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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
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
Ryan York
18 Oct 14 11:00:32
RT @IBDinvestors: Why you should be careful with these potential buy points http://t.co/uStxlkHeTJ $ATHM $SNCR http://t.co/rmfE4SzvoN
John Michael
18 Oct 14 10:52:15
RT @IBDinvestors: Why you should be careful with these potential buy points http://t.co/uStxlkHeTJ $ATHM $SNCR http://t.co/rmfE4SzvoN
jatinam
18 Oct 14 10:51:28
RT @IBDinvestors: Why you should be careful with these potential buy points http://t.co/uStxlkHeTJ $ATHM $SNCR http://t.co/rmfE4SzvoN
Investors.com
18 Oct 14 10:45:22
Why you should be careful with these potential buy points http://t.co/uStxlkHeTJ $ATHM $SNCR http://t.co/rmfE4SzvoN
China Stock Research
18 Oct 14 06:34:06
Major moves up & down this week from from $ATHM $CMGE $DQ $NQ $SUYT $CHOP $CYOU $SCOK http://t.co/ajXPDE9Cwe
China Stock Research
18 Oct 14 00:09:55
Week in review - Oct 17, 2014 http://t.co/OTttIyfV2A Pops & drops from $ATHM $CMGE $DQ $NQ $SUYT $CHOP $CYOU $SCOK
SL50
17 Oct 14 07:39:24
Best performing SL50 stocks for the week so far: $ATHM $RDNT $ZLTQ, etc.
wizzwatch
17 Oct 14 06:29:41
$ATHM - Autohome, Inc. http://t.co/2JN2foY0Zq
ok_trader
17 Oct 14 05:42:12
Watching $ATHM, the stock is back above its 50-day line.
Tech$tocks
17 Oct 14 01:44:04
china stocks on nasdaq/nyse looking good.. look at $CTRP $DANG $BABA $BIDU $ATHM !! keeping close eye on these ones for todays session
chartguy89
16 Oct 14 22:26:45
ATHM 46.51 Stock Charts $ATHM Autohome Inc. ADS (NYSE) Last Updated: 10/17/2014 00:26:46 ATHM Stock Chart - 1 http://t.co/bVGY3Z5g81
Henry@Futurist
16 Oct 14 19:25:25
China Stocks Run Against Grain On U.S. Markets http://t.co/F6WizIoJcE #IBDNews via @IBDinvestors $BABA $BIDU $ATHM $XRS $TEDU
China_Meltdown
16 Oct 14 16:55:33
RT @ChinaStockRsrch: China Stocks Run Against Bearish Grain On U.S. Markets http://t.co/jMSQfk1jpW $BABA $BIDU $ATHM $FXI $PGJ
China Stock Research
16 Oct 14 15:47:22
China Stocks Run Against Bearish Grain On U.S. Markets http://t.co/jMSQfk1jpW $BABA $BIDU $ATHM $FXI $PGJ
TV_Trading Ideas
16 Oct 14 15:14:09
Wishful $ATHM http://t.co/NfEJGNcegx
Patrick Dowd
16 Oct 14 11:28:20
@TA_Alerts What's your plan for $ATHM ? Thanks!
11 Charts Report
16 Oct 14 11:25:26
@TwentyOneTrader $ATHM doing the same.
9to5Investor
16 Oct 14 10:45:40
$ATHM looks very good here, chinese stocks all strong today
newbietrader
16 Oct 14 10:18:27
two good day in a row, chinese stocks are re-bounding, nice! $ATHM, $VIPS, $SFUN, $HGSH, $SCOK. shorter should be careful from this point
Matkal Trading
16 Oct 14 10:16:51
$ATHM today we are getting out of ATHM with a 15.74% gain.
SL50
16 Oct 14 09:30:53
Best performing SL50 stock so far this week: $ATHM. http://t.co/ZT77b9VTOr
Don Fishback
16 Oct 14 04:35:58
Negative Implied Borrow Rate $SGY, $ATHM, $DRYS, $JKS, $ARLP http://t.co/UgIe27K2w7
OptionApps
16 Oct 14 04:35:58
Negative Implied Borrow Rate $SGY, $ATHM, $DRYS, $JKS, $ARLP http://t.co/VMXcN9kz9z
Trade4Me
16 Oct 14 01:48:00
Here is the stock signals dated 10/16 : $IDCC , $ATHM more details: http://t.co/M3yfSC1ccS
chartguy89
15 Oct 14 22:26:30
ATHM 45.12 Stock Charts $ATHM Autohome Inc. ADS (NYSE) Last Updated: 10/16/2014 00:26:29 ATHM Stock Chart - 1 http://t.co/DQQGrksp7x
TAMAYO
15 Oct 14 20:09:36
RT @AndrewRocco1: $ATHM $PCRX $FRGI $PANW -> few names holding up well.
Andrew Rocco
15 Oct 14 19:53:01
$ATHM $PCRX $FRGI $PANW -> few names holding up well.
Joe Hentges
15 Oct 14 19:00:10
New market analysis post and video "Fear Factor" http://t.co/aFvlRAJ8kU $DJIA $DAX $QIHU $ATHM $YOKU $YY #stocks #stockmarket
Jeffrey Jones
15 Oct 14 13:32:05
@BenCBanks Agreed I would like to see a second closing day above 50 day. $athm
				
				
By  +Follow December 10, 2013 5:02PM
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