Bike Travel Boosted by Virus Adds $5.6 Billion to Shimano Stock

  • Shares surge to a record on anticipation of a bicycle boom
  • CEO says sees recovery later this year, China as a bright spot
DURA-ACE R9170, Shimano’s component for road race bicycle.Source: Shimano Inc.
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Shimano Inc., a 99-year-old Japanese maker of brakes, gears and components, is poised to take advantage of the global surge in demand for bicycles across the globe as people embrace new modes of transportation due to the coronavirus pandemic.

As the provider of parts to Giant Manufacturing Co., Merida Industry Co. and other brands, Shimano commands a dominant presence in the global market for bicycle components. That gives Shimano’s Chief Executive Officer Yozo Shimano, 71, clear visibility into demand, which is picking up across the globe.