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IPO Report: Autohome (ATHM)

By  +Follow December 10, 2013 5:02PM
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Autohome (ATHM) is the leading online destination for automobile consumers in China. Through its two websites, autohome.com.cn and che168.com, ATHM delivers comprehensive, independent and interactive content to automobile buyers and owners.

Eight other IPOs are scheduled for this week. The full IPO calendar can be found at IPOpremium.

ATHMscheduled a $102 million IPO with a market capitalization of $1.3 billion at a price range midpoint of $13 for Wednesday, December 11, 2013.  The price range mid-point has since been raised to $15, on the NYSE

S-1 filings

The Manager &  Joint managers are Deutsche Bank, Goldman Sachs (Asia). The Co-Managers are Oppenheimer & Co., Piper Jaffray.

Overview

Autohome (ATHM)  is the leading online destination for automobile consumers in China. Through its two websites, autohome.com.cn and che168.com, ATHM delivers comprehensive, independent and interactive content to automobile buyers and owners.

ATHM has a strong income statement.

.  Sales increased 97% for the nine months ended September ’13 vs ’12. 

.  Gross margin was 80%. 

Valuation

 

Proforma retained earnings

     

$21

 

Immediate per share dilution to IPO shareholders

 

($12)

 
             

Valuation Ratios

Mrkt

Price /

Price /

Price /

Price /

% offered

annualizing Sept 9 mos

Cap (mm)

Sls

Erngs

BkVlue

TanBV

in IPO

Autohome (ATHM)

$1,352

7.5

18.8

4.7

12.9

8%

Glossary

The conclusion is buy ATHM on the IPO.

Business

ATHMis the leading online destination for automobile consumers in China. Through its two websites, autohome.com.cn and che168.com, ATHM delivers comprehensive, independent and interactive content to automobile buyers and owners.

Autohome.com.cn ranked first among China’s automotive websites and automotive channels of internet portals in terms of average daily unique visitors, average daily time spent per user and average daily page views in the nine months ended September 2013, based on data published by iResearch, a third-party market research firm, or iResearch Public Data.

In the same period, autohome.com.cn accounted for 46% of the total time that China’s internet users spent viewing online automotive information, more than four times that of ATHM’s closest competitor, according to the iResearch Public Data.

ATHMhas developed a strong and well-recognized brand. ATHM’s “ LOGO ” (“Autohome”) brand has been the most searched automotive-related keyword during substantially the entire period since July 2011 on Baidu.com, the leading Chinese language internet search engine.

ATHM’s ability to reach a large and engaged user base of automobile consumers has made it a preferred platform for automakers and dealers to conduct their advertising campaigns.

 ATHM generates substantially all of its revenues from online advertising services and dealer subscription services with automakers contributing the substantial majority of its total net revenues.

ATHMhas a high penetration rate in the automaker market, with 80% of over 80 automakers operating in China having advertised on ATHM’s websites in each of 2010, 2011, 2012 and the nine months ended September 30, 2013.

In addition, a large and rapidly growing number of dealers are purchasing ATHM’s advertising services and subscription services, through which they showcase and market their inventories on ATHM’s websites.

Intellectual property

ATHMcurrently has 20 pending patent applications.

Competition

ATHMcompetes with China’s automotive websites, such as pcauto.com.cn and bitauto.com, automotive channels of major internet portals, such as Sina and Sohu, and traditional forms of media, such as television and magazines.

ATHMcompetes primarily on the basis of user traffic, user engagement and brand recognition, which drive the acquisition and retention of automakers and dealers as advertisers and their spending on ATHM’s advertising services.

ATHMre-designed its che168.com website in October 2011 and converted it into its dedicated used car platform. ATHM’s re-designed che168.com website faces competition from other used car websites, such as 51auto.com and taoche.com.

