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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.


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Results for athm
China Stock Research
25 Oct 14 05:07:11
China's auto market growth may halve to 7 percent this year: industry body head http://t.co/OoaRbptRGg $ATHM $BITA $LAS
Volatility Implied
24 Oct 14 20:31:57
Weekend Research $LCI $ATHM $STRT $VDSI $VIPS $SWKS $SMCI $LOCO $TTM $GMCR $PTSI $CTLT $YY .....ummm and like a ton more ....
Sarcasm Bot
24 Oct 14 08:06:28
$ATHM Looks like it may consolidate @ 50
Large Void Bot
24 Oct 14 08:00:33
Popular: $AMZN, $VXX, $GIMO, $CELG, $EWZ, $GILD, $ATHM, $DRIV, $BWLD, $VALE, $LJPC, $BKS, $KNDI, $QLIK
The LincolnList
24 Oct 14 07:02:33
$BITA $ATHM going
Louisiana Trader
24 Oct 14 07:00:10
$ATHM angry
Battleflag
24 Oct 14 05:14:07
some long watches - $cag $bobe $de $infy $brew $athm $bdsi $cald $ptsi $cmn $le $scln
NASDAQ
24 Oct 14 04:36:09
$ATHM - Autohome Inc. to Announce Third Quarter 2014 Financial Results on November 5, 2014 http://t.co/VRr9JVyddF
4-traders.com
24 Oct 14 04:35:06
Autohome : to Announce Third Quarter 2014 Financial Results on November 5, 2014 http://t.co/cBWakI6iCd $ATHM
Mr. Breakout
23 Oct 14 21:22:32
RThx > @minjon56 re: $ATHM was my PICK OF THE YEAR back in January in the Mr. Market contest...Glad U finally found it > @IBDinvestors
GV
23 Oct 14 21:16:59
RT @sharptraders: $ATHM was my PICK OF THE YEAR back in January in the Mr. Market contest...Glad U finally found it > @IBDinvestors
rolly
23 Oct 14 21:10:48
new leading bases for $SPX, $ACHN, $AMRI, $AMED, $ABC, $ATHM, $ANNR, $BURL, $CMGE, $DEPO, $LOCO, $EPAM, $FARM, $FRGI, $ICLR, $KANG, $INSY
Mr. Breakout
23 Oct 14 20:23:05
$ATHM was my PICK OF THE YEAR back in January in the Mr. Market contest...Glad U finally found it > @IBDinvestors
Nolan Parker
23 Oct 14 12:50:12
My top 5 stocks to be Long: 1. $AAPL 2. $ATHM 3. $PANW 4. $FB 5. $ULTA
9to5Investor
23 Oct 14 11:03:19
underinvested. Don't argue with the market, could be a great time to make some money:) $SPY $QQQ $FB $ATHM $AMAG
Webbie!
23 Oct 14 08:10:58
$ATHM setting up nice with this flag on the daily. Initiated small position here. http://t.co/IjcKpzmnlu
Peter Rumble
23 Oct 14 07:54:02
$ATHM $REX $AAPL $CAT going bonkers here, also pulling $SPY towards 200 magnet
Hereitfirst
22 Oct 14 21:05:47
how to trade $TRN $AAPL $IBM $UGAZ $ESI $AMZN $ILMN $ENTA $ATHM $BIDU $RAX $TUBE http://t.co/uTZpFW8a4K
Cristobal Barberis
22 Oct 14 08:06:08
Five bearish swing trade ideas for Wednesday #MeanReversion $FNF, $HMSY, $ETE, $ATHM, $IBN #brberisReport
9to5Investor
22 Oct 14 07:07:10
My systems are all on buys now, I bought stock on Friday and Monday, hoping for a big rally, stops are 10 week moving averages $FB $ATHM
Cristobal Barberis
22 Oct 14 06:25:08
Top 5 stocks with Up days in a row. #bearish $MCRS {10}, $VTR {10}, $AGNC {8}, $ATHM {8}, $BHP {7} #brberisReport
Hereitfirst
21 Oct 14 21:10:45
how to trade $TRN $AAPL $IBM $UGAZ $ESI $AMZN $ILMN $ENTA $ATHM $BIDU $RAX $TUBE http://t.co/uTZpFW8a4K
Vizimi Stocks
21 Oct 14 19:07:13
Tuesday 10/21 News: $ATHM closed up for the 8th straight day #NYSE #stocks
Cristobal Barberis
21 Oct 14 14:55:02
Stocks with big downside potencial #Bearish $HMC, $HMSY, $FNF, $ATHM, $ETE #brberisReport
આધ્યા ભાવિકીન્જલ ©
21 Oct 14 11:24:55
$ATHM is all primed to spike to 65$ by Nov, $BITA up 10% & wants 100$, new $AAPL target is 120$ by Dec, $SPY should retest 201 & higher $QQQ
Peter Rumble
