# Hotai Motor (2207.TW)

Canonical: https://gigainvestors.com/s/2207.TW

Analysis as of: 2026-10-16T07:36:03.438Z. Financial observations: FY2000–FY2025.

Listing currency: TWD. Reporting currency: TWD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: TWD 546.00 per share; close as of 2026-10-15.

Estimated value: low TWD 302.04 per share, central TWD 365.28 per share, high TWD 418.00 per share. Buy at or below the central value TWD 365.28 per share. Valuation as of 2026-10-16T07:36:03.438Z; scenarios are not confidence intervals.

Expected annual return: 7.5% at the stated quote. About 7.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; TW 10-year bond 2.0% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.53×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.06×

- FY2017: 0.07×

- FY2018: 0.08×

- FY2019: 0.08×

- FY2020: 0.10×

- FY2021: 0.12×

- FY2022: -0.03×

- FY2023: 0.11×

- FY2024: 0.12×

- FY2025: 0.11×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.5%

- ROIC, second-lowest year: 6.7%

- Typical minus recent gross margin: -3.2 pp

- Typical gross margin (annual median): 14.6%

- Recent gross margin (lower of latest and 3-year median): 17.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 9.1%

- ROIC including acquisitions, ten-year median: 4.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 7.6%

- FY2017: 7.5%

- FY2018: 7.2%

- FY2019: 7.4%

- FY2020: 9.4%

- FY2021: 9.1%

- FY2022: -2.2%

- FY2023: 7.8%

- FY2024: 7.0%

- FY2025: 6.7%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.38×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: TWD 24B

- Net income, five-year total: TWD 63B

- Return on incremental invested capital: 5.4%

- Working capital / revenue, annual change: 7.9 pp

- Working capital / revenue, change between three-year averages: 53.3 pp

- Working capital / revenue, final three-year average: 113.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.33×

- FY2022: 1.84×

- FY2023: 0.98×

- FY2024: 0.48×

- FY2025: 0.79×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 7.5% vs 7.0%

- Per-share earnings: 18.53 to 36.69 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.2%

- Ordinary dilution, 5-year annual growth: 4.4%

- Market cap gain: TWD 167B

- Cumulative retained earnings: TWD 23B

- Diluted shares, 10-year annual growth: 2.2%

- Diluted shares, 5-year annual growth: 4.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.9%

- Per-share value change: TWD 18.16

- Per-share value, starting three-year median: TWD 18.53

- Per-share value, ending three-year median: TWD 36.69

- Average buyback yield: 0.2%

- Buyback history: 1 years

- Debt-funded buybacks: Yes

- Acquisition spending: TWD 8.2B

- Cumulative net income, 10 years: TWD 119B

- ROIC, first three-year median: 7.5%

- ROIC, last three-year median: 7.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: TWD 19.65

- FY2017: TWD 18.53

- FY2018: TWD 18.37

- FY2019: TWD 21.53

- FY2020: TWD 25.35

- FY2021: TWD 29.64

- FY2022: TWD -28.26

- FY2023: TWD 40.99

- FY2024: TWD 36.69

- FY2025: TWD 27.87

### accounting: pass

- Sloan accruals: -5.7%

- Receivables to sales index (DSRI): 0.91×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.57×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.03×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.7%

- FY2017: -4.3%

- FY2018: 0.6%

- FY2019: -1.8%

- FY2020: 0.1%

- FY2021: 5.4%

- FY2022: 6.4%

- FY2023: 8.6%

- FY2024: -0.8%

- FY2025: -5.7%

## Holders

## Price story

Down 34% since Jun 2023 · sales +8.6%

Story as of 2026-10-16T10:00:06.636Z; price observation 2026-10-15.

Price needs cash profits to grow 8.9% a year for ten years

### Sales · FY2024–2025

sales +8.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: TWD 173B 

- FY2017: TWD 177B 

- FY2018: TWD 185B 

- FY2019: TWD 211B 

- FY2020: TWD 232B 

- FY2021: TWD 228B 

- FY2022: TWD 225B 

- FY2023: TWD 275B 

- FY2024: TWD 256B 

- FY2025: TWD 278B 

### Gross margin · FY2025

gross margin 17.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 13.3% 

- FY2017: 13.5% 

- FY2018: 14.8% 

- FY2019: 14.5% 

- FY2020: 15.9% 

- FY2021: 12.8% 

- FY2022: 9.8% 

- FY2023: 17.8% 

- FY2024: 15.0% 

- FY2025: 17.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in auto & truck dealerships; annual sales are TWD 278.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); FY2025: revenue 278061576000; grossProfit 49491935000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 2207.TW: Hotai Motor Co.,Ltd., together with its subsidiaries, exports and imports, trades, and sells vehicles, automobile air conditioners, and related parts in Taiwan and Mainland China. It is also involved in the installment sales and vehicle leasing, used vehicles selling, property and casualty insurance, trading of vehicle products/accessories, solar power, energy storage, and vehicle repairing activities, electronic parts and components manufacturing, as well as property management business. In addition, the company provides e-commerce platform services, decision making, capital using and financial management, information, taxi, employee training, consulting, factoring, freight forwarding, transportation and storage, and other services; and designs and produces advertisement. It provides products under the TOYOTA, LEXUS, and HINO brands. Hotai Motor Co.,Ltd. was incorporated in 1947 and is headquartered in Taipei, Taiwan.

