Autohome Is A Cheap Market Leader Caught Up In The China Sell-Off
Alpha Gen Capital
Alpha Gen Capital
Autohome: Show Me Some Love
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
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
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.
Sep. 16, 2015, 2:06 PM
- The beaten-down Shanghai and Shenzhen exchanges respectively rose 4.9% and 6.5% overnight thanks to late-session surges - many suspect fresh government intervention was responsible. U.S. traded Chinese Web/mobile names have risen sharply (CQQQ +4.4%) on a day the Nasdaq is up just 0.3%.
- Big gainers include search giant Baidu (BIDU +5.4%), rival Qihoo (QIHU +6.5%), auto sites Bitauto (BITA +6.4%) and Autohome (ATHM +5.3%), travel sites Ctrip (CTRP +7.4%) and Qunar (QUNR +6.5%), online real estate plays SouFun (SFUN +6.1%) and Leju (LEJU +4.5%), and online retailers JD.com (JD +4.8%) and Vipshop (VIPS +6.3%). Priceline announced yesterday afternoon it had hiked its Ctrip stake to 11.6%.
- Other winners include ChinaCache (CCIH +8.1%), Cheetah Mobile (CMCM +6.2%), Sina (SINA +6.7%), Weibo (WB +4.3%), Youku (YOKU +5.7%), and YY (YY +4.1%).
- ETFs: KWEB, QQQC, EMQQ
Sep. 4, 2015, 2:38 PM
- A slew of Chinese firms are among the biggest tech decliners as U.S. markets once more go into risk-aversion mode following a weaker-than-expected jobs report. The Guggenheim China Tech ETF (CQQQ -3.3%) is now down 19% YTD.
- Big decliners include Alibaba (BABA -4.7%), as well as e-commerce peers JD.com (JD -6.6%), Vipshop (VIPS -7.9%), and LightInTheBox (LITB -3.8%). Others include Qihoo (QIHU -4.4%), Autohome (ATHM -5.3%), Sina (SINA -4.7%), YY (YY -4.3%), Ctrip (CTRP -4.3%), Qunar (QUNR -4.4%), Wowo (WOWO -5.8%), and iDreamSky (DSKY -5.6%).
- Yesterday, Bloomberg reported Alibaba founder/chairman Jack Ma and vice chairman Joseph Tsai plan to take out a $2B+ margin loan pledged against their Alibaba stock holdings, rather than sell shares to raise funds. The money reportedly could go towards Tsai's Blue Pool Capital family office.
- After initially moving higher, Qihoo is now below where it traded before posting a Q2 EPS beat (and not providing any guidance) on Tuesday afternoon.
- ETFs: KWEB, QQQC, EMQQ
Aug. 11, 2015, 12:27 PM
- In its latest move to boost slowing economic growth, the PBOC has devalued the yuan, while insisting it's a one-time move. The yuan/dollar ratio is currently at 6.33, down from 6.21 yesterday.
- A number of Chinese Internet stocks that record the lion's share of their revenue in yuan are seeing their U.S. shares (denominated in dollars, of course) underperform (CQQQ -3.4%) amid a 1.3% drop for the Nasdaq. Major decliners include Baidu (BIDU -3.8%), Qunar (QUNR -10.2%), Ctrip (CTRP -5.9%), JD.com (JD -5.8%), Sina (SINA -5%), NetEase (NTES -3.9%), Jumei (JMEI -10.7%), Youku (YOKU -6.2%), Bitauto (BITA -6.4%), Leju (LEJU -6%), Changyou (CYOU -7.7%), and Autohome (ATHM -5.3%).
- Among Chinese solar names, Daqo (DQ -14.4%) and JinkoSolar (JKS -3.3%) are seeing big losses.
- JD.com is adding to the Monday losses seen following a Morgan Stanley downgrade and news Alibaba has formed an alliance with major electronics retailer Suning. Both JD and Jumei could be affected by fellow online retailer Vipshop (down 11.1%), which yesterday afternoon provided light Q3 sales guidance to go with a Q2 EPS beat.