5% stockholders

Xiang Li  5.3%

Gabriel Li 12.6%

Telstra Holdings Pty Ltd 71.5%

Orchid Asia Funds 12.6%

AutoLee Ltd. 5.3%

Use of proceeds

ATHMexpects to net $88 million from its IPO. Proceeds are allocated as follows:

$20 million for investing in ATHM’s technology and product development;

$20 million for expanding ATHM’s sales and marketing activities;

$37.5 million for the share repurchase consideration payable by ATHM in the West Crest Share Purchase, the sole shareholder of which is Mr. Jiang Lan, a former director of the company; and the balance for general corporate purposes, including expenditures relating to the expansion of ATHM’s operations.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for athm
TimeForGrowth
29 Jul 15 11:26:02
$ATHM: Wall Street analysts bullish on ATHM's earnings growth: http://t.co/omB7AcD6nn http://t.co/93C64leUK7
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29 Jul 15 08:30:06
Sohu: Ongoing Pain http://t.co/bXAz4lotds $ATHM $BITA $CYOU $SINA $YOKU $SOHU
Breaking News
29 Jul 15 05:12:05
$ATHM $PWRD: China stocks bounce back as intervention restores stability ...: http://t.co/d2lrKVDYgj
BreakingStocksNews
29 Jul 15 00:42:02
$NTES $ATHM: China stocks end lower as Beijing renews support: NetEase, Inc ...: http://t.co/CUUx3q7l9D
China Stocks
28 Jul 15 16:51:33
#China #stocks $ATHM Autohome Inc. Daily:4.66% Weekly:-9.2% YTD:11.83% Trend:17 / 100 http://t.co/YSEXA8oGUI
InvestWithConf
28 Jul 15 15:03:02
$ATHM is rated BUY, 36.2% upside by Wall Street analysts based on average ratings/targets http://t.co/su0FgwMoux http://t.co/vb675Luu5r
ProTradersNews
28 Jul 15 12:52:05
$ATHM: Momentum Stock Focus: Autohome Inc. (NYSE:ATHM): http://t.co/dd1ml7qETh
DailyStockPicks
28 Jul 15 09:38:33
$OCLS cheap health care stock. Price target of $5. 200%+ upside $ATHM $ATW $AJG $LNCE $CVTI $ASTE investors read http://t.co/rWpJvFmAFr
#HelpYouGetGAINS
28 Jul 15 08:33:43
Sohu: Ongoing Pain http://t.co/IVc6oEMuqE … $ATHM $BITA $CYOU $SINA $YOKU $SOHU
Quantpost Technology
28 Jul 15 08:20:51
$SINA $YOKU News: "Sohu: Ongoing Pain $ATHM $BITA $CYOU $SINA $YOKU $SOHU" http://t.co/xEQF0Pbj8L Analyze: https://t.co/SJ26muUVgW
Tech Stocks
28 Jul 15 08:20:50
Sohu: Ongoing Pain http://t.co/3PhRFE3uTd $ATHM $BITA $CYOU $SINA $YOKU $SOHU
Long & Short Ideas
28 Jul 15 08:20:50
Sohu: Ongoing Pain http://t.co/moHXlyD1QQ $ATHM $BITA $CYOU $SINA $YOKU $SOHU
Seeking Alpha
28 Jul 15 08:20:49
Sohu: Ongoing Pain http://t.co/WABJk4Y05H $ATHM $BITA $CYOU $SINA $YOKU $SOHU
investor wired
28 Jul 15 07:13:42
Asia Stocks Declined: $JASO $ATHM $SFUN $NTES $JD http://t.co/fre9KgeD4S
Penny Stock Secret
27 Jul 15 20:15:16
