Hotai Motor of Taiwan Hits Record Jan.-Sept. Earnings

Hotai Motor Co., Ltd., agent of Toyota and Lexus and a major vendor in Taiwan, recently announced encouraging operation results for the first three quarters, including net accumulated earnings of NT$7.17 billion (US$238.9 million), up 25% year-on-year (YoY), and accumulated earnings per share (EPS) of NT$13.12 (US$0.44), compared to NT$10.49 (US$0.35) a year earlier, both being record highs to make Hotai again the most profitable for the period.

Hotai's spokesman Fred Hsieh says the company registered accumulated revenue of NT$118.3 billion (US$3.94 billion) in the first three quarters, up 10.85% YoY, due mainly to increased sales volume and product-structure adjustment. Imported cars have higher profit margins and can effectively raise profitability; while Hotai's affiliate, Kuozui Motors Ltd., local assembler of Toyotas, also contributed ample ROI due to increased production volume for sales in Taiwan and exports.

Hotai's shares almost hit NT$500 (US$16.7) recently to set a record high for automotive-related companies listed in Taiwan.

Most Hotai products have sold well in the first three quarters, including the locally assembled Toyota Corolla Altis, Yaris, and Vios sedans, as well as imported Lexus, especially the NX- and GS-series. Higher-margin imports have also sold well in the first three quarters to assure Hotai's earning growth, Hsieh said.

Yulon Nissan Motor Co., agent of Nissans, suffered clear decline in net earnings. In the first three quarters, it had accumulated net earnings of NT$3.92 billion (US$130.6 million), down 22.2% YoY from NT$5.04 billion (US$167.9 million), for EPS of NT$13.06 (US40.44), down from NT$16.8 (US$0.56) a year earlier.