Autohome Inc ADR
Summary (from latest annual report – 2015 and quarterly report 2016)
· Total equity : 766 million USD
· Market Cap is 2.2 billion USD ( last price of the stock is 19.57 USD)
· Autohome Inc through its subsidiaries is engaged in providing online advertising and dealer subscription services in China. The Company offers online destination for automobile consumers through its two websites and through mobile application
· Equity of total company increased from 546 million USD in 2014 to 766 million in 2016
· Company has 332 million USD in cash on account (from latest quarterly report 2016 year)
· Total equity – cash on account = 766 million USD – 332 million USD = 434 million USD
· In 2016 company has 5 million USD long-term debt, short – term debt was 35 million USD (In 2014 company had 3.5 million USD long-term debt , short-term debt was zero)
· In latest quarterly report - total equity increased to 766 million USD from 546 million USD in 2014, total debt was 40 million USD in 2016)
· Company's revenue increased in 2015 to 516 million USD from 317 million in 2014
· Net income in 2015 was 148 million USD, Net income in 2014 was 111 million USD
Opinion about the company
Fundamentally it is a good company and in the future we can expect its growth (Total debt is 40 million USD, company has 332 million USD in cash on account, ROE is around 23 %).
Autohome Inc ADR
Autohome Inc. (NYSE: ATHM) is the leading online destination for automobile consumers in China. Its mission is to enhance the car-buying and ownership experience for auto consumers in China. Autohome provides professionally produced and user-generated content, a comprehensive automobile library, and extensive automobile listing information to automobile consumers, covering the entire car purchase and ownership cycle. The ability to reach a large and engaged user base of automobile consumers has made Autohome a preferred platform for automakers and dealers to conduct their advertising campaigns.
Further, the Company’s dealer subscription and advertising services allow dealers to market their inventory and services through Autohome’s platform, extending the reach of their physical showrooms to potentially millions of internet users in China and generating sales leads for them. The Company offers sales leads, data analysis, and marketing services to assist automakers and dealers with improving their efficiency and facilitating transactions. As a transaction-centric company, Autohome operates its “Autohome Mall,” a full-service online transaction platform, to facilitate transactions for automakers and dealers. Further, through its website and mobile applications, it also provides other value-added services, including auto financing, auto insurance, used car transactions, and aftermarket services.
· Advertising services represents 69.3% of revenues, company generate advertising services revenues primarily from automakers. In each of 2013, 2014 and 2015, 75, 85 and 87 automakers operating in China purchased advertising services from Autohome – worth 1.3 billion USD
· Dealer subscription services represents 30.7% of revenues. Autohome generate dealer subscription services revenues through the sale of various subscription services packages at different prices, which enable dealers to market their vehicle inventories on their websites and mobile applications. All of their dealer subscription services are sold on a quarterly or annual fixed-fee basis – worth 600 million USD
· Standalone subsidiaries (established) : Cheerbright International Holdings Limited, Prbrownies Marketing Limited, Beijing Cheerbright Technologies, Beijing Shengtuo Chengshi Advertising, Shanghai You Che You Jia Advertising - worth 300 million USD
Total = 2.2 billion usd
Ping An, China’s second-largest insurer acquired 47.4 percent stake in Chinese automobile website Autohome Inc. from Australia’s Telstra for 1.6 billion USD in 2016. The deal will give Autohome access to Ping An Insurance's 50 million car insurance clients and 150 million financing clients, as well as a large network of car dealerships and factories as it moves from being a purely online platform to operating an offline sales platform in China in its next phase of development.