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/SVqoMkrw2z .. $ATHM $ATI $ATK
China Stocks
27 Jul 15 16:51:29
#China #stocks $ATHM Autohome Inc. Daily:-5.47% Weekly:-11.86% YTD:6.85% Trend:0 / 100 http://t.co/YSEXA8oGUI
Capital Market Labs
27 Jul 15 10:19:07
Interactive Chart -> http://t.co/Y4fg7NtoCJ $ATHM Earnings are Rising. http://t.co/rKiuhCmurA
Momo.Trader007
27 Jul 15 09:16:34
Buying China Stocks on weakness Now $BIDU earnings will lift China $BITA $ATHM $WBAI $WUBA $YY $VIPS ... Buy Now !!!!! down 5% Avg ..
Ben Silverberg
27 Jul 15 08:50:17
From the Nav Station of sailboat BayB, $ATHM BtC Aug 50.00 Covered Calls at 0.20 for Net Gain 1.65 on trade; holding Common for a Swing
Clark Joseph Kent
27 Jul 15 06:37:36
Chinese tech stocks hammered as Shanghai drops 8.5% $YY $QIHU $JD $SOHU $VIPS $YOKU $DANG $WUBA $BITA $ATHM $CMCM $WB http://t.co/XZGsRw4Q0v
China Stock Research
26 Jul 15 06:34:01
RT @ftchina: China car market braces for flat sales http://t.co/loZuAFXHc4 $ATHM $BITA $PGJ
Capital Market Labs
24 Jul 15 21:05:21
Interactive Chart -> http://t.co/CtMv6nvMgQ $ATHM Earnings are Improving. http://t.co/6uQnoeRIKS
China Stocks
24 Jul 15 16:51:39
#China #stocks $ATHM Autohome Inc. Daily:-4.82% Weekly:-8.87% YTD:13.04% Trend:0 / 100 http://t.co/YSEXA8oGUI
Capital Market Labs
24 Jul 15 15:30:26
Interactive Chart -> http://t.co/x2p6xLMudk $ATHM Revenue and Earnings are Expanding. http://t.co/ZppZbDBDsj
Capital Market Labs
24 Jul 15 12:16:17
Interactive Chart -> http://t.co/gGYnqUYL34 $ATHM Research and Development is Accelerating. http://t.co/gnAYtOLoAU
Capital Market Labs
24 Jul 15 11:26:16
Interactive Chart -> http://t.co/weBNoQgy4Z $ATHM Revenue is Expanding. http://t.co/Z8PJZDNx1h
Ben Silverberg
24 Jul 15 08:28:53
Chop! Chop! $ATHM -3.6% $FEYE -3.6% $URI -4.9% $VDSI -2.8%
FastMoneyLydia
24 Jul 15 05:24:47
RT @peterschack: Cigna sings the Anthem, and investors tune in to Pandora - today's stocks to watch: $CI $ATHM $P http://t.co/410OdyzFrq
Peter Schacknow
24 Jul 15 05:23:44
Cigna sings the Anthem, and investors tune in to Pandora - today's stocks to watch: $CI $ATHM $P http://t.co/410OdyzFrq
kevin quackenbush
24 Jul 15 05:20:00
$AMZN $SBUX $ATHM $CI $EXEL #Ferrari some of the early headliners this morning http://t.co/prBQaM990B
kevin quackenbush
24 Jul 15 05:14:14
$AMZN $CI $ATHM $BIIB seeing early noticeable action in premarket http://t.co/prBQaM990B
InvestWithConf
23 Jul 15 22:37:02
$ATHM is rated BUY, 23.4% upside by Wall Street analysts based on average ratings/targets http://t.co/su0FgwMoux http://t.co/w9WaIGSOeD
China Stocks
23 Jul 15 16:51:34
#China #stocks $ATHM Autohome Inc. Daily:-2.97% Weekly:-4.49% YTD:18.76% Trend:0 / 100 http://t.co/YSEXA8oGUI
