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AUTOMOTIVE - JAKARTA. JAKARTA. PT Garuda Metalindo Tbk (BOLT), a leading Indonesian manufacturer of automotive components, is striving to enhance its business performance throughout 2024. The company is relying on a combination of domestic and export sales to boost its performance.
Anthony Wijaya, Director of Garuda Metalindo, stated that the company is targeting sales of IDR 1.7 trillion in 2024, representing a growth of approximately 15% compared to the previous year's achievement. The company is also aiming for double-digit net profit growth in 2024.
BOLT's optimism is backed by the anticipated increase in demand from the automotive sector, both motorcycles and cars, in the second half of 2024. Additionally, the government is actively promoting the localization of vehicles circulating in Indonesia.
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Consequently, global automotive manufacturers operating in Indonesia are compelled to seek local component suppliers. This presents a significant opportunity for BOLT to increase its penetration in the domestic market.
As a note, BOLT's sales in the first quarter of 2024 decreased by 11.26% year on year (yoy) to IDR 365.39 billion. BOLT's net profit also declined by 63.90% yoy to IDR 17.32 billion.
"The four-wheel vehicle market condition slightly declined at the beginning of this year, but we believe it is only temporary," he said in a public presentation on Thursday (30/5).
For your information, 95% of BOLT's sales are directed towards the automotive segment. Therefore, the dynamics of demand in this segment will influence the company's performance.
In addition to focusing on the domestic market, BOLT is also continuously boosting sales of fasteners and automotive components to the export market. BOLT has exported to nine countries, including the United States, Canada, Mexico, Brazil, Germany, India, Malaysia, Thailand, and the Philippines.
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The opportunity to increase exports is open due to the high potential demand for motor vehicles in the global market. As an illustration, global car production reached 94 million units in 2023.
Currently, Germany is BOLT's largest export destination, contributing 50% of total exports. BOLT has gained significant trust from customers to export its products there.
Furthermore, BOLT plans to maximize its export potential to Mexico. This is considering many US automotive manufacturers are expanding to Mexico, thereby boosting the demand for components in that country.
BOLT has allocated a capital expenditure (capex) of IDR 49 billion this year. The capital expenditure is allocated for machine improvement and automation programs at BOLT's factory.
