SAI Posts Robust 1Q25 Results with EPS of NT$1.53; Triple-Margin Growth and Strategic Advances in Recycled Aluminum (RESAICAL®) Drive Future Momentum

2025/05/08, Yunlin, Taiwan

Global automotive wheel industry leader SuperAlloy Industrial Co., Ltd. (SAI, 1563 TT) announced its operating results for the first quarter of 2025 following a meeting of its Board of Directors. For 1Q25, SAI reported consolidated revenue of NT$1.92 billion, a slight year-over-year decrease of 1.9%. However, thanks to an optimized order structure, improved production process, and stringent cost control, the Company posted operating income of NT$299 million, up 9.9% YoY. Net income attributable to the parent company was NT$354 million, representing a 42% YoY increase. EPS after tax came in at NT$1.53, a 30.8% YoY improvement. This marks a strong single-quarter performance.

SAI noted that although the overall revenue performance in the first quarter decreased compared with the same period last year. However, the Company has been proactively adjusting its product structure in recent years and has strengthened order momentum for custom wheels made with RESAICAL® recycled aluminum. In 1Q25, the overall usage of recycled aluminum increased to 40%, up six percentage points from the same period last year. Meanwhile, internal efficiency improvements, optimized workforce allocation, and effective cost control contributed to SAI delivering a record-high quarterly profit. 1Q25 gross margin, operating margin, and net margin after tax reached 28.4%, 15.6%, and 18.5%, respectively—each showing sequential and year-over-year improvement. This aligns with the Company’s 2025 goal of reaching a 15–20% operating profit margin.

SAI also announced April 2025 consolidated revenue of NT$563 million, a 17.54% decline from March’s NT$683 million and a 9.21% decrease from NT$620 million in April last year. Cumulative revenue for the first four months of 2025 was NT$2.48 billion, down 3.62% from NT$2.58 billion in the same period last year.

SAI acknowledged the challenges posed by global economic and geopolitical uncertainties, inflationary pressures, and weaker end-market demand. The global auto industry is under pressure, prompting automakers to adopt a more cautious approach toward new model development and launches. Regarding the potential impact of a renewed U.S. tariff policy under Donald Trump, SAI clarified that its wheel products are primarily exported to Europe, with the Americas accounting for just 13% of revenue—mostly traded under FOB (Free on Board) terms. Internal assessments estimate that only about 7% of revenue would be directly affected by such tariffs. Moreover, wheels typically account for just around 2% of a vehicle’s total value, so the impact of price adjustments on the end-user is expected to be limited. Nevertheless, SAI is closely monitoring policy developments and maintaining close communication with clients to prepare response strategies. Most automaker clients are continuing with their original ordering and sales plans. Looking forward, SAI remains committed to deepening collaborations with global car manufacturers, enhancing its R&D and manufacturing processes, and maintaining flexibility in cost and supply chain management to respond effectively to market dynamics and prepare for a future market rebound.

Looking ahead to 2025, SAI maintains a cautiously optimistic outlook. The Company is continuing its transformation into a comprehensive aluminum solutions provider, while solidifying its core business and expanding into new aluminum applications. Currently, SAI is undergoing sample validation for its aluminum materials used in the semiconductor industry. Meanwhile, equipment specifications are being finalized for its second smelting plant, which is scheduled for completion in 2Q26. The new facility is expected to add around 100,000 metric tons of annual capacity, laying a solid foundation for SAI’s future growth.

SAI 1Q25 Income Statement                              Unit: NT$ million; %

Monthly Consolidated Revenue                                Unit: NT$ million; %