logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

IPO Report: Autohome (ATHM)

By  +Follow December 10, 2013 5:02PM
Share:

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.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for athm
Americanbulls
19 Dec 14 14:55:11
$ATHM apparently the bear pattern is not confirmed. Prices continue to rise. http://t.co/cSi6zfABUV
China Stock Research
19 Dec 14 07:08:34
Bitauto, Autohome: From Displaying To Selling Cars, UBS Starts At Buy http://t.co/OxwSmuRSHb $BITA $ATHM
Peter Rumble
18 Dec 14 07:42:47
$ATHM $BITA $REX very nice bullish action since two days $SPY $QQQ
Americanbulls
16 Dec 14 15:11:36
$ATHM may go down 8% if the bear pattern is confirmed. Chk confirmation [57%] @ http://t.co/cSi6zfABUV. Short level:36.5000.
Analyst Ratings
16 Dec 14 14:05:09
Get the latest news and updates for $AAOI $FGL $VLP $ATHM $SALT automatically with ARN Daily http://t.co/siHzJwSDKf
FonsieTrader
16 Dec 14 04:39:38
Parabolic Sar Buy Signals $AAN $ABCB $ACFN $ADNC $AGCO $ALSN $ANGI $ATHM $BBBY $CHS $DKS $DSW $YELP $ORCL $PETM $OPK http://t.co/Lo4mdHuO5M
StockNewsWires
16 Dec 14 04:03:02
$RVBD $ATHM: Tech Top Gainers: Riverbed Technology (NASDAQ:RVBD), Cirrus ... http://t.co/hW9stO8WwS http://t.co/bCfK7k6POg
Точка Входа.Трейдинг
16 Dec 14 02:45:07
Идеи long / / $ATHM NOW $ROST $BBBY / / #трейдинг #nyse #nasdaq #биржа
FonsieTrader
15 Dec 14 22:33:43
Parabolic Sar Buy Signals $AAN $ABCB $ACFN $ADNC $AGCO $ALSN $ANGI $ATHM http://t.co/e4P8BQ1b1s #Premarket #stocks #stockmarket #trading #fx
eldad nahmany
15 Dec 14 14:04:45
Long watch list for tmw: $crus>23$, $athm>38.25$, $spls>17$.
Ariel Silahian
15 Dec 14 13:00:36
Algorithmic trading CLOSING Dec/15 $GALE(2.7 %) $ATHM(-24.5 %) $ACAD(-20.8 %) $VHC(9.3 %)
Hot Stocks NYC
15 Dec 14 11:29:20
I am long $BA $NOW $ATHM $COST and $IYT # trading #stocks
Daredevil
15 Dec 14 11:18:07
Top Market Movers Above $10: $MFI, $CRUS, $BBSI, $AIRT, $RVBD, $MEG, $DO, $RRC, $ABCO, $ATHM, $AGCO, $CYOU, $PETM, $NBR, $FRAN …..
monestsignalen
15 Dec 14 10:39:03
#aandelen enkele bear flags http://t.co/Ayaj5usImn $ATHM $CRR $LQDT
				
				
By  +Follow December 10, 2013 5:02PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.