- ETFs: KWEB, QQQC, EMQQ
- Yesterday: Chinese Internet stocks rally after Shanghai/Shenzhen post big gains
Aug. 5, 2015, 2:33 PM
- In addition to beating Q2 estimates, Autohome (NYSE:ATHM) is guiding for Q3 revenue of RMB850M-RMB884M ($137.1M-$142.6M, +55.9%-62.2% Y/Y), mostly above an RMB853.2M consensus. Shares have nonetheless fallen below $36, and taken those of archrival Bitauto (NYSE:BITA) down with them.
- Concerns about still-heavy spending could be weighing: Operating expenses rose 116.1% Y/Y in Q2 to $55.8M (compares with 69.9% revenue growth), thanks in large part to a 157.1% increase in sales/marketing spend to $39.4M. R&D spend rose 72.6% to $9.8M, and G&A 36.3% to $6.5M. Cost of revenue rose 46.9% (less than revenue).
- Ad services revenue rose 63.1% to $96.3M - automaker ads +64.2% to $73M, dealer ads +59.8% to $23.4M. Dealer subscription services revenue rose 87.6% to $42.5M, fueled by a 37.1% increase in paying dealers and a 36.9% increase in average revenue per subscriber. Subscriptions were sold to 18,768 dealers.
- Bitauto's Q2 report arrives after the close on Thursday.
- Autohome's Q2 results, PR
Jul. 27, 2015, 9:29 AM
- After bouncing in recent weeks with the help of massive government support, Chinese markets nosedived once again overnight amid a backdrop of weak manufacturing data. Shanghai fell 8.5%, Shenzhen fell 7%, and the ChiNext Index fell 7.4%.
- Not surprisingly, many U.S.-traded Chinese tech names are off sharply in premarket trading. YY -4.2%. Qihoo (NYSE:QIHU) -5.5%. JD.com (NASDAQ:JD) -5.4%. SOHU -6%. iDreamSky (NASDAQ:DSKY) -9.6%. SouFun (NYSE:SFUN) -8%. SINA -5.5%. Weibo (NASDAQ:WB) -7.8%. Vipshop (NYSE:VIPS) -4.8%. Youku (NYSE:YOKU) -6.2%. Qunar (NASDAQ:QUNR) -6.2%. Dangdang (NYSE:DANG) -5.4%. 58.com (NYSE:WUBA) -4.7%. 500.com (NYSE:WBAI) -7.2%. Jumei (NYSE:JMEI) -5.7%. NQ Mobile (NYSE:NQ) -6%. Bitauto (NYSE:BITA) -6.3%. Autohome (NYSE:ATHM) -4.8%. Cheetah Mobile (NYSE:CMCM) -10.1%.
- Sohu and Changyou reported this morning. Baidu reports after the close.
- ETFs: CQQQ, QQQC, KWEB, EMQQ
Jul. 7, 2015, 10:42 AM
- The selloff in Chinese equities refuses to let up: Shanghai fell 1.3% overnight, Shenzhen fell 5.3%, and Hong Kong fell 2.7%. The declines come amid a backdrop of frantic government efforts to halt the plunge, and requests by hundreds of Chinese companies for trading halts.
- The lion's share of U.S.-traded Chinese Web and mobile firms are down at least 5%, and many are down more than twice that. In alphabetical order by ticker, major decliners include Autohome (ATHM -10.6%), Bitauto (BITA -18.7%), Baozun (BZUN -22.7%), ChinaCache (CCIH -14.6%), Cheetah Mobile (CMCM -15.2%), China Mobile Games (CMGE -13.2%), Ctrip (CTRP -10.1%), Changyou (CYOU -12.6%), Dangdang (DANG -13.8%), iDreamSky (DSKY -15.4%), E-House (EJ -15.9%), Jumei (JMEI -20.2%), Leju (LEJU -12.1%), eLong (LONG -12.6%), Momo (MOMO -9.4%), NQ Mobile (NQ -16.7%), NetEase (NTES -12.2%), Qihoo (QIHU -10.3%), Qunar (QUNR -14.2%), Renren (RENN -17.8%), SouFun (SFUN -16.3%), Sohu (SOHU -10.9%), Taomee (TAOM -15.1%), Vipshop (VIPS -9.7%), Weibo (WB -10.9%), 500.com (WBAI -26.2%), Wowo (WOWO -26.7%), 58.com (WUBA -17.3%), Xunlei (XNET -14%), Youku (YOKU -12.2%), and YY (YY -9.4%).