Capital Market Labs
23 Jul 15 15:01:48
Interactive Chart -> http://t.co/x2p6xLMudk $ATHM Revenue and Earnings are Growing. http://t.co/mbYWz1tvAD
Ben Silverberg
23 Jul 15 08:20:47
$ATHM coiling tighter, on B/O watch over 45.31, setting Stop at 200-dMA at 43.56; Swing Position
Randy
23 Jul 15 05:54:39
RT @CMLviz: 10 Large Cap Tech with Great Fundamentals and Golden Cross $FLEX $MELI $CDW $ATHM $ANET http://t.co/0u4DbRPsyh http://t.co/Hf29…
TimeForGrowth
23 Jul 15 04:08:01
$ATHM: Wall Street analysts bullish on ATHM's earnings growth: http://t.co/omB7AcD6nn http://t.co/R2QvN7KjPi
Ophir Gottlieb
23 Jul 15 03:53:11
10 Large Cap Tech with Great Fundamentals and Golden Cross $FLEX $MELI $CDW $ATHM $ANET http://t.co/OSd1ILf9QK http://t.co/nkwpsJTbTO
BreakingStocksNews
23 Jul 15 02:07:02
$ATHM: Shares of Autohome Inc. (NYSE:ATHM) Sees Large Inflow of Net ...: http://t.co/OBjXxuFDf4
Wholesale MBA
23 Jul 15 01:10:31
RT @JorelLaraKalel: Weekly Movers $UVE $OUTR $ULTA $LCI $WAL $PNK $CBM $HZNP $REGN $HAWK $MTSI $AOS $SC $ATHM $CRUS $AVGO $SWKS $VDSI http:…
China Stocks
22 Jul 15 16:51:32
#China #stocks $ATHM Autohome Inc. Daily:-0.63% Weekly:3.44% YTD:22.39% Trend:10 / 100 http://t.co/YSEXA8oGUI
PJ Carrillo
22 Jul 15 15:18:05
RT @CMLviz: 10 Large Cap Tech with Great Fundamentals and Golden Cross $FLEX $MELI $CDW $ATHM $ANET http://t.co/0u4DbRPsyh http://t.co/Hf29…
StockNewsWires
22 Jul 15 03:10:04
$ATHM: Autohome Inc. to Announce Second Quarter 2015 Financial Results ...: http://t.co/MWQSC4KAwK
China Stocks
21 Jul 15 16:51:33
#China #stocks $ATHM Autohome Inc. Daily:1.59% Weekly:-0.33% YTD:23.16% Trend:15 / 100 http://t.co/YSEXA8oGUI
Capital Market Labs
21 Jul 15 13:41:12
Interactive Chart -> http://t.co/x2p6xM454S $ATHM Revenue and Earnings are Growing. http://t.co/FOJ0TJWCFY
Capital Market Labs
21 Jul 15 10:17:13
Interactive Chart -> http://t.co/gGYnqUYL34 $ATHM Research and Development is Growing. http://t.co/kOOHiQW59e
Jibran Shahzad
21 Jul 15 09:42:10
RT @WrigleyTom: Some China nHod | 12:40 pm $JMEI $SOHU $JKS $AVGO $SINA $LEJU $ATHM $BITA $WBAI $JD $CMCM $QIHU $WUBA $TSL $XNET
Joseph Hsieh
21 Jul 15 09:41:45
RT @WrigleyTom: Some China nHod | 12:40 pm $JMEI $SOHU $JKS $AVGO $SINA $LEJU $ATHM $BITA $WBAI $JD $CMCM $QIHU $WUBA $TSL $XNET
Tom Wrigley
21 Jul 15 09:41:23
Some China nHod | 12:40 pm $JMEI $SOHU $JKS $AVGO $SINA $LEJU $ATHM $BITA $WBAI $JD $CMCM $QIHU $WUBA $TSL $XNET
Ben Silverberg
21 Jul 15 07:09:50
$ATHM StO Aug 50.00 Covered Calls for Premium 1.00, Cash Generation
				
				
By  +Follow December 10, 2013 5:02PM
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