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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
GRAYTRADE
16 Sep 14 15:25:18
$ATHM almost perfect plan this morning, I covered 43.91.
Kapida
16 Sep 14 11:20:59
$athm will break out soon
LT
16 Sep 14 10:56:25
RT @MichaelGLamothe: In a down tape, watch which stocks buck the trend, especially on volume: http://t.co/0q5DZ6hEPV $SLXP $STZ $ATHM
Peter Rumble
16 Sep 14 10:54:05
$ATHM $BITA $BIDU $FB Internet stocks with revenue growing more than 50% http://t.co/4dpujRGB2T $SPY $QQQ $GOOG $AAPL $IBM $BABA
Jean Fonteneau
16 Sep 14 07:53:32
@sandiegosam He is ultra long chinese internet holds similar positions in many names in that group, 18.5% of $ATHM among them...
Analyst Ratings
16 Sep 14 07:17:32
Want the latest analyst ratings on $MONT $AAOI $FGL $VLP $ATHM? Get Them Delivered to Your Inbox http://t.co/nSJuDsYidj
GRAYTRADE
16 Sep 14 07:08:33
$ATHM there ya go.... Get used to all this CASH I'll be making you guys every morning!!!
CapitalistWorld
16 Sep 14 05:54:55
2/2 Likely Candidates $BIDU $YOKU $QIHU $SFUN $YY $CTRP $ATHM $VIPS $WBAI
Michael Lamothe
16 Sep 14 04:54:27
In a down tape, watch which stocks buck the trend, especially on volume: http://t.co/0q5DZ6hEPV $SLXP $STZ $ATHM
Investors Hangout
16 Sep 14 02:30:34
Stock_Tracker: Autohome Inc. (ATHM) 45.09 $ATHM Stocks Stumble http://t.co/ACwxciNhju
Investors Hangout
16 Sep 14 02:30:12
Stock_Tracker: Autohome Inc. (ATHM) 45.09 $ATHM Stocks Stumble http://t.co/PEHPQvdaab
Stock_Tracker
16 Sep 14 02:26:55
Autohome Inc. (ATHM) 45.09 $ATHM Stocks Stumble At Open; Mobileye Rebounds at Investor's Business Daily - Mon http://t.co/OJExMRIq8h
chartguy89
15 Sep 14 22:26:45
ATHM 45.09 Stock Charts $ATHM Autohome Inc. ADS (NYSE) Last Updated: 09/16/2014 00:26:47 ATHM Stock Chart - 1 http://t.co/rapijFJ6kX
whalewisdom
15 Sep 14 20:30:19
New SC 13G from TIGER GLOBAL MANAGEMENT LLC concerning $ATHM. See details at http://t.co/NcxFusACkv
Michael Lamothe
15 Sep 14 18:54:14
In a down market, here are the top 3 gainers on volume from ChartYourTrade's Universe List $SLXP $STZ $ATHM http://t.co/gbt3X6t5AG
Tim Knight
15 Sep 14 17:46:32
$ANGI looks like it's going to be the $ATHM of the modern era. What a piece o' crap stock!
12Stocks.com China
15 Sep 14 16:51:30
#China #stocks $ATHM Autohome Inc. Daily:0.99% Weekly:-8.43% YTD:23.23% Trend:50 / 100 http://t.co/TfpnAHRVVl
GRAYTRADE
15 Sep 14 14:16:09
Tomorrow I like $ATHM short around 45.50, look out for my premarket notes on this tomorrow morning.
Investary Group
15 Sep 14 10:27:40
Warning for shareholders in $JMEI $JD $ATHM $VIPS $CTRP $WUBA $WBAI $KNDI $BIDU $QIHU ahead of Alibaba's $BABA IPO http://t.co/b0wmCBH4JF
Stock_Tracker
15 Sep 14 06:54:13
Autohome Inc. (ATHM) 45.89 $ATHM 4 Stocks Rising on Unusual Volume at The Street - 52 mins ago Often when abov http://t.co/AtnPk2a1Ol
Peter Rumble
15 Sep 14 06:38:09
$ATHM up 5%, $AAPL new highs $SPY
Large Void Bot
15 Sep 14 06:00:33
Popular: $RWLK, $AVNR, $AAPL, $TEX, $CTSH, $HALO, $EBAY, $ATHM, $DANG, $BUD, $CREE, $TSLA, $NOK, $UNG, $TRUE, $NKE, $NUE, $IRM
FilingsAnalysis
15 Sep 14 05:25:07
$ATHM, 13G filed by Tiger Global Management LLC http://t.co/YwxMSAFAy8
Johnny Trades
15 Sep 14 05:18:21
Let's see who gains more today in the China auto sector$BITA with a passive stake or $Athm @jimcramer favorite
Stockwinners.com
15 Sep 14 05:09:19