- The plunge seen over the last two months (aided by panic selling and margin calls?) has led multiples for U.S.-traded Chinese tech names to compress dramatically, with forward P/E and P/S ratios often below those of U.S. peers sporting similar growth profiles. The Guggenheim China Tech ETF (CQQQ -9.3%) is down 29% from a May peak of $45.64.
- ETFs: KWEB, QQQC, EMQQ
- Yesterday: Chinese tech stocks tumble again in spite of fresh government support
- Earlier today: Chinese phone firms decline as country's markets sink
- Update: The group pared its losses a bit in afternoon trading. CQQQ closed down 5.8%.
Jun. 30, 2015, 11:00 AM
- Hit hard in recent weeks as the Shanghai and Shenzhen exchanges posted bear market-caliber declines following a massive run-up, Chinese Web/mobile stocks are bouncing today (CQQQ +2.7%) after Beijing drafted rules allowing its state pension funds to invest up to 30% of their net asset value in equities, a move that could lead up to $97B to flow into stocks. Shanghai and Shenzhen respectively posted 5.5% and 4.8% overnight gains.
- Major gainers include Sky-mobi (MOBI +6.8%), Jumei (JMEI +5.8%), Baozun (BZUN +4.6%), LightInTheBox (LITB +4.9%), Autohome (ATHM +5%), iDreamSky (DSKY +3.9%), ChinaCache (CCIH +3.2%), SouFun (SFUN +3.6%), and Leju (LEJU +3.5%). The Nasdaq is up 0.4%.
- ETFs: KWEB, QQQC, EMQQ
Jun. 10, 2015, 2:38 PM
- The Nasdaq is up 1.4% and the S&P 1.3%, and Chinese and Internet solar names aren't missing out on the fun. The Guggenheim China Tech ETF (CQQQ +0.9%) is up 20% YTD, as is the Guggenheim Solar ETF (TAN +2.2%).
- The gains come even though the Shanghai exchange fell fractionally overnight, following news MSCI is delaying (but not abandoning) plans to include Chinese A-shares in its global benchmark index. The more volatile (some argue frothier) Shenzhen index rose 2%.
- Major Internet gainers include ChinaCache (CCIH +20.2%), YY (YY +5.1%), NQ Mobile (NQ +6.3%), Bitauto (BITA +4.4%), Autohome (ATHM +6.1%), Sky-mobi (MOBI +6.4%), 51job (JOBS +10.9%), Xunlei (XNET +11.3%), Leju (LEJU +6.4%),and KongZhong (KONG +6.8%). Earlier today, Renren and 21Vianet joined the ranks of Chinese tech firms to announce they've received going-private offers, and LightInTheBox disclosed a major investment from shoe retailer Aokang.
- Solar gainers include Trina (TSL +3.7%), JinkoSolar (JKS +3.2%), ReneSola (SOL +3.8%), Daqo (DQ +3.3%), and China-exposed Canadian Solar (CSIQ +3.8%). U.S. peers First Solar and SunPower are also doing well after setting IPO pricing for their solar project YieldCo.
- Last Friday: Chinese Internet stocks surge as Shanghai tops 5K
May 11, 2015, 2:37 PM
- The Shanghai exchange rose 3% overnight, continuing a torrid 2015 after the PBOC slashed its benchmark rate by 25 bps in a fresh easing move. A slew of Chinese Internet/mobile names are rallying while the Nasdaq barely budges.
- Gainers include Qihoo (QIHU +3.3%), Weibo (WB +3.4%), SouFun (SFUN +7.2%), Renren (RENN +3.1%), Cheetah Mobile (CMCM +10.6%), ChinaCache (CCIH +7.3%), Autohome (ATHM +4.9%), Xunlei (XNET +7.2%), Jumei (JMEI +7.3%), and Changyou (CYOU +6%).
- The massive rallies occurring in the absence of major company-specific news (particularly for thinly-traded names) have triggered comparisons with the Dot.com bubble. However, many U.S.-traded firms remain well below their 2014 highs, and their forward P/E and P/S multiples (though often not cheap) are generally well below those sported by Dot.com-era darlings.
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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