Superalloy (SAI), the leading global automotive wheel rim manufacturer, has announced strong operational results for the second quarter and first half of 2024 following a board meeting.
In the first half of 2024, SAI benefited from steady order growth from luxury European and Japanese automotive brands such as Toyota, JLR, Porsche, BMW, and Ferrari, offsetting a decline in shipments from American brands.
The revenue breakdown for this period was 20% from Japanese brands, 61% from European brands, 12% from American brands, and 7% from other customers. Revenue from Japanese and European brands grew by 83% and 12.9%, respectively, compared to the same period in 2023.
Secondary aluminum wheels gain traction in luxury market
The proportion of secondary aluminum wheel rims in SAI's overall production increased from 26% in the first half of 2023 to 32% in 2024, reflecting the growing emphasis on ESG by automobile brands. This trend also benefits SAI's promotion of recycled aluminum materials. Recently, SAI's secondary aluminum received certification from Rolls-Royce and has been adopted by seven brand customers.
Luxury car brand customers continue to launch new energy vehicles and request reductions in their vehicles' carbon emissions. Besides requiring new projects to have quotes with green or secondary aluminum, SAI plans to continue integrating secondary aluminum into existing products for approved customers. By the end of 2024, the adoption rate of secondary aluminum is expected to rise to 40%, which will help sustain profitability growth.
Despite a slowdown in global sales of regular passenger vehicles, the growth rate of luxury car sales continues to outpace that of regular vehicles. According to the latest report by USD Analytics on the electric luxury car market, the market is projected to grow at a compound annual growth rate (CAGR) of 12.9% from 2024 to 2032.
Additionally, brands like BMW, Mercedes-Benz, and Audi have exited the price wars in the Chinese market, which is expected to bring the overall luxury car sales market back to a healthier state.
With the shift towards hybrid, electric, and new energy vehicles among luxury car brands, the new car structure of the overall automotive industry is gradually transforming. This trend is expected to boost the sales of SAI's customized wheel rims.
Looking ahead to the second half of the year, SAI remains cautiously optimistic, anticipating that overall shipment volumes will be better than the first half. The company aims to maintain year-over-year revenue growth for the entire year.
SAI will also continue to explore, innovate, and develop new application possibilities related to forged aluminum, fully committing to a responsible aluminum value chain to maximize aluminum's value contribution and further align with ESG sustainable development goals.
SAI's consolidated revenue in July 2024 was NT$547 million (approx. US$16.86 million), down 3.84% from NT$569 million in July 2023. For the second quarter of 2024, consolidated revenue was NT$1.873 billion, a year-over-year decrease of 2.64%, while operating profit was NT$258 million, up 88.88% year-over-year. However, due to the depreciation of the Japanese yen, the net profit attributable to the parent company in the second quarter was NT$164 million, down 3.67% year-over-year.
For the first half of 2024, SAI's cumulative consolidated revenue was NT$3.828 billion, up 3.05% year-over-year. Operating profit was NT$530 million, up 68.39%, and net profit attributable to the parent company was NT$413 million, with a year-over-year growth rate of 37.02%. The gross margin for the first half of 2024 was 27%, the operating profit margin 14%, and the net profit margin 11%, with all three metrics showing improvement compared to 2023.
This represents the highest profitability for the first half of the year in the past five years. Cumulative consolidated revenue from January to July 2024 was NT$4.375 billion, up 2.13% from NT$4.284 billion in 2023.