### Why customers stay

Margins ranged from 15% to 17.8% during 2023–25; it earns 7.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); FY2023: grossProfit / revenue = 17.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); FY2024: grossProfit / revenue = 15%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); FY2025: grossProfit / revenue = 17.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); 10-year return on capital observations [[2016,0.07573839310789605],[2017,0.07487428550679008],[2018,0.0724124746939565],[2019,0.07428364914223587],[2020,0.09405411162236443],[2021,0.09105142326328396],[2022,-0.021763491767832575],[2023,0.07788404803891769],[2024,0.06994794179613884],[2025,0.06707798086794214]]; median 0.07457896732451297. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 40.4% of cash earnings on expansion; earns 5.4% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); FY2016: growth capex 2622889868.393509; upkeep 9824129131.606491; owner earnings 9253668868.393509. Growth capex / owner earnings = 0.28344323810333816.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); FY2017: growth capex 1023703783.606842; upkeep 12384564216.393158; owner earnings 5640585783.606842. Growth capex / owner earnings = 0.1814889131873534.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); FY2018: growth capex 1581643568.4099922; upkeep 17629869431.590008; owner earnings 440271568.4099922. Growth capex / owner earnings = 3.5924272242288535.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); FY2019: growth capex 5616716899.06152; upkeep 13263885100.93848; owner earnings 7065380299.06152. Growth capex / owner earnings = 0.7949631387580902.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); FY2020: growth capex 4456686263.059263; upkeep 14653365736.940737; owner earnings 8513948063.059263. Growth capex / owner earnings = 0.5234570648129924.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); FY2021: growth capex 0; upkeep 21150206000; owner earnings 5388463400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); FY2023: growth capex 12225166839.730017; upkeep 13131379160.269983; owner earnings 22419128069.525482. Growth capex / owner earnings = 0.5453007272101628.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); FY2024: growth capex 0; upkeep 25972841000; owner earnings 9763864911.981018. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); FY2025: growth capex 6031736400.243935; upkeep 18888277599.756065; owner earnings 14946632786.674444. Growth capex / owner earnings = 0.4035515213581405.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); Incremental return on capital 0.053670884363897754, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); Dividend observations: [[2016,6554150000],[2017,6554150000],[2018,6554150000],[2019,6554150000],[2020,7646509000],[2021,9285046000],[2022,10923584000],[2023,1092358000],[2024,13251889000],[2025,11142055000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 50.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 2207.TW SharesStats.PercentInsiders = 50.59 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8.9% yearly over ten years; actual growth was 7.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:03.438Z); Ten-year compound average after fade. Initial solved rate 0.11507563929026532. Price 546; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 11.12669639449486 → FY2025 22.039394947453978. Closing-price date 2026-10-15.

