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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
Business Updates
28 Aug 14 23:05:52
$ATHM: China's Autohome Drives Ad Sales From Web Car Content http://t.co/FqD35xZfFG http://t.co/ERNnaKKuMp
PolgarStocks
28 Aug 14 22:30:06
$BAC Ex-Div Date http://t.co/n8kJtlkaZv Also See: $ATHM $XLI $SPLK $NBRI ~
Chasing Stars
28 Aug 14 22:17:14
$ATHM Day High http://t.co/bpHvawIK7a Also See: $XOM $AG $INCC $VTI ~
Investors Hangout
28 Aug 14 22:16:21
$ATHM Change http://t.co/jfOoMvLXE3 Also See: $PPH $CSIQ $EWY $XLI ~
Investors Hangout
28 Aug 14 22:14:13
$ATHM Summary http://t.co/6nVkEmxVN5 Also See: $VIPS $SH $BKW $VZ ~
Stock Forums
28 Aug 14 22:10:53
$ATHM Day Low http://t.co/nw50GWxI0f Also See: $IBM $PG $X $XLF ~
Rosner Stocks
28 Aug 14 22:10:29
$ATHM Investor Opinions http://t.co/ZFQBla2Y6w Also See: $CSIQ $MBLY $DIS $KGC ~
PolgarStocks
28 Aug 14 22:06:41
$ATHM Day High http://t.co/MlOS9wwlfO Also See: $UGAZ $LQMT $VIPS $BTU ~
David Blocher
28 Aug 14 21:52:38
$ATHM - http://t.co/qPBJcH3qdq
Charts 123
28 Aug 14 21:14:03
Asia sell signals: $ATHM $TOUR $DANG http://t.co/FAa6smKjJf #stocks
Rosner Stocks
28 Aug 14 20:35:10
$AA Volume http://t.co/JwSiEgN2EC Also See: $ATHM $CRM $NBRI $SPLK ~
Stock News Updates
28 Aug 14 19:05:55
$ATHM: 1:45 am Autohome states that its policy is not to comment on unusual market activity http://t.co/l9AEmo4f1N http://t.co/o8YMWYEhFq
Investors Hangout
28 Aug 14 18:15:06
$ATHM Prev Close http://t.co/P6AiNyzobz Also See: $RSP $GDXJ $ROST $DSW ~
Charts 123
28 Aug 14 18:14:02
Worst losers Asia: $ATHM $TOUR $DANG http://t.co/FAa6smKjJf #stocks
Investors Hangout
28 Aug 14 17:55:47
$ATHM Tick http://t.co/YmuPo77s1x Also See: $TBT $DB $FCX $SLV ~
Investors Hangout
28 Aug 14 17:30:43
$AMD Chart http://t.co/goLZTFvbJV Also See: $FXI $AXCG $USO $ATHM ~
OTPicks.com
28 Aug 14 15:44:55
http://t.co/hjgLwIcNgz lookn4wins: $ATHM Daily Chart $ATHM Most recent stock chart: lookn4wins http://t.co/zFsUybw0SP http://t.co/hjgLwIcNgz
OTPicks.com
28 Aug 14 15:44:53
http://t.co/QkCFZ8H3V8 lookn4wins: $ATHM Daily Chart $ATHM Most recent stock chart: lookn4wins http://t.co/8X3TIxefg0 http://t.co/QkCFZ8H3V8
Stock News Headlines
28 Aug 14 15:05:59
$ATHM: Stocks Up After Durable Goods Orders Set Record http://t.co/gYGo6sGyEh http://t.co/DVGxoTViNJ
ronin245
28 Aug 14 14:40:53
Commented on StockTwits: $BITA nice reshort tday @90, (what a b tho) what keeps this up<g $ATHM date with the ... http://t.co/8OkMf4gMTn
Investors Hangout
28 Aug 14 14:35:14
$XLF Bid http://t.co/izMYCDcZ9J Also See: $TCN.TO $ATHM $XLV $XME ~
Investors Hangout
28 Aug 14 14:25:07
$XLE Yield http://t.co/UeEtrMiN9b Also See: $AXCG $FLS $XLY $ATHM ~
Investors Hangout
28 Aug 14 14:08:49
$XHB Tick http://t.co/XfkkYCIpet Also See: $GRDO $FLS $AG $ATHM ~
Francesca Haverkost
28 Aug 14 14:07:21
RT @stockstobuy: Top #Stocks Monday - $DGLY $ITMN $NLST $THI $HGSH $BKW $KIOR $ADXS $TROV $RSH $INUV $PBYI $MOBL $RCPT $ATHM $LTM - http://…
Investors Hangout
28 Aug 14 13:39:37
$WTSL E.P.S. http://t.co/lu56IyPTfG Also See: $C $BKW $ATHM $GE ~
Market News Desk
28 Aug 14 13:05:47
$ATHM: Stocks Move Higher Early; Gilead, Autohome, Tesla Rising http://t.co/L6IGrownMn http://t.co/3CQML6ck9Q
Investors Hangout
28 Aug 14 12:57:24
$VTI Filings http://t.co/SzQqJnXXMF Also See: $GPRO $NFLX $SSO $ATHM ~
Louisiana Trader
28 Aug 14 12:48:32
Out $ATHM not enough cajones to hold overnight
George Maniere
28 Aug 14 12:17:58
Shorted $BITA, $ATHM and $BIDU today. Could have had 5 more but not really conversant with the space. $YY was a good short but....
