SAI Reports 1H24 EPS of NT$1.88, Up 29.66% YoY, Marking a Five-Year High in Profit
2024/08/08, Yunlin, Taiwan
Global automotive wheel industry leader SuperAlloy Industrial Co., Ltd. (SAI, 1563 TT) reported its 2Q24 financial results today. Consolidated revenue for the quarter decreased to NT$1.87 billion (-2.64% YoY) but net operating profit rose significantly to NT$258 million (+88.88% YoY). Net profit attributable to the parent company decreased to NT$164 million (-3.67% YoY) due to Japanese yen depreciation. EPS for the quarter was NT$0.72 (-12.2% YoY) due to a 6.79% increase in the average number of shares outstanding. For the first half of 2024, consolidated revenue grew to NT$3.83 billion (+3.05% YoY) and operating profit surged to NT$530 million (+68.39%YoY). Net profit attributable to the parent company reached NT$413 million (+37.02%YoY) with EPS NT$1.88 (+29.66%YoY). These results represent the highest profit in the past five years, with gross, operating, and net profit margins improving to 27%, 14%, and 11% YoY, respectively.
SAI attributes its strong performance in the first half of the year to robust order growth from luxury automotive brands, including Toyota, JLR, Porsche, BMW and Ferrari. This growth offset the decline in shipments from American brands. Revenue contributions from Japanese, European, American, and other clients were 20%, 61%, 12%, and 7%, respectively, with significant year-over-year increase of 83% and 12.9% from Japanese and European brands.
Additionally, the 1H24 proportion of recycled aluminum wheels increased from 26% to 32%, reflecting a growing focus on ESG principles. SAI’s recycled aluminum material, RESAICAL®, recently gained certification from Rolls-Royce and is now used by seven brands. Since luxury brands are shifting towards new energy vehicles to reduce carbon emissions, they require new projects to use green or recycled aluminum. SAI will introduce recycled aluminum into existing products for approved customers and expect recycled aluminum usage to reach 40% by year-end, boosting profitability.
Despite a slowdown in global passenger car sales, the luxury vehicle segment continues to outperform general automotive sales. According to the latest USD Analytics report on the luxury electric vehicle market, this sector is expected to grow at a compound annual growth rate (CAGR) of 12.9% from 2024 to 2032. Additionally, leading luxury car brands such as BMW, Mercedes and Audi have exited the price war in the China market, leading to a healthier luxury car sales environment. With the shift towards hybrid, electric and new energy vehicles, the automotive industry’s new vehicle structure is evolving, which is beneficial for SAI’s customized forged wheel sales.
Looking ahead to the second half of 2024, SAI remains cautiously optimistic. The company expects overall shipment volumes to exceed those of the first half of the year and anticipates maintaining a year-over-year revenue growth. SAI will focus on innovation in forged aluminum and maintaining a responsible aluminum value chain to support sustainability goals.
Lastly, SAI reported consolidated revenue of NT$547 million for July 2024, a 3.84% YoY decrease from NT$569 million last year. For January to July 2024, consolidated revenue totaled NT$4.38 billion, up 2.13% YoY from NT$4.28 billion in the previous year.
