Hotai Motor Co., Ltd. AI Stock Analysis
Hotai Motor Co., Ltd. (2207) AI Stock Analysis
Hotai Motor Co., Ltd.
(TWSE:2207)
Hotai Motor scores in the upper-middle range. Fundamentals are the dominant driver: revenue growth has resumed, gross margins hit a multi-year high, and cash generation improved sharply with free cash flow turning positive, but margin compression further down the income statement and a heavily leveraged balance sheet (≈3.7x debt-to-equity with a thin equity cushion) cap the score. Technicals are moderately supportive, with the price holding above its 50-, 100- and 200-day averages and a positive MACD, though short-term momentum indicators are neutral to soft. Valuation is the strongest element — a 13x P/E combined with a 3.8% dividend yield and low beta provides reasonable downside support for a cyclically sensitive, financially leveraged franchise.
Hotai Motor Co., Ltd. (2207) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 286.91B
- Dividend Yield
- 3.94%
- Average Volume (3M)
- 284.18K
- Price to Earnings (P/E)
- 12.5
- Beta (1Y)
- 0.23
- Revenue Growth
- 8.45%
- EPS Growth
- 33.44%
- Country
- TW
- Employees
- 3,930
- Sector
- General
- Sector Strength
- 55
- Industry
- Auto - Dealerships
Hotai Motor Co., Ltd. Business Overview & Revenue Model
Company Description
Hotai Motor Co., Ltd., along with its subsidiaries, primarily engages in the import, export, trade, and sale of vehicles, automobile air conditioners, and related parts across Taiwan and Mainland China. Expanding beyond core sales, the company offers...
Hotai Motor Co., Ltd. Financial Statement Overview
Summary
FY2025 showed broad operational improvement: revenue up ~8% to NT$278.1bn, gross margin at a five-year high of 17.8%, operating cash flow nearly doubling to NT$48.6bn and free cash flow turning positive at NT$23.7bn. Offsetting this, operating margin fell to 10.8% from 13.7% and net income eased ~8% to NT$18.9bn, showing cost pressure below the gross line. The balance sheet remains the weakest link with debt-to-equity near 3.7x and equity funding only ~17% of the NT$521bn asset base, though leverage has steadily declined from 6.2x in 2022 and ROE is still attractive at ~22%. Cash flow history is volatile and tied to the leasing/financing investment cycle.
Income Statement
68PositiveBalance Sheet
55NeutralCash Flow
65Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 307.95B | 278.06B | 256.11B | 274.51B | 225.21B | 227.83B |
| Gross Profit | 60.04B | 49.49B | 38.43B | 48.88B | 22.02B | 29.13B |
| EBITDA | 46.44B | 44.90B | 49.01B | 48.31B | 1.24B | 37.65B |
| Net Income | 22.65B | 18.90B | 20.47B | 22.86B | -15.75B | 16.21B |
Balance Sheet | ||||||
| Total Assets | 554.76B | 521.02B | 510.56B | 485.88B | 406.56B | 349.61B |
| Cash, Cash Equivalents and Short-Term Investments | 34.00B | 32.15B | 30.88B | 29.47B | 23.67B | 36.69B |
| Total Debt | 318.20B | 314.57B | 314.46B | 307.62B | 259.06B | 192.07B |
| Total Liabilities | 430.40B | 397.27B | 396.44B | 385.44B | 336.99B | 255.15B |
| Stockholders Equity | 85.66B | 86.16B | 78.28B | 66.23B | 41.76B | 73.77B |
Cash Flow | ||||||
| Free Cash Flow | 22.90B | 23.69B | -1.50B | -44.53B | -66.70B | -23.65B |
| Operating Cash Flow | 46.04B | 48.61B | 24.47B | -19.17B | -41.89B | -2.50B |
| Investing Cash Flow | -35.62B | -28.01B | -23.46B | -24.26B | -28.56B | -23.31B |
| Financing Cash Flow | -10.45B | -16.24B | -5.86B | 51.29B | 60.03B | 33.14B |
Hotai Motor Co., Ltd. Peers Comparison
Overall Rating
TW:150365Neutral- TW:220765Neutral
TW:220659Neutral
TW:210558Neutral
TW:160547Neutral
TW:225833Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:1503 | 65Neutral | TWD 88.83B | 23.52 | ― | 2.93% | 8.33% | 16.27% |
| TW:2207 | 65Neutral | TWD 283.01B | 12.49 | ― | 3.94% | 8.45% | 33.44% |
| TW:2206 | 59Neutral | TWD 47.30B | 10.58 | ― | 4.93% | -3.37% | 2.68% |
| TW:2105 | 58Neutral | TWD 94.49B | 17.35 | ― | 6.17% | 3.10% | 6.36% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TW:1605 | 47Neutral | TWD 149.34B | 10.18 | ― | 1.48% | -0.13% | 1219.70% |
| TW:2258 | 33Underperform | TWD 49.47B | -10.78 | ― | ― | 192.87% | -166.63% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:2207 | Hotai Motor Co., Ltd. | 508.00 | -47.34 | -8.53% | |
| TW:1503 | Shihlin Electric & Engineering Corp. | 170.50 | -2.31 | -1.34% | |
| TW:1605 | Walsin Lihwa Corporation | 33.70 | 2.80 | 9.07% | |
| TW:2105 | Cheng Shin Rubber Ind. Co., Ltd. | 29.15 | -1.06 | -3.50% | |
| TW:2206 | Sanyang Motor Co., Ltd. | 62.00 | 3.92 | 6.75% | |
| TW:2258 | Foxtron Vehicle Technologies Co., Ltd. | 28.25 | -13.50 | -32.34% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 09, 2026