Investors Hangout
28 Aug 14 11:54:05
$URA % Change http://t.co/SDUORmfOYx Also See: $TZA $ATHM $IYT $EEM ~
Investors Hangout
28 Aug 14 11:30:41
$UGAZ Exchange http://t.co/3GOZXGr6Ai Also See: $ATHM $CSIQ $AA $FSLR ~
Business News Now
28 Aug 14 11:05:57
$ATHM: Autohome Inc (ADR) (NYSE:ATHM): A New Standard For Electric Vehicle http://t.co/Kbm3kNS4LP http://t.co/iJ58aL8pK3
ronin245
28 Aug 14 11:04:19
Commented on StockTwits: and $ATHM up off the 3waves down 5min 46.80 http://t.co/af34PkgEN2
Tom Wrigley
28 Aug 14 11:01:52
$ATHM 47.80 | Rounding bottom intra-day (seeing some block buys) $BITA shouldn't be far behind w/vol buys beg of day http://t.co/QXxckkWONO
TradeTexasBig
28 Aug 14 10:58:02
my $ATHM stop hasnt hit by 1 penny this morning :)
Investors Hangout
28 Aug 14 10:41:44
$TRUE Ask http://t.co/e59wjvF9Pg Also See: $ATHM $KGC $INTC $DIA ~
ronin245
28 Aug 14 10:24:52
$ATHM & $BITA and they made $$$$ shorting them back down too
ronin245
28 Aug 14 10:24:03
$ATHM funny thing, those hedgies running this & $BITA were just trying to make a few 10s of mil to sink into $BABA lol...running these
Louisiana Trader
28 Aug 14 10:14:25
Nibble L $ATHM 46.87 likely day trade
ronin245
28 Aug 14 10:08:05
Commented on StockTwits: almost $1bil shave on $athm still near $5bil here, prolly same hedgies ran it up, stran... http://t.co/wyKhR5jUVv
Stock News Headlines
28 Aug 14 10:05:48
$ATHM: Autohome States that its Policy is Not to Comment on Unusual Market Activity http://t.co/WT0uPXqRlK http://t.co/RdQLqXbaWQ
Extreme Stocks
28 Aug 14 09:39:29
lookn4wins: $ATHM Daily Chart $ATHM Most recent stock chart http://t.co/sVpPxxCDsG
lookn4wins
28 Aug 14 09:30:03
$ATHM Daily Chart $ATHM Most recent stock chart and technical analysis. $TNA $TASR $AXP $ANAS $NFX $SVFC http: http://t.co/52H1fSD7zf
Investors Hangout
28 Aug 14 09:20:25
DennyT: FB Press Releases $FB $ATHM $PEIX $AIG $GDSM http://t.co/sEi6qjQYPV
Investors Hangout
28 Aug 14 09:20:22
DennyT: FB Press Releases $FB $ATHM $PEIX $AIG $GDSM http://t.co/HQ8MP2NR8H
ronin245
28 Aug 14 09:19:23
Commented on StockTwits: $athm beuty fade, lets see if 48 gives much http://t.co/nmUlTuTBRj
Investors Hangout
28 Aug 14 09:16:17
danrocks: $EPI Hit my list a few days ago $NEM $ATHM $BAA http://t.co/US6Dx1rSgS
Investors Hangout
28 Aug 14 09:16:17
danrocks: $EPI Hit my list a few days ago $NEM $ATHM $BAA http://t.co/BAuQdJVecL
Investors Hangout
28 Aug 14 09:15:47
danrocks: $WFM Making Some Noise $ANET $ATHM $RIBT $PTAH http://t.co/RQSuKYMmjk
Investors Hangout
28 Aug 14 09:15:46
danrocks: $WFM Making Some Noise $ANET $ATHM $RIBT $PTAH http://t.co/UgHQodDfvL
				
				
By  +Follow December 10, 2013 5:02PM
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