We have orders in hand until July 2021. Luo Chao, general manager of Shanghai Phoenix import and Export Co., Ltd., told the securities times, domestic sales orders also increased during the epidemic period. Domestic orders surged in April. With the spread of overseas epidemic, overseas demand began to recover in June.
Li Qing, chairman of yiluda (Tianjin) Co., Ltd., which also focuses on bicycle export, told reporters, since this year, the order volume of bicycles has increased 10 times from June to September compared with last year, and the transaction volume is more than 13 times of the same period last year. At present, the order has been scheduled to April next year. The company does not dare to stop processing bicycles for a moment. The workers work overtime to more than 10 oclock every night, and look for other factories to process bicycles
According to the data of China manufacturing network, from January to may 2020, the two wheeled vehicle industry (including bicycles, motorcycles and electric vehicles) increased by 65%, of which bicycles increased by 171%.
In the first half of the year, bicycle exports to the United States grew better than expected among the top ten countries, with Vietnam and South Korea maintaining strong growth. Among them, 6.116 million vehicles were exported to the United States, with a year-on-year increase of 8.4%; 784000 vehicles were exported to Vietnam, with a year-on-year increase of 72.6%; and 734000 vehicles were exported to South Korea, with a year-on-year increase of 37.4%.
Bicycle exports continued to grow in the third quarter. According to the data of Alibaba international station, Gmv (total transaction volume) of bicycle industry increased by more than 100% for six consecutive months, and the order volume in October increased by 220% compared with last year.
However, there are still some pain points under the explosive orders. Luo luao admitted to reporters that the current difficulties are firstly the shortage of containers, the increase of transportation costs, and the impact on the delivery time of goods; secondly, the difficulty in recruitment is also a major pain point faced by the manufacturing industry in the post epidemic era. In addition, the appreciation of RMB puts relatively great pressure on domestic export enterprises.
The epidemic is just one of the reasons for the explosion
When the overseas epidemic situation has not been effectively controlled, home office has become the norm, and the home economy related products represented by furniture and household appliances have exploded. So why are bicycles being looted?
It is undeniable that behind the sustained recovery of the bicycle industry is the strong growth of the demand for electric bicycles. The main reasons are the development catalysis of industries such as takeout and sharing economy, and the change of peoples travel habits under the influence of the epidemic.
Luo told reporters that the epidemic may only be a stimulus, not the main reason. First of all, the epidemic situation affects the suspension of public transport, and the confined space of private cars is not conducive to epidemic prevention. Bicycles are the first choice for purchasing vehicles when they go out to save energy and reduce emissions. Secondly, governments all over the world see the need for bicycles. European and American countries subsidize the purchase of bicycles and the construction of bicycle lanes. In addition, in the past, some other countries also sold bicycles to big bicycle importing countries. Due to the stagnation of local productivity due to the epidemic, Chinas resumption of work and production has taken the lead in the world, and the whole world is importing bicycles from China. The most important thing is that European countries have their own bicycle culture and overseas consumers pursuit of health has greatly increased the demand for bicycles.
Statistics from the China Bicycle Association show that since the second quarter of this year, the bicycle industry has fully resumed its work and production. The export situation has continued to warm up, and the production and sales volume have increased. In June, 5.592 million bicycles were exported, with a year-on-year increase of 30.5%, and the export volume was 321 million US dollars, with a year-on-year increase of 38.8%; in May and June, the export volume kept double-digit growth month on month. In addition, in the first half of this year, the profit of electric bicycle enterprises above Designated Size reached 1.67 billion yuan, with a year-on-year increase of 31.6%. In June, the output of electric bicycles was 3.073 million, up 48.4% year-on-year, maintaining a rapid growth.
Growth or non short term trends
In the post epidemic era, some bicycle manufacturers who speculate and add orders to produce bicycles will return to rationality. However, we expect that after the widespread popularization of vaccines, it will take a long time for foreign countries to resume production, and the order volume in the coming year will not be reduced. In addition, it is likely that the explosion will continue until 2022. Luo said.
Data from the General Administration of customs also confirm this. After SARS in 2013, the export value of bicycles increased month on month in five of the six single quarters from the fourth quarter of 2013 to the first quarter of 2015. Among them, the export amount of bicycles reached 973 million US dollars in the first quarter of 2015, which remained a record high for five years, until the sudden increase in bicycle demand under the influence of this years epidemic situation was broken.
