Hotai Motor (2207) Q1 2024 earnings summary

Executive summary

• Consolidated revenue for Q1 2024 reached NT$72.07 billion, up 6% year-over-year from NT$67.95 billion in Q1 2023.

• Net income attributable to owners was NT$5.89 billion, a 16% increase year-over-year; basic and diluted EPS were NT$10.56, up from NT$9.09.

• Total comprehensive income for the period was NT$11.88 billion, up from NT$6.42 billion in Q1 2023.

Financial highlights

• Gross margin improved, with cost of sales at 68% of revenue versus 69% in Q1 2023.

• Operating expenses rose to NT$6.49 billion, mainly due to higher employee benefits and depreciation.

• Cash and cash equivalents stood at NT$21.3 billion as of March 31, 2024.

• Total assets increased to NT$496.1 billion, and total equity reached NT$99.96 billion.

Outlook and guidance

• Management expects continued growth in vehicle sales, leasing, and insurance segments, supported by robust demand and expanded product offerings.

• Capital adequacy and liquidity remain strong, with significant unused credit lines and a capital adequacy ratio above regulatory requirements.