Giant Posts Earnings Per Share of NT$4.86 in First Quarter

The board of directors of Giant Manufacturing Co. (9921-TW) approved its first-quarter financial results on Wednesday (May 11), with net income after tax of NT$1.822 billion, the second-highest in a single quarter, and net income per share of NT$4.86. 

The Taiwan bicycle maker reported record revenue of NT$22.26 billion in the first quarter, with a gross margin of 22.91%, up 0.5 percentage points QoQ and down 1.5 percentage points YoY. After-tax net income was NT$1.822 billion, the second-highest in history, up 65.94% QoQ and 7.05% YoY, and net income per share was NT$4.86. 

A Giant executive pointed out that although the first-quarter revenue was a record high, it was under the pressure of rising material, labor and transportation costs and the impact of a higher percentage of OEM shipments. 

Gross profit margin was lower than the same period last year but remained at 22.9%, and operating income was slightly lower than the first quarter of 2021. However, thanks to the foreign exchange benefit from the appreciation of the U.S. dollar, profitability reached a record high. 

Giant’s revenue growth continued on the back of smoother shipment of OEM business in the first quarter and the sales performance of its brand portfolio in three major global markets in terms of original currencies. 

In the U.S., revenue was up double-digit year-over-year due to the rapid growth of E-bikes. In Europe, revenue was down 10% year-over-year due to the slow supply of E-bikes and the high base period of last year’s sales. Domestic sales in China were flat, and E-bike sales accounted for 26% of the Group’s revenue in the first quarter of 2022, remaining a critical growth driver for the company. 

Giant said that the demand for mid-to-high-end bicycles and E-bikes remains strong from the market perspective. Bikes are still popular among consumers as governments and people worldwide continue to raise awareness of health and environmental protection, the company added. 

With the launch of innovative products in the new year, the company is sure to continue to grow its business. Russia’s war in Ukraine, inflation, parts shortage, logistics, and the pandemic’s resurgence are expected to add to the business challenges. 

However, Giant suspended production at its Kunshan plant in early April to comply with the Chinese government’s epidemic prevention policy and resumed production on April 28. The plant will reportedly work overtime to catch up with the production capacity through vacation. Some shipments will be postponed to May, which will have no significant impact on the annual operation, the company said. 

Giant’s revenue for April 2022 was NT$5.846 billion, a decrease of 34.61% month-over-month and 15.42% year-over-year, and the cumulative revenue for the first four months of 2022 was NT$28.152 billion, an increase of 2.31% year-over-year. 

Giant’s net income for 2021 was NT$5.93 billion after tax, with a net income of NT$15.8 per share and a proposed cash dividend of NT$10 per share.