As it will soon become mandatory to wear a helmet when riding a motorcycle or an e-bike, the “helmet concept share” has caused a steep rise in helmet related companies’ stock value.
(A delivery man rides his e-bike on a street in Beijing. [Photo/dfic])
Starting from June 1, the “One Belt One Helmet” campaign will be officially implemented in a nationwide manner, according to a recent notice by the public security authorities. The “Belt” refers to safety belts for car drivers and passengers, while the “Helmet” refers to crash helmets.
(A shop in Jiangsu sells helmets. [Photo/dfic])
Since May 18, many individual stocks associated with helmets have seen a surge. As of the market close on May 19, the individual stocks of Nanjing Julong Science & Technology and Guoli Science and Technology have reached the trading limitfor two consecutive trading days. Both the two companies manufacture modified plastics, an important material for helmet production.
While raw material providers for helmet manufacturing has attracted many capital investors’ attention, the automation industry has also seen a boost. Yizumi, a Guangdong-based modeling equipment provider, has also seen a surge in its stock price for two days in a row. Its injection molding machine can be used for making safety helmets for e-bikes.
In the fever of buying helmet related stocks, some securities companies have even launched a “helmet concept section” in their trading software.
“The helmet concept share is a bit similar to the face mask concept share at the beginning of the epidemic outbreak, but unlike face masks, the helmet concept share will not be affected by the shortage of supplies due to the coronavirus,” said an analyst at a securities company. The surge of sales in helmets may give rise to plenty of discussion in the short run. But in the middle and long term, how the increase of sales may contribute to the companies’ performance still remains to be seen.
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