Due to the Covid-related closures, the focus in the first quarter of 2021 was still very much on alternative mobility products. This shifted somewhat in the second quarter. Falling infection figures and rising economic data have provided a breath of fresh air. This is leading to a renewed focus on traditional stock values. After all, in Covid times, these were properly beaten down. For example, shares in the automotive sector fell to respective lows below their actual value. The stock market is currently reacting positively to a time without lockdowns and the current efforts of the automotive industry to make its contribution to the mobility revolution with electrification. Global bicycle stocks continue to cruise at great heights but did not perform as extraordinarily in Q2 as they did in the first three months of this year.
Q2 / 2021: 23 stocks up, 11 down
23 of our chart stocks ended the second quarter of the year (compared with the first) with gains. 19 of them continued to post double-digit growth, and only four posted single-digit gains. Some stocks failed to ride the wave in the second quarter. Four of the eleven stocks in our chart that lost ground saw double-digit declines, while seven saw only modest single-digit increases. That leaves us with one stock (Shanghai Phoenix) that was down $0.43 on June 30, the same as on March 31.
Bike industry discovers stock market; stock market discovers bike industry
The currently booming bicycle industry has discovered the stock market in its search for further growth capital. The interest is mutual: more and more investors have their eyes on the bicycle industry with its e-bike boom. Thus, further IPOs can be expected in the future. This quarter, we feature three new chart members that entered the stock market floor in Q2. After already welcoming the Australian-originated digital global marketplace BikeExchange in Q1 following its IPO in Feb. 2021, Bike24, HGears and USWE Sports have also joined the list.
German cycling and running e-commerce retailer Bike24 boarded the Frankfurt exchange floor in late June. With the financial injection behind it, it primarily wants to set the course for growth outside the DACH region. Fellow countryman HGears celebrated its stock market debut in May. The specialist for high-precision gears and components focuses on products for e-mobility applications. The additional capital will be used further to drive organic growth in the e-mobility business unit. This includes “increasing production capacity for e-bike and e- and hybrid vehicle parts, expanding research and development activities and partially repaying debt.” The third newcomer is the Swedish outdoor and sports brand USWE Sports. The company specializing in bounce-free backpacks and hydration packs for mountain biking, running, skiing, and motorsports also made its stock market debut in June.
New to our chart: Yadea, Youngone and Yucaipa
The data further above refers to the 32 chart members we mentioned in the first quarter, plus three new stocks added to our bike chart. First, we added two publicly traded companies (Yadea and Youngone) because they are increasing their investments in the growing bike market. Chinese e-bike giant Yadea has now discovered e-bikes – in addition to its huge e-scooter and e-moped portfolio. And Korean textile and apparel giant Youngone is not only well positioned in the global (OEM) bikewear sector but since 2015 has also been a majority shareholder in bike equipment supplier Scott Sports Group, which is also growing steadily. The Swiss group has strategically expanded its portfolio in recent years with various acquisitions.
Newly added is also the U.S.-based Yucaipa Acquisition Corporation. This shell company (or SPAC = Special Purpose Acquisition Company) already celebrated its debut on the New York Stock Exchange in August 2020. However, it has only now become known what hides behind this shell company without business operations: It is intended to assist the German online bicycle and sports retailer Signa Sports United (SSU) in a quick IPO on the U.S. stock exchange (following the acquisition of the Irish competitor Wiggle CRC announced in June of this year). If the SPAC deal closes, SSU will soon roll onto the trading floor (instead of the shell company now listed in our chart). All of this is expected to happen in the third quarter of 2021.
Bicycle IPOs off to a more down-to-earth start
A look at this year’s stock market debutants mentioned above shows that an IPO in the currently booming industry does not always have to be crowned with success: In late June, the shares of BikeExchange, HGears and USWE Sports were 11.5, 10.9 and 4.8 percent below their issue price, respectively. Only the Bike24 share – launched with an initial public offering issue price of €15.00 – was up 29.3 percent at €19.40 on June 30.
For more detailed information, please download the PDF below our infographic (the latter does not yet show the three newcomers, Bike24, HGears and USWE).
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