SAI Reports 3Q24 Profitability Increased Year-over-Year; Accelerating Non-Wheels Business Expansion, Aiming to Achieve a 40% Revenue Share Within Three Years.
2024/11/05, Yunlin, Taiwan
Global automotive wheel industry leader SuperAlloy Industrial Co., Ltd. (SAI, 1563 TT) announces 3Q24 operational results following board meeting today. Consolidated revenue of 3Q24 was NT$1.718 billion, a year-on-year decrease of 7.6%. Net income attributable to the parent company after tax was NT$189 million, with an EPS of NT$0.79, representing annual growth rates of 24.9% and 11.3%, respectively. For the first three quarters of 2024, cumulative consolidated revenue reached NT$5.546 billion, operating profit was NT$697 million, and net income attributable to the parent company after tax was NT$602 million, with an EPS of NT$2.66.
SAI stated that the third quarter is traditionally a low season for the automotive industry due to summer vacation, and certain new model orders experienced deferred shipments. This caused a slower performance in customized wheel shipments compared to the second quarter. However, due to SAI’s efforts to optimize order portfolio, improve production efficiency, and strictly control costs and expenses, combined with a 40% increase in the production of recycled aluminum wheels, the company achieved exceptional results across its three profitability margins with a five-percentage-point rise in gross profit margin from 21% to 26%, operating margin increase from 9% to 10%, and net profit margin attributable to the parent company up three percentage points to 11%.
Observing the rising competition in the European and Chinese markets for new energy vehicles, SAI noted factors such as the EU’s high tariffs on Chinese-made electric vehicles and the impact of increased competition on German luxury vehicles in China. According to the latest data from the China Association of Automobile Manufacturers, imported car sales in the first nine months of this year totaled 481,800 units, down 13.5% year-over-year. Among the top 10 imported brands, only Lexus and Toyota achieved positive annual growth rates. This trend suggests a potential reshuffling in the global luxury car market based on sales performance in China. SAI is closely monitoring market dynamics and maintaining close communication with major brand clients. The company continues to align with clients’ new model development schedules, especially as Japanese clients set goals to increase the use of recycled aluminum wheels, which is helping SAI maintain strong order visibility.
Looking ahead to the fourth quarter of 2024, SAI maintains a cautiously optimistic outlook. The fourth quarter marks the traditional peak season for the automotive industry, with expectations that major clients’ demand will bring positive operational benefits to the company. SAI is advancing design, development, and mass production plans for recycled aluminum wheels across its luxury sports car models, aiming to create steady growth momentum for its RESAICAL® aluminum material. This aligns with the company’s goal to reach 50% recycled aluminum usage by 2025. Additionally, SAI is actively collaborating with major brand clients to develop new products using near-net-shape forging technology, which not only enhances operational efficiency but also simplifies production, reduces time and costs, and ultimately increases capacity utilization and asset turnover.
With increasing demand from major customers for SAI’s recycled aluminum wheels and net forming, along with SAI’s plan to build a second aluminum smelting plant to expand the diverse applications of recycled aluminum, the company aims to increase the revenue contribution from non-wheels from 15% to over 40% within three years. This will help SAI advance toward its long-term operating profit margin target of 15% to 20% by 2025.
(Appendix 1) Summary of SAI’s financial report for the third quarter of 2024: Unit: NT$ thousand; %.
| 3Q24 | 3Q23 | YoY | 1Q-3Q24 | 1Q-3Q23 | YoY | |
| Revenue | 1,717,938 | 1,858,965 | (7.6) | 5,545,633 | 5,573,485 | (0.5) |
| Operating profit | 167,320 | 167,580 | (0.2) | 697,083 | 482,187 | 44.6 |
| Net profit after tax-
Parent company owner |
188,976 | 151,316 | 24.9 | 602,174 | 452,885 | 33.0 |
| Earnings per share after tax (NT$) | 0.79 | 0.71 | 11.3 | 2.66 | 2.15 | 23.7 |
Note: The average number of outstanding shares was 226,185 thousand shares in the first three quarters of 2024 due to a cash capital increase, compared to an average of 210,364 thousand shares in the first three quarters of 2023.
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
