Autohome Is A Cheap Market Leader Caught Up In The China Sell-Off
Alpha Gen Capital
Alpha Gen Capital
Autohome: Show Me Some Love
Mon, Jun. 6, 10:07 AM
- Search giant Baidu (BIDU +1%), messaging/gaming giant Tencent (OTCPK:TCEHY), and #2 Chinese e-commerce firm JD.com (JD +1.8%) are each investing $50M in leading Chinese online auto platform Bitauto (BITA +12%). Bitauto is also selling $150M worth of convertible bonds to investment firm PAG.
- Baidu, Tencent, and JD are each buying 2.47M Bitauto shares at $20.23 apiece ($0.23 below Friday's close). The deal follows JD and Tencent's $1.55B 2015 investment in the company, and respectively leaves JD, Tencent, and Baidu holding 23.5%, 7.1%, and 3.2% stakes.
- The bonds are due five years from issuance, and carry a 2% interest rate and $23.67/share conversion price. Owners of the convertible debt will hold an 8.2% stake. Bitauto chairman/CEO William Li will be buying a portion of the debt through PAG, by means of a total return swap agreement.
- Bitauto is up sharply. Rival Autohome (ATHM +3.2%) is posting moderate gains. Li: "Through our new partnership with Baidu, we expect to leverage its leadership in mobile and desktop online search, big data and transaction services platforms for additional strategic advantages as we continue to create the industry leading new and used car purchasing experience for customers in China."
Wed, Jun. 1, 9:43 AM
- After premarket gains, Autohome (NYSE:ATHM) is off 2.9% following its Q1 earnings beat on top and bottom lines and revenue grew strong to come in well ahead of guidance.
- Profits were up 49.1% on sales that grew more than 75% powered by the launch of a new online marketplace along with increases in its baseline media services and leads generation services business.
- Revenue by segment: Media services, $442.1M yuan (up 22.6%); Leads generation services, 384.1M yuan (up 46.8%); Online marketplace, 267.3M yuan (up from 601,000 yuan).
- In mobile traffic, average daily unique visitors increased 65.3% Y/Y (and 16.3% sequentially). Visitors accessing mobile websites reached 8.8M, and visitors via mobile apps reached 7.2M.
- In Q1, 4,957 new vehicles were sold through the company's B2C transaction platform.
- Press Release
Wed, Jun. 1, 4:15 AM
Tue, May 31, 5:30 PM
Fri, Apr. 15, 8:43 PM
- Chinese online auto platform Autohome (NYSE:ATHM) has received a $31.50/share, non-binding, going-private offer from a consortium including CEO James Zhi Qin, VC firm Sequoia's Chinese arm (Sequoia China), and investment firms Boyu Capital and Hillhouse Capital.
- The offer price is 12.1% above Autohome's weighted-average trading price over the last 30 days, but $0.65 below where shares closed today following a 6.6% gain. The buyout group plans to finance the deal with bank financing and its members' existing Autohome stakes.
- Autohome finished after-hours trading down 2% to $31.50.
Fri, Apr. 15, 9:13 AM
Tue, Mar. 8, 12:54 PM
- Bitauto (BITA +8.7%) has jumped to its highest levels since early January after beating Q4 estimates (moreso on EPS than revenue) and guiding for Q1 revenue of RMB1.05B-RMB1.09B ($162.4M-$167.8M), above an RMB934.1M consensus. Rival Autohome (ATHM +2.2%) is up moderately.
- Financials: Boosting Q4 EPS: Gross margin rose to 72.8% from 68.4% a year ago. Heavy spending is still weighing: Sales/admin spend rose 178.1% Y/Y to RMB1.17B ($181M), and R&D spend rose 74.7% to RMB88.8M ($13.7M). Net profit is expected to total $9M-$10.5M in Q1, after amounting to $17.3M in seasonally stronger Q4.
- Top-line performance: Ad revenue rose just 1.4% Y/Y in Q4 to RMB455.2M ($70.3M), and digital marketing revenue fell 3.8% to RMB179.6M ($27.7M). However, Bitauto's EP Platform (auto dealer advertising/CRM) saw revenue rise 78% to RMB604.5M ($93.3M). The company's gross billings grew rose 29% to RMB1.68B ($259.8M, above revenue of $191.3M).
- Bitauto's Q4 results, earnings release
Wed, Feb. 17, 5:23 AM
Tue, Feb. 16, 5:30 PM
Mon, Jan. 4, 12:58 PM
- With concerns about macro issues both inside and outside China's borders running high, the Shanghai and Shenzhen exchanges respectively fell 6.9% and 8.2% overnight before getting halted. Today in the U.S., the Nasdaq is down 2.6% and the S&P 2.1%.