Secondly, China has a complete industrial chain from parts to vehicle assembly. Bicycles exported by China account for more than 70% of the world market share. Therefore, as long as there is market demand, Chinese bicycles and other products can be continuously supplied overseas. At present, Italy, France, Germany and other countries have launched travel subsidies or policies to encourage green travel. These countries are big countries in bicycle consumption. Therefore, the demand for bicycles is not only a short-term outbreak, but also a medium and long-term consumption trend. In particular, the better riding experience of electric bicycles in recent years has been more prominent.
Moreover, Chinas successful accession to RCEP is also expected to benefit bicycle exports. According to statista, the Asia Pacific region is the worlds largest E-bike market, accounting for 94.39% of the global market share. Western securities research report points out that RCEP is expected to further enhance the demand for electric bicycles.
It is worth noting that in the next few years, the domestic demand for bicycles, especially electric bicycles, will also increase steadily. After the implementation of the new national standard in 2019, the electric two wheeled vehicles were forced to be classified again, and the vehicles with excessive stock in various places need to be replaced with new national standard models. Therefore, the domestic electric bicycle market benefits from the trend of new vehicle replacement. In addition, with the increasing popularity of shared E-bike application scenarios, leading enterprises of shared travel are preparing to launch a new round of market competition, which will also bring increment to the domestic E-bike market. The increase of real-time distribution personnel driven by the development of industries such as takeout logistics and intra city distribution will also become a new growth point of demand for electric bicycles at present and in the next few years.
Outstanding performance of industrial chain companies
The bicycle market is booming, and the capital market has already been reflected. Wind bicycle index has been climbing since the second half of the year, and as of November 18, it has increased 46.48%. Among the constituent stocks, the new day shares have been the most outstanding, with the stock price rising 199.56% since June 1.
Xinri Co., Ltd. is an enterprise specialized in the R & D, production and sales of electric bicycles, electric mopeds, electric motorcycles and other electric two wheeled vehicles. It provides targeted products and services for group purchase customers such as takeout logistics, shared travel and intra city instant distribution.
More than 200 new stores will be opened in the first half of 2020. In the first three quarters of this year, the operating income of Xinri shares reached 4.356 billion yuan, an increase of 78.54% over the same period of last year; the net profit attributable to shareholders of listed companies was 124 million yuan, up 38.44% year on year.
Bicycle accessories manufacturers also benefit from the development of the industry. Xinlong health is an enterprise specializing in the R & D, production and sales of bicycle handlebars, risers, cushion pipes, shock absorbers and other self-propelled spare parts and sports fitness and rehabilitation equipment. Since the second half of the year, the stock price has nearly doubled.
It is reported that Xinlong health bicycle accessories business capacity is full, and some orders have been arranged to the second quarter of next year. According to the survey conducted by the company, the growth of bicycle accessories business this year is mainly due to the growth of overseas demand, while the demand for domestic traditional bicycle accessories has not changed much. At present, the companys orders in the fourth quarter are full, and some orders have been arranged in the first and second quarters of 2021, and they are still receiving orders.
It is specialized in the R & D, production and sales of electric scooter (i.e. electric scooter) motors and supporting electrical systems. Since the second quarter, the stock price of Bafen shares has increased nearly twice. In the first three quarters of this year, the companys operating revenue was 970 million yuan, up 10.19% year-on-year; the net profit attributable to shareholders of listed companies was 300 million yuan, up 28.06% year-on-year. In addition to the above three enterprises, the wind bicycle index constituent stocks also include Yongan hang, which is mainly engaged in public bicycle system, Shanghai Fenghuang, an old brand bicycle manufacturer, and Zhonglu Co., Ltd., a permanent brand bicycle manufacturer. All the six companies achieved positive growth in net profit in the first three quarters of this year. Among them, the net profit of Shanghai Fenghuang and Zhonglu shares increased by 191.46% and 136.65% respectively. Source: Securities Times editor in charge: Chen Hequn_ NB12679
It is specialized in the R & D, production and sales of electric scooter (i.e. electric scooter) motors and supporting electrical systems. Since the second quarter, the stock price of Bafen shares has increased nearly twice. In the first three quarters of this year, the companys operating revenue was 970 million yuan, up 10.19% year-on-year; the net profit attributable to shareholders of listed companies was 300 million yuan, up 28.06% year-on-year.