Hotai Motor and Yulon Nissan to Challenge Annual Profit Records

Taipei, Nov. 1, 2012 (CENS)--Despite sluggish Taiwanese automobile market, Hotai Motor Co. Ltd. and Yulon Nissan Motor Co. both witnessed profit growths due to savvy investments, with Hotai achieving NT$10.86 (US$0.362) in EPS (earnings per share) in the first three quarters, and Yulon Nissan likely to hit NT$14 (US$0.47). Based on such significant profit growths, institutional investors are optimistic that both firms will hit record-high profits in 2012.

Hotai saw revenues in the first three quarters reach NT$64.792 billion (US$2.16 billion), with NT$5.765 billion (US$192.17 million) in operating margin, NT$3.676 billion (US$122.53) in non-operating income, NT$5.933 billion (US$197.76 million) in net earnings, and NT$10.86 (US$0.362) in EPS, according to the latest financial report from the firm.

The firm saw revenues and profits in the third quarter decline from a quarter earlier due to the Chinese ghost-month effect, but achieved the highest gross profit margin in the said quarter at nearly 10%, higher than the 8.5% in the first two quarters, to which a representative of Hotai attributes increasing component sales by promotions on the part of dealers and assemblers. Institutional investors predict, with peak season in the end of the year and new launches of heavyweight vehicles, the firm's revenues and profits in the fourth quarter are likely to grow from a quarter earlier, challenging NT$13 (US$0.43) in EPS.

With one of Yulon Nissan's three reinvestments in China recently enhancing profitability from component sales growth, the firm is likely to gain more profits in the third quarter compared to the first. Along with gradual growths in operating profits, Yulon Nissan is likely to hit NT$13 (US$0.43) in EPS in the first three quarters.

Institutional investors say, despite anti-Japan phenomenon in China's automobile market, Dongfeng Nissan Passenger Vehicle Company, an affiliate of Yulon Nissan, still aims to sell one million vehicles in 2012, driving Yulon Nissan to see gradual profit growth in China in the fourth quarter and challenge NT$20 (US$0.67) in EPS in 2012.