21 Oct 14 06:44:29
$ATHM $BITA $REX $AAPL $LIVE in plays today
Peter Rumble
21 Oct 14 03:04:21
$ATHM will run to 55 plus and attempt to break its recent high of 57$ in few weeks, $BITA showing decent runup too $SPY $QQQ $DJIA
Vizimi Stocks
20 Oct 14 22:37:20
Monday 10/20 News: $ATHM closed up for 7 straight days #NYSE #stocks
Hereitfirst
20 Oct 14 21:17:59
how to trade $TRN $AAPL $IBM $UGAZ $ESI $AMZN $ILMN $ENTA $ATHM $BIDU $RAX $TUBE http://t.co/uTZpFW8a4K
iammzsmit
20 Oct 14 20:32:58
RT @PeterRumble1: $REX $ATHM $AAPL $ISRG on watch tomorrow for bullish continuation $SPY
Peter Rumble
20 Oct 14 20:27:55
$REX $ATHM $AAPL $ISRG on watch tomorrow for bullish continuation $SPY
wizzwatch
20 Oct 14 15:48:15
$ATHM - Autohome, Inc. http://t.co/6XVukRaFTB
Andrew Rocco
20 Oct 14 14:20:40
RT @JFDI: Charts of Interest - $AGIO $AKRX $ATHM $BABA $BIDU $EPAM $FB $GPRO $ILMN $PANW $RWLK $TSLA $ULTA $VIPS $ZOES http://t.co/4MfiL3Zh…
Lord Νιcholas
20 Oct 14 14:19:56
Charts of Interest - $AGIO $AKRX $ATHM $BABA $BIDU $EPAM $FB $GPRO $ILMN $PANW $RWLK $TSLA $ULTA $VIPS $ZOES http://t.co/4MfiL3ZhMb
Relaxed Trading
20 Oct 14 11:09:48
$ATHM like the consolidation for 49 break. I'll learn to post charts soon enough (!)
Johnny Trades
20 Oct 14 10:20:49
$BIDU Holding early gains along with $ATHM $BITA $QIHU . Just one play in the China group not holding $YY
11 Charts Report
20 Oct 14 08:54:31
$ATHM continues to display solid RS. Working on its 7th consecutive session higher in a very tough environment.
Cousin_Vinny
20 Oct 14 08:38:58
$ATHM reviewed this weekend http://t.co/JJfqt3hXC2 Sunday video #IBD50 pushing ABV VBP levels #Mikey http://t.co/leIoAoIAma
HotKeyTrading
20 Oct 14 08:00:04
Price Advances: $CNL $NPSP $ANAC $SNDK $TERP $HIL $MAR $WAL $HTZ $GCI $SANM $ALGN $POST $LII $ATHM http://t.co/Vv2VEn80mr #stocks #spy #mkt
monestsignalen
20 Oct 14 06:58:08
Wat kopen de grote spelers volgens effective volume http://t.co/ArbBp8hltn #aandelen $SHY $NVAX $ATHM
China Stock Research
20 Oct 14 05:54:09
Shakeout predicted for China's domestic auto manufacturers http://t.co/9bPWCPo7zn $LAS $BITA $ATHM
Thiruvar
20 Oct 14 02:39:18
RT @JFDI: Charts of Interest - $AGIO $AKRX $ATHM $BABA $BIDU $EPAM $FB $GPRO $ILMN $PANW $RWLK $TSLA $ULTA $VIPS $ZOES $SPY http://t.co/PEe…
ely
19 Oct 14 21:21:52
$athm-nice weekly bar-encompassing last 4 weekly bars http://t.co/WNfG6UzclX
Lord Νιcholas
19 Oct 14 19:03:23
Charts of Interest - $AGIO $AKRX $ATHM $BABA $BIDU $EPAM $FB $GPRO $ILMN $PANW $RWLK $TSLA $ULTA $VIPS $ZOES $SPY http://t.co/PEe451o5dv
Thomas Rice
19 Oct 14 16:55:25
$ATHM China Car web service, KST xover, 4-9-18EMA xover, ER Nov10 https://t.co/zWT233oSeY
Rus Chao
19 Oct 14 12:19:28
$ATHM long idea https://t.co/4HzEmOJ2d3 #northpost
China Stock Research
19 Oct 14 07:13:08
What happened last week with US-listed #China stocks? Big moves from $ATHM $CMGE $DQ $NQ $SUYT $CHOP $CYOU $SCOK http://t.co/QEKugpotEF
Terry
18 Oct 14 16:13:29
RT @ChinaStockRsrch: Major moves up & down this week from from $ATHM $CMGE $DQ $NQ $SUYT $CHOP $CYOU $SCOK http://t.co/Hqvpcfk22F
China Stock Research
18 Oct 14 14:06:03
Major moves up & down this week from from $ATHM $CMGE $DQ $NQ $SUYT $CHOP $CYOU $SCOK http://t.co/Hqvpcfk22F
TheRealAlexCurry
18 Oct 14 11:13:52
RT @IBDinvestors: Why you should be careful with these potential buy points http://t.co/uStxlkHeTJ $ATHM $SNCR http://t.co/rmfE4SzvoN
				
				
By  +Follow December 10, 2013 5:02PM
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