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Bicycle Giants Giant and Merida See Earnings Recovery Amid Market Rebound
Consumer Durables · Recreational Products · economic_daily · 2026-08-24
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Major bicycle manufacturers Giant and Merida are showing signs of operational recovery as demand in Europe and China improves, prompting analysts to upgrade their outlooks.
What Happened
Giant's Operational Recovery: Giant successfully returned to profitability in the second quarter, with core earnings meeting market expectations and gross margins showing significant improvement. Driven by a recovery in the European bicycle market and strengthening demand in China, the company has resumed its growth trajectory with a positive outlook for the coming quarters.
Giant's Earnings Forecast: Institutional analysts remain optimistic about Giant's future, projecting an EPS of 3.9 TWD for this year, representing a 115% year-over-year increase. Looking further ahead, analysts expect the company's profitability to continue its upward trend, with EPS forecasted to reach 6.3 TWD by 2027, a 60% increase.
Merida's Performance Analysis: Although Merida's bottom line was temporarily impacted by conservative tax provisions at its subsidiary SBC, its core business performance remained strong, with second-quarter gross margins and operating profits exceeding expectations. Sales momentum in both China and Europe continues to recover, highlighting the resilience of its core operations.
Merida's Earnings Outlook: Analysts estimate Merida's EPS for this year at 4.9 TWD, a 24% increase, and maintain a positive long-term growth outlook. By 2027, the company's EPS is projected to rise to 6.1 TWD, reflecting a 25% growth rate and signaling strong confidence in the bicycle sector's recovery.