- Naturally, U.S.-traded Chinese tech stocks are having a rough day. Big decliners include e-commerce firms Alibaba (BABA -6.2%), JD.com (JD -7.9%), Vipshop (VIPS -7.8%), and Baozun (BZUN -6.8%). Others include auto site owners Bitauto (BITA -7.2%) and Autohome (ATHM -8.5%), Sohu (SOHU -6.9%) and gaming subsidiary Changyou (CYOU -8.8%), mobile app developer Cheetah Mobile (CMCM -7%), online classifieds leader 58.com (WUBA -5.9%), and CDN owner ChinaCache (CCIH -6.4%).
- SouFun is down sharply after naming a new CFO. Qunar is seeing big losses after naming a new CEO, COO, and CFO.
- In other news, Alipay parent Ant Financial is looking to raise more funds ahead of a long-expected IPO. Bloomberg reports Alipay is seeking at least $1.5B; the Chinese online payments leader was valued at $45B in a June round. Alibaba is entitled to 37.5% of Alipay's pre-IPO profits, and a 37.5% stake at IPO time.
- ETFs: CQQQ, KWEB, QQQC, EMQQ
Nov. 5, 2015, 9:42 AM
- Though it beat Q3 estimates, Autohome (NYSE:ATHM) is guiding for Q4 revenue of RMB942M-RMB979M (+27.4%-32.5% Y/Y, equal to $148.2M-$154M), below an RMB1.05B consensus. The Chinese auto site owner suggests macro pressures are weighing.
- Top-line performance: Ad revenue rose 58.6% Y/Y in Q3 to $96.2M - automaker ads +51.7% to $63.9M, dealer ads +74.2% to $32.3M. Dealer subscription revenue rose 80.1% to $45.2M, with ARPU rising 35.1% and paying dealers 33.4%.
- Financials: Cost of revenue rose 65.2% to $25.1M, nearly even with revenue growth of 64.9%. Operating expenses rose 83.6% to $71.3M - sales/marketing spend +89.2% to $52.8M, R&D +76% to $11.6M, G&A +59.4% to $6.9M. Autohome ended Q3 with $550.6M in cash, and no debt.
- Archrival Bitauto (NYSE:BITA) is following Autohome lower ahead of its Monday Q3 report.
- Q3 results, PR
Nov. 5, 2015, 9:10 AM| Nov. 5, 2015, 9:10 AM | 32 Comments
Nov. 5, 2015, 5:07 AM
- Autohome (NYSE:ATHM): Q3 EPS of RMB2.23 beats by RMB0.12.
- Revenue of RMB898.6M (+64.9% Y/Y) beats by RMB23.17M.
Nov. 4, 2015, 5:30 PM
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Oct. 14, 2015, 12:54 PM
- A slew of Chinese Internet stocks are underperforming on a quiet day for equities after Beijing reported China's consumer price index rose 1.6% Y/Y in September (slightly less than an expected 1.8%) and its producer price index fell 5.9% (the biggest drop since the financial crisis), triggering fresh fears about slowing growth.
- The Shanghai exchange fell a moderate 0.9% overnight. The Nasdaq is currently up 0.3%.
- U.S.-traded names selling off include Vipshop (VIPS -3.5%), Bitauto (BITA -4.2%), Autohome (ATHM -3.9%), JD.com (JD -2.9%), Jumei (JMEI -8.7%), Autohome (ATHM -3.9%), Xunlei (XNET -3.6%), 500.com (WBAI -2.8%), and Wowo (WOWO -4.2%). JD has received a cautious note from 86 Research.
Sep. 30, 2015, 11:26 AM
- Chinese auto site owners Bitauto (BITA +6.4%) and Autohome (ATHM +13.6%) are flying higher after Beijing cut its tax on vehicles with 1.6-liter or smaller engines in half to 5% through the end of 2016, in an effort to boost flagging auto sales.
- The government also banned local governments from restricting the purchase/operation of electric vehicles, and reiterated its support for developing new vehicle technologies.
- Concerns about macro pressures and heavy spending have taken a big toll on both Bitauto and Autohome: The former remains down 69% from a 52-week high of $97.45, and the latter down 41% from a 52-week high of $56.59. Tencent and JD.com took stakes in Bitauto earlier this year.
Autohome, Inc. engages in the operation and maintenance of automobile websites. Its websites autohome.com.cn and che168.com and mobile applications delivers interactive content for automobile buyers and consumers. The company was founded in June 2008 and is headquartered in Beijing, China.
Industry: Internet Information Providers
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