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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

Results for athm
Stock_Tracker
19 Apr 14 16:42:21
Autohome Inc. (ATHM) 34.94 $ATHM Why Autohome (ATHM) Stock Is Soaring Today at The Street - Wed Apr 16, 1:24PM http://t.co/iGvmSY3uYk
Jaycob Keating
18 Apr 14 17:20:37
$ATHM Why Autohome (ATHM) S http://t.co/1dd822D1JS
WKRB News
18 Apr 14 09:44:14
Autohome Receives New Coverage from Analysts at Credit Suisse $ATHM http://t.co/Xtl6oAzcP9
Zolmax News
17 Apr 14 12:47:35
Autohome Receives New Coverage from Analysts at Credit Suisse $ATHM http://t.co/vvpuq9wjls
JFinDallas
17 Apr 14 10:12:36
I think $LEJU & $WB are going to be good candidate to get in the New Chinese Internet Hot Potato Index™ $SFUN $ATHM $WUBA $WBAI $QUNR $BITA
China Stock Research
17 Apr 14 09:22:00
Credit Suisse: Buy Bitauto For O2O, Hold Autohome On Valuation - Emerging Markets Daily http://t.co/KMpP5Kc9Zl $BITA $ATHM
Finance Wire
17 Apr 14 06:00:46
$ATHM Why Autohome (ATHM) S http://t.co/km9p0cluMO
Don Fishback
17 Apr 14 04:46:45
Negative Implied Borrow Rate $GWX, $SCHG, $ATHM, $QTWW, $HZNP http://t.co/KmAu9dwrdD
OptionApps
17 Apr 14 04:46:45
Negative Implied Borrow Rate $GWX, $SCHG, $ATHM, $QTWW, $HZNP http://t.co/SwtWNprvZ5
AllyGMorrison
17 Apr 14 03:27:08
$ATHM Credit Suisse: Buy Bitauto For O2O, Hold Autohome On Valuation http://t.co/mqpu7SzynF
AllyGMorrison
17 Apr 14 03:14:08
$ATHM Why Autohome (ATHM) Stock Is Soaring Today http://t.co/PISWDVeC70
VisualStock Resource
16 Apr 14 12:56:17
$ATHM up 14.06% recently! Choose your Guru and learn how to trade! http://t.co/axK8SMSgo9 (Superman or Nathan Michaud) I subscribe!
VisualStock Resource
16 Apr 14 12:50:18
$ATHM up 14.07% today! Check out this trade http://t.co/Bbgu3VIDWb I made 31% on $IWEB JOIN US LIVE: http://t.co/hRcCx7XOWO
Henry J Costanzo
16 Apr 14 12:48:14
@TheStreet @Si_Investor $ATHM Is there a new dictionary out with a new definition of "soaring" ?????
Silicon Investor
16 Apr 14 11:44:48
AUTOHOME, Inc. $ATHM up %11.29, board started on SI in 2002. http://t.co/QxhyF4Httl
Livevol Community
16 Apr 14 07:00:03
Gainers: $OESX+16.24% $TKMR+10.98% $ATHM+10.95% Losers: $ASML-5.34% $RUSS-4.48% $ORMP-3.91% Stock Movers Report: http://t.co/uMXw0atgVI
US Banking News
16 Apr 14 05:49:54
Autohome Now Covered by Credit Suisse $ATHM http://t.co/EakSshB5Cl
US Consumer News
16 Apr 14 05:16:30
Autohome initiated by Credit Suisse at neutral. http://t.co/ztMsogphma $ATHM #ATHM
Analyst Ratings
16 Apr 14 05:16:00
Autohome initiated by Credit Suisse at neutral. http://t.co/SLo0Ctvtw3 $ATHM #ATHM
rachelchitra
16 Apr 14 04:43:00
RT @theflynews: $ATHM Autohome initiated with a Neutral at Credit Suisse: Full Story http://t.co/4uD1v7gtja
The Fly
16 Apr 14 04:41:41
$ATHM Autohome initiated with a Neutral at Credit Suisse: Full Story http://t.co/4uD1v7gtja
JFinDallas
15 Apr 14 10:20:38
If you got ballz New Chinese Internet Hot Potato Index™ at important level $SFUN $ATHM $WUBA $WBAI http://t.co/LovE91wSaE
JFinDallas
15 Apr 14 10:20:32
New Chinese Internet Hot Potato Index™ also in the #NoBids category, a big believer in theme still but hard to get in this mess? $SFUN $ATHM
Winston Kotzan
14 Apr 14 18:58:51
$ATHM at support baseline, but has head with many shoulders. http://t.co/b0Opzi1YKg
				
				
By  +Follow December 10, 2013 5:02PM
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