Hotai Motor Co., Ltd. (2207) AI Stock Analysis

Hotai Motor Co., Ltd.

(TWSE:2207)

Select Model

Rating:67Neutral

Price Target:TWD 573.00▲(10.83% Upside)

Action:initiatedcoverage

Date:11/09/26

Primary drivers are financial recovery via strong cash generation despite leverage risks, with neutral technical signals and attractive valuation providing further support.

Positive Factors

Solid Revenue and ProfitabilityThe combination of renewed revenue growth and healthy operating margins indicates that Hotai retains meaningful earnings power in its core automotive activities. If maintained, this profitability can support investment, shareholder returns, and resilience across the vehicle distribution cycle over the next several quarters.

Negative Factors

High Financial LeverageElevated leverage reduces Hotai’s financial flexibility if vehicle demand or profitability weakens. A highly debt-funded balance sheet can increase financing sensitivity and constrain investment or shareholder distributions, making the company more exposed to operating setbacks over the next several quarters.

Hotai Motor Co., Ltd. (2207) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 289.14B
Dividend Yield: 3.87%
Average Volume (3M): 283.28K
Price to Earnings (P/E): 12.7
Beta (1Y): 0.22
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

Revenue growth and margin expansion indicate recovery, supported by strong positive operating and free cash flows, though high debt levels remain a concern.

Income Statement

72Positive

Balance Sheet

48Neutral

Cash Flow

78Positive

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2207 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2207	67Neutral	TWD 283.01B	12.71	―	3.87%	8.45%	33.44%
TW:1503	65Neutral	TWD 88.83B	23.93	―	2.88%	8.33%	16.27%
TW:2206	59Neutral	TWD 47.30B	10.51	―	4.96%	-3.37%	2.68%
TW:2105	58Neutral	TWD 94.49B	17.56	―	6.10%	3.10%	6.14%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TW:1605	47Neutral	TWD 149.34B	7.01	―	1.47%	-0.13%	1219.70%
TW:2258	33Underperform	TWD 49.47B	-10.85	―	―	5.67%	-45.00%

* General Sector Average

Performance Comparison

TW:2207 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2207	Hotai Motor Co., Ltd.	517.00	-46.98	-8.33%
TW:1503	Shihlin Electric & Engineering Corp.	173.50	7.52	4.53%
TW:1605	Walsin Lihwa Corporation	34.05	1.72	5.33%
TW:2105	Cheng Shin Rubber Ind. Co., Ltd.	29.50	-1.37	-4.44%
TW:2206	Sanyang Motor Co., Ltd.	61.60	1.23	2.05%
TW:2258	Foxtron Vehicle Technologies Co., Ltd.	28.10	-15.40	-35.40%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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

Hotai Motor Co., Ltd. AI Stock Analysis