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UBS Forecasts 2027 Recovery for Cycling and Apparel Sectors, Initiates Buy Ratings on Giant and Makalot
Consumer Durables · Recreational Products · economic_daily · 2026-09-27
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UBS projects a cyclical demand recovery for the cycling and apparel industries by 2027, highlighting positive outlooks for Giant and Makalot.
What Happened
Cycling Industry Outlook: UBS reports that the cycling sector is poised for a recovery, with Giant Manufacturing expected to benefit from a 10-15% growth in e-bike demand by 2027. Despite concerns over European market consolidation, Giant remains confident in its inventory management and the rebound of high-end road bike demand in China.
Apparel Sector Momentum: Makalot Industrial is expected to see a rise in average selling prices by 5-7% in the fourth quarter, driven by favorable product mix and urgent orders. UBS maintains a positive view on the company's margin expansion, noting a strong dividend yield of 7% and setting a target price of NT$330.
Retail Performance Assessment: UBS maintains a neutral rating on President Chain Store Corp with a target price of NT$222. While store expansion supports revenue growth, rising operational costs and depreciation from new logistics centers are expected to cap improvements in operating margins.
Strategic Growth Cycle: Following the UBS Taiwan Summit, analysts identified 2027 as a pivotal year for both the cycling and apparel industries. Potential easing of geopolitical tensions could provide additional upside for these companies, reinforcing the firm's optimistic long-term outlook for these non-tech sectors.