is a chance that this year it will return to pre-epidemic levels.
During the epidemic, the demand for commuting and sports has driven bicycle sales. Brands and distributors have expanded their inventory scale, allowing bicycle manufacturers to make huge profits. Merida’s earnings per share from 2020 to 2022 will reach 13.36 yuan, 15.55 yuan and 11.34 yuan respectively, while Huge Machinery’s earnings per share will be 13.19 yuan. yuan, 15.81 yuan and 15.51 yuan, the highest profit period in the history of the bicycle industry.
As the impact of the epidemic has been significantly reduced and countries are gradually unblocking, bicycle factories will begin to face extreme pressure on inventory in the fourth quarter of 2022. Huge has just celebrated its 50th anniversary. A letter sent to supply chain manufacturers requesting a postponement of the ticket period was leaked, causing a storm of market confidence. Huge’s stock price fell to the limit the next day, and its market value evaporated by more than 7 billion yuan in a single day. Fortunately, it With urgent explanations and the support of suppliers, we have greatly overcome the crisis caused by high inventory.
The bicycle industry has experienced high inventory reduction for more than a year. Huge believes that the inventory pressure is expected to be relieved by the third quarter and return to 2019 levels. The inventory mainly comes from mid- to low-end bicycles in the European and American markets; however, China’s mid-to-high-end bicycles Demand for bicycle models is still growing against the trend, and even mid- to low-end models have no inventory pressure and are at normal levels.
Huge revealed that this year’s new car models will only be shipped in the second quarter.
Merida’s assessment is relatively optimistic. There is a chance that inventory will return to normal levels in the first quarter of this year. After all, the inventory of high-priced road cars has returned to normal levels, and even additional orders have been placed. However, mid- and low-end products still need to digest inventory, but this should not be delayed. By the second half of the year, the main reason is that last year’s postponed orders are expected to be shipped in March this year. The overall inventory in the second quarter should have the opportunity to be reduced and return to normal.
Merida explained that due to the reduction in production capacity last year, allowing channels to digest inventory has been effective, and it will continue to maintain the load reduction production capacity strategy in January and February this year. With the shipment of new car models in March, sales can slowly increase; due to the overall improvement, 2024 There is an opportunity to return to pre-epidemic levels after the inventory is digested.
High-end bicycle manufacturers clearly predict that industrial inventory depletion should conservatively fall in the third quarter. Among them, the inventory depletion pressure in the European and American markets should be greater than that in the Chinese market, and the Chinese market still has demand for mid-to-high-end products, and the Chinese channel has not yet There is inventory; but judging from the strength of market demand, the European and American markets are still the main market.
Ming believes that the current consumption power is still too weak, and the key to reducing bicycle inventory lies in the overall economy. The Russia-Ukraine war and the U.S. Federal Reserve (Fed) interest rate policy are all important factors affecting market buying sentiment. (Editors: Zhang Liangzhi, Zhang Junmao) 1130212
2024-02-12 02:10:15
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