This paper develops an analysis of ultimate capacity of hot-rolled RHS and SHS, only considering the effect of local buckling. Finite element models were developed and compared with existed experimental results. A large numbers of computing results obtained by verified numerical models then were applied to systematic parametrical analysis and comparisons with different codes together with current DSM design curve. It reveals that the ultimate carrying capacity of hot-rolled RHS and SHS stub column is proportional to its yield strength, and is significantly affected by cross section aspect ratio. Based on current exited direct strength method which is not suitable for hot-rolled RHS and SHS stub column directly, a new DSM formulation then is proposed in the subsequent analysis. The results shows that the revised formula possesses dominant advantages in the prediction of local buckling capacity of hot-rolled RHS and SHS.