TAICHUNG, Taiwan (BRAIN) — Giant Manufacturing Co. LTD enjoyed a 5.3% increase in first half revenue driven by growing demand for e-bikes in Europe as well as favorable exchange rates. Recovering sales in China also helped boost revenue. Giant reported its first half numbers Wednesday.
Revenue for the first half hit NT$30.71 billion ($978.4 million) with gross margins and operating margins increasing over last year, Giant reports. And it's e-bike manufacturing that's driving the growth.
The Taiwan company manufactured 290,000 bikes in the first six months of the year. That production contributed 28% of Giant's total revenue, or about NT$8.6 billion ($273.9 million). That also helped give Giant a significant boost in its reported after-tax income — up 60.1 % over last year to NT$1.72 billion ($54.8 million.) Earning per share also grew 25 % to NT$4.59 (15 cents)
"Giant saw healthy growth from all key markets with Europe taking the lead at double digit growth in revenue in the first half of 2019," the company said. That growth, up 40% from the same period as last year, was due mostly to e-bike sales.
In the U.S. market, Giant said sales were "healthy" for traditional bikes with e-bike sales revenue growth in the low teens for the first half. Giant offered no data on revenue, unit sales or a breakdown between traditional bikes and e-bikes.
As for the second half, Giant said it projects e-bike production and sales will continue its current momentum. The recent launch of its 2020 model year bikes were "well received" by Giant's retail network, which should boost sales as 2019 winds down through the fourth quarter.
Also driving hopes for sales is Giant's recent introduction of its new premium component brand, CADEX. The company said the new brand, which will focus on carbon wheelsets, tires and saddles, will target the high-end cycling enthusiast. CADEX components will be distributed through what Giant calls its "premium" cycling stores.
Giant Manufacturing's stock is traded on the Tapei Stock Exchange under the 9921.TW code.