## Monthly share-price history (TWD per share)

- 2016-10: TWD 374.85 per share

- 2016-11: TWD 373.83 per share

- 2016-12: TWD 376.38 per share

- 2017-01: TWD 365.16 per share

- 2017-02: TWD 358.53 per share

- 2017-03: TWD 362.61 per share

- 2017-04: TWD 354.45 per share

- 2017-05: TWD 402.39 per share

- 2017-06: TWD 388.62 per share

- 2017-07: TWD 374.34 per share

- 2017-08: TWD 362.61 per share

- 2017-09: TWD 358.02 per share

- 2017-10: TWD 357.00 per share

- 2017-11: TWD 353.94 per share

- 2017-12: TWD 361.08 per share

- 2018-01: TWD 387.09 per share

- 2018-02: TWD 332.01 per share

- 2018-03: TWD 300.90 per share

- 2018-04: TWD 297.33 per share

- 2018-05: TWD 278.97 per share

- 2018-06: TWD 273.87 per share

- 2018-07: TWD 271.32 per share

- 2018-08: TWD 271.32 per share

- 2018-09: TWD 266.73 per share

- 2018-10: TWD 217.77 per share

- 2018-11: TWD 241.74 per share

- 2018-12: TWD 260.61 per share

- 2019-01: TWD 298.86 per share

- 2019-02: TWD 341.19 per share

- 2019-03: TWD 385.05 per share

- 2019-04: TWD 476.34 per share

- 2019-05: TWD 516.12 per share

- 2019-06: TWD 518.16 per share

- 2019-07: TWD 459.51 per share

- 2019-08: TWD 451.35 per share

- 2019-09: TWD 480.93 per share

- 2019-10: TWD 548.76 per share

- 2019-11: TWD 608.94 per share

- 2019-12: TWD 696.66 per share

- 2020-01: TWD 634.44 per share

- 2020-02: TWD 639.54 per share

- 2020-03: TWD 500.82 per share

- 2020-04: TWD 568.14 per share

- 2020-05: TWD 546.72 per share

- 2020-06: TWD 717.06 per share

- 2020-07: TWD 683.40 per share

- 2020-08: TWD 608.94 per share

- 2020-09: TWD 655.86 per share

- 2020-10: TWD 614.04 per share

- 2020-11: TWD 653.82 per share

- 2020-12: TWD 655.86 per share

- 2021-01: TWD 578.34 per share

- 2021-02: TWD 602.82 per share

- 2021-03: TWD 599.76 per share

- 2021-04: TWD 616.08 per share

- 2021-05: TWD 581.40 per share

- 2021-06: TWD 626.28 per share

- 2021-07: TWD 601.80 per share

- 2021-08: TWD 594.66 per share

- 2021-09: TWD 596.70 per share

- 2021-10: TWD 624.24 per share

- 2021-11: TWD 618.12 per share

- 2021-12: TWD 626.28 per share

- 2022-01: TWD 614.04 per share

- 2022-02: TWD 642.60 per share

- 2022-03: TWD 609.96 per share

- 2022-04: TWD 591.60 per share

- 2022-05: TWD 645.66 per share

- 2022-06: TWD 618.12 per share

- 2022-07: TWD 616.08 per share

- 2022-08: TWD 626.28 per share

- 2022-09: TWD 583.44 per share

- 2022-10: TWD 595.68 per share

- 2022-11: TWD 663.00 per share

- 2022-12: TWD 599.76 per share

- 2023-01: TWD 669.12 per share

- 2023-02: TWD 629.34 per share

- 2023-03: TWD 654.84 per share

- 2023-04: TWD 674.22 per share

- 2023-05: TWD 821.10 per share

- 2023-06: TWD 830.28 per share

- 2023-07: TWD 773.16 per share

- 2023-08: TWD 679.00 per share

- 2023-09: TWD 655.00 per share

- 2023-10: TWD 603.00 per share

- 2023-11: TWD 710.00 per share

- 2023-12: TWD 709.00 per share

- 2024-01: TWD 634.00 per share

- 2024-02: TWD 671.00 per share

- 2024-03: TWD 643.00 per share

- 2024-04: TWD 620.00 per share

- 2024-05: TWD 614.00 per share

- 2024-06: TWD 622.00 per share

- 2024-07: TWD 647.00 per share

- 2024-08: TWD 660.00 per share

- 2024-09: TWD 709.00 per share

- 2024-10: TWD 649.00 per share

- 2024-11: TWD 614.00 per share

- 2024-12: TWD 619.00 per share

- 2025-01: TWD 611.00 per share

- 2025-02: TWD 620.00 per share

- 2025-03: TWD 602.00 per share

- 2025-04: TWD 619.00 per share

- 2025-05: TWD 638.00 per share

- 2025-06: TWD 564.00 per share

- 2025-07: TWD 552.00 per share

- 2025-08: TWD 551.00 per share

- 2025-09: TWD 593.00 per share

- 2025-10: TWD 566.00 per share

- 2025-11: TWD 610.00 per share

- 2025-12: TWD 550.00 per share

- 2026-01: TWD 544.00 per share

- 2026-02: TWD 585.00 per share

- 2026-03: TWD 483.50 per share

- 2026-04: TWD 476.50 per share

- 2026-05: TWD 483.00 per share

- 2026-06: TWD 465.50 per share

- 2026-07: TWD 558.00 per share

- 2026-08: TWD 513.00 per share

- 2026-09: TWD 509.00 per share

- 2026-10: TWD 533.00 per share

## Annual estimated value (TWD per share)

- FY2016: low TWD 144.75 per share, central TWD 191.33 per share, high TWD 220.23 per share

- FY2017: low TWD 164.96 per share, central TWD 213.84 per share, high TWD 245.37 per share

- FY2018: low TWD 168.46 per share, central TWD 231.19 per share, high TWD 267.73 per share

- FY2019: low TWD 200.26 per share, central TWD 272.51 per share, high TWD 315.42 per share

- FY2020: low TWD 231.02 per share, central TWD 309.61 per share, high TWD 356.53 per share

- FY2021: low TWD 218.51 per share, central TWD 260.23 per share, high TWD 294.01 per share

- FY2022: low TWD 125.15 per share, central TWD 139.56 per share, high TWD 158.74 per share

- FY2023: low TWD 250.80 per share, central TWD 326.86 per share, high TWD 376.57 per share

- FY2024: low TWD 247.91 per share, central TWD 309.35 per share, high TWD 355.02 per share

- FY2025: low TWD 219.95 per share, central TWD 266.86 per share, high TWD 305.96 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.