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SAI Announces 2023 First Three Quarter Financial Report and November Consolidated Revenue

Entering 4Q23 peak season, SAI November revenue reached NT$ 811 million (+38.49% YoY), setting a new monthly record for the same period.

SAI 3Q23 Gross Profit Margin at 21.44%, Operating Profit Margin at 8.65%; After-tax EPS of NT$2.15

December 8, 2023, Yunlin

Global automotive wheel industry leader SuperAlloy Industrial Company Ltd. (SAI, 1563TT) announced today that its consolidated revenue for November 2023 reached NT$ 811 million. As the fourth quarter, known for its peak season in the automotive industry, continues to gain momentum, brand automakers are proactively stocking up for the Christmas holiday, driving strong demand for SAI’s custom wheels from major European, Japanese, and other brand automakers. Notably, monthly shipment performances for prominent brands such as Toyota, Jaguar, Porsche has reached a significant increase compared to last quarter and the same period, pushing the production capacity at the Yunlin plant to nearly full load and continuously increasing the utilization rate at the Pingtung plant. This has contributed to SAI achieving a remarkable monthly revenue growth of 13.54% in November, with a substantial year-on-year increase of 38.49%. The monthly revenue has surpassed the NT$8 billion mark, setting a record for historical monthly revenue. The cumulative consolidated revenue for the first 11 months of 2023 reached NT$7.098 billion (+ 20.13%YoY).

SAI also announced that its consolidated revenue for the first three quarters of 2023 reached NT$ 5.57 billion. Benefiting from a robust luxury car market and the accelerated clearance of accumulated new car orders and launches by various brand automakers, SAI experienced a significant increase in the delivery volume of custom wheels in the first three quarters of this year. Additionally, stable freight prices, the positive impact of the appreciation of the U.S. dollar mitigated the impact of increased financial costs due to rising interest rates. As a result, SAI reported an operating net profit of NT$ 482 million for the first three quarters of 2023. The after-tax attributable net profit to the parent company reached NT$453 million, with an earnings per share (EPS) of NT$ 2.15.

SAI stated that the strong delivery momentum from European and Japanese brands such as JLR, Porsche, and Toyota significantly boosted performance in the first three quarters of the year. The total wheel shipments during this period showed a notable growth of 16.31% compared to the same period last year. While increasing shipment volumes, SAI continues to enhance automation in production, optimize process efficiency, and effectively save raw material costs through the Pingtung smelting plant. With a steady increase in overall production capacity utilization, the gross profit margin for the first three quarters of 2023 increased from 17.75% in the same period last year to 21.44%. The operating profit margin, which was a net loss last year, has turned into a profit, reaching 8.65%. Both figures demonstrate outstanding performance with positive growth compared to the same period last year, highlighting the effectiveness of capacity efficiency and management.

According to the latest market research firm TrendForce, global sales of new energy vehicles reached 3.455 million units in the third quarter of this year. It is projected that by 2024, the sales of new energy vehicles are expected to grow by 32%, reaching a total of 17 million units. Notably, luxury car manufacturers BMW and Mercedes-Benz have recently collaborated in China to operate a supercharging network, jointly meeting the increasing demand for luxury charging services in the Chinese market. Looking ahead, there is a clear trend among brand manufacturers of supercars and luxury cars towards the new energy vehicle market. Based on SAI’s order performance so far, it is anticipated that revenue from new energy vehicles in 2024 could potentially reach 20%. The proportion of orders for new energy vehicles continues to increase, indicating SAI’s adaptability to the evolving product structure and overall changes in the new car market. The company is optimistic about the sustained growth in customer demand for new energy vehicle wheels in the future, creating a solid momentum for the company’s long-term stable operation.

Looking ahead to 2024, SAI expresses strong confidence in overall operational growth. With the consistent momentum of increased shipments from major customers, SAI aims to achieve a double-digit annual growth rate for custom wheel shipments. This positive trajectory may challenge historical records in future revenue performance. SAI continues to optimize product structures, improve process efficiency, increase shipments of recycled aluminum wheels, and implement other strategic initiatives. SAI aims to deliver an impressive performance report for the entire year. It is worth noting that SAI secondary aluminum product, RESAICAL®, has recently received recognition from the ” Circular Taiwan Network ” and has been featured as a case study in circular economy practices. SAI remains optimistic about the automotive industry’s sustained shift toward electric vehicles, new energy vehicles, and the ongoing trend of energy conservation and carbon reduction. SAI is committed to exploring, innovating, and developing possibilities for forged aluminum applications while fully engaging in a responsible aluminum value chain. SAI seeks to maximize the contribution of aluminum’s value and further promote SAI’s alignment with ESG sustainability development.

 

(Appendix 1) Summary of SAI financial report for the third quarter of 2023: Unit: NT$ thousand; %.

3Q23 3Q22 YoY (%) 9M23 9M22 YoY(%)
Revenue 1,858,965 1,474,968 26.03 5,573,485 4,815,200 15.75
Operating profit 167,580 (93,478) 482,187 (67,660)
Net profit after tax-

Parent company owner

151,316 211,628 -28.5 452,885 549,471 -17.58
Earnings per share after tax (NT$) 0.71 0.99 -28.28 2.15 2.57 -16.34

 

(Appendix 2) SAI November 2023 Consolidated Revenue Summary Table: Unit: NT$ thousand; %

annual

period

2023 2022 YOY
November 810,610 585,338 38.49
January-November 7,098,058 5,908,879 20.13

 

Contact:

Kelly Wang, SAI Investor Relation and Finance Manager

Phone: (05)551-2288 #204

E-mail: kelly.wang@superalloy.tw

 

Vicky, IR Trust Vice President

Phone: (02)2585-5701/0920-286136

E-mail: vicky@ir-trust.tw

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