Merida Industry (9914) Q2 2026 earnings summary

Executive summary

• Revenue and profitability improved in 1H 2026, with EPS at 2.15 (Q1: 1.09, Q2: 1.06), driven by growth in Taiwan, China, and European subsidiaries.

• Market demand recovered, especially in Europe and China, leading to sales growth for subsidiaries.

• New product launches and expanded customization offerings supported premium market penetration.

Financial highlights

• Group revenue increased in 1H 2026, with subsidiaries in Europe and China showing notable sales growth.

• Gross margin improved to 18.2% in Q2 2026, up from 16.6% in Q1, due to a higher mix of new products and stable FX rates.

• Inventory levels have declined since 2024 and stabilized through mid-2026.

• Profitability improved YOY: Taiwan HQ +48%, China +39%, global sales companies +49%.

Outlook and guidance

• Market inventory destocking is nearly complete, with moderate growth expected as new models stimulate demand.

• Continued focus on launching new products and strengthening marketing to drive sales.

• 2026 is expected to mirror 2025 in terms of effective tax rate and regional profit distribution.