After the off-season, demand recovers; SAI reported September 2024 monthly revenue of NT$597mn with month-over-month growth rate of 4.22%. 2024/10/08, Yunlin, Taiwan
Global automotive wheel industry leader SuperAlloy Industrial Co., Ltd. (SAI, 1563 TT) reported its September, 2024, monthly consolidated revenue of NT$597 million (+4.22% MoM and -15.53% YoY). The consolidated revenue for January to September 2024 is NT$5.55 billion, a decrease of 0.5% from the same period last year’s NT$5.57 billion.
SAI indicated that the recovery in demand from major customers in the automotive industry after the traditional summer off-season has gradually increased shipments of customized rims. Notably, demand from luxury automotive brands such as JLR, AMG and BMW has rebounded significantly compared to the previous month. Additionally, shipments of recycled aluminum rims have risen in proportion from an average of 32% in the first two quarters to 40% in the third quarter. This performance indicates that SAI has maintained a steady revenue trend despite challenges from a sluggish economic environment, structural adjustments in the automotive market and slowing end demand.
Reducing carbon emissions in the automotive industry has become a core issue in the global response to climate change. The manufacturing and usage of vehicles generate significant amounts of carbon dioxide, prompting car manufacturers and their supply chains to actively seek carbon reduction methods. Key areas of focus include everything from parts manufacturing and material selection to transportation, all aimed at meeting carbon neutrality goals. Notably, automotive brands are increasingly utilizing recycled materials, such as recycled aluminum and sustainable interior materials, to further reduce the environmental impact of raw material production and decrease overall manufacturing carbon emissions. As carbon tax policies are gradually implemented, car manufacturers will adopt low-carbon technologies more extensively to ensure the competitiveness of their products in future markets. This trend is expected to create substantial business opportunities for SAI’s 100% recyclable recycled aluminum material, RESAICAL®, positioning SAI advantageously in the competitive automotive parts market.
Looking ahead to the fourth quarter of 2024, SAI maintains a cautiously optimistic outlook. In addition to deepening its core business in customized rims, SAI is exploring opportunities for collaboration with each customer to develop new rim models. The company is also expanding its order acquisition scope, including enhancing cooperation in the development of key automotive components with each customer. By utilizing the recycled aluminum material RESAICAL® to improve competitiveness and profitability, SAI plans to diversify its business to supply industries such as semiconductors, heavy electrical, aerospace, and E-bike. This initiative will further expand SAI’s customer base, reduce operational risks and enhance capacity through economies of scale, effectively strengthening SAI’s competitive advantage in the industry and supporting sustainable growth for the company in the future.