#Tiger Global reports 18.5% passive stake in #Autohome $ATHM #FreeMembership #BreakingNews http://t.co/Tg3urK67pp
ArizonaTrader
15 Sep 14 05:00:47
Watchlist 09/15/2014 http://t.co/0pRxPfJcrG $AKRX, $AMBA, $ATHM, $BITA, $FLT, $GILD, $ILMN, $JAZZ
NASDAQ
15 Sep 14 03:04:15
$ATHM - Statement of Ownership (sc 13g) http://t.co/57CmlVsScs
chartguy89
14 Sep 14 22:25:52
ATHM 44.65 Stock Charts $ATHM Autohome Inc. ADS (NYSE) Last Updated: 09/15/2014 00:25:53 ATHM Stock Chart - 1 http://t.co/misad6HYce
marderonthemarket
14 Sep 14 21:39:35
Not into the deterioration seen in $ATHM $GPRE $DSKY $JD $PEIX $PCLN $SLXP $YY $ZEN $Z #stocks
TV_Trading Ideas
14 Sep 14 20:12:38
ATHM Heavy Volume 230% change increase 99 IBD composite rating $ATHM http://t.co/h3R6n761AL
ollielindsay
14 Sep 14 19:16:41
Unusual Vol Up Sep 12 2014: $TNET $CNVR $ULTA $VNET $ATHM $XPO $MTN $ACAD $EBAY $GRUB $SHEN $YHOO $LULU $IPI $GLNG -> i'm long $YHOO $LULU
ArizonaTrader
14 Sep 14 18:05:39
Commented on: Watchlist 09/15/2014 $AKRX, $AMBA, $ATHM http://t.co/tQ4NciekFh http://t.co/l9jHelUtEt
ArizonaTrader
14 Sep 14 16:54:45
Watchlist 09/15/2014 http://t.co/15OTFng43O $AKRX, $AMBA, $ATHM, $BITA, $FLT, $GILD, $ILMN, $JAZZ
natetrades
14 Sep 14 15:50:59
$ATHM big volume friday https://t.co/juijD1KuQi via http://t.co/eJgBzSEGxE
InvestProfits
14 Sep 14 13:19:29
Autohome Inc. (ATHM) is Up +1.71%% http://t.co/UQtBfnhGZw $ATHM #invest #stocks #investing
lookn4wins
14 Sep 14 10:45:22
$NUGT Current Price $NUGT Most recent stock chart and technical analysis. $GPRO $FTR $ARTX $GLRE $FFIV $ATHM h http://t.co/EKGWln0iN0
Investors Hangout
14 Sep 14 09:49:11
Jake13: $ATHM Buy or Sell? Click here to find out if http://t.co/c42Ps2RSpj
Investors Hangout
14 Sep 14 09:49:11
Jake13: $ATHM Buy or Sell? Click here to find out if http://t.co/qWgccC7ill
Jake13
14 Sep 14 09:42:49
$ATHM Buy or Sell? Click here to find out if $ATHM is a buy hold or sell. Watching these stocks. $GE $TCK $GIL http://t.co/MrA7nDCFYd
DennyT
14 Sep 14 09:05:56
CFN.TO Company Info $CFN.TO $TLT $AZPN $FNMA $ATHM Opinion,Volume,Open,Company News,any other opinions on this http://t.co/ix70QsFABh
Investors Hangout
14 Sep 14 07:47:13
danrocks: $JCP On Watch $NBR $ATHM $QID $FTR $FBC http://t.co/brziN464sX
Investors Hangout
14 Sep 14 07:47:12
danrocks: $JCP On Watch $NBR $ATHM $QID $FTR $FBC http://t.co/3qgwpgGiGx
Investors Hangout
14 Sep 14 07:41:06
jim50: $ATHM Low Date=Sept-12-2014 Open=43.75 High=45.94 http://t.co/Q3fcwUYm53
Investors Hangout
14 Sep 14 07:41:06
jim50: $ATHM Low Date=Sept-12-2014 Open=43.75 High=45.94 http://t.co/CMqJ7e1SZF
jim50
14 Sep 14 07:38:03
$ATHM Low Date=Sept-12-2014 Open=43.75 High=45.94 Low=43.53 Close=44.65 Volume=3624500 http://t.co/AW7Gn9IGC7
iHangout
14 Sep 14 07:37:05
http://t.co/Vv1sYDyeQn danrocks: ZIP CASH TRAIN: $JCP On Watch $NBR $ATHM $QID $FTR $FBC http://t.co/oWlNtFyFvd
danrocks
14 Sep 14 07:35:31
$JCP On Watch $NBR $ATHM $QID $FTR $FBC http://t.co/Jt5msFJ4nJ
Investors Hangout
13 Sep 14 10:51:23
danrocks: $VNET Buzz $GLD $ATHM $UPRO $EPI $QCOM http://t.co/xnfNYUz7Qs
Investors Hangout
13 Sep 14 10:51:22
danrocks: $VNET Buzz $GLD $ATHM $UPRO $EPI $QCOM http://t.co/5fJBh87eFt
danrocks
13 Sep 14 10:36:03
$VNET Buzz $GLD $ATHM $UPRO $EPI $QCOM http://t.co/ACz9I0CsoR
				
				
By  +Follow December 10, 2013 5:02PM
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