ATHM: Autohome Inc Stock Analysis

Autohome Inc (ATHM) is an online area for automobile consumers in China. ATHM is engaged
in provision of online advertising dealer, subscription services in the PRC. Through its websites
and mobile applications content can be delivered to automobile owners and buyers. Services are
provided to automakers and dealers plus ad agencies with automakers and dealers and ad
agencies who represent automakers and dealers in the automobile industry. Professionally
produced content is carved out by the editorial team in domestic markets.
Company's professionally produced content is created by editorial team and comprises
automobile related reviews and articles, pricing trends in numerous local markets as well as
photos and video clips. The database also includes new and used automobile listings and
information for promotion. The dealer subscription services allow dealers for inventory
marketing and servicing through websites.
Autohome Inc is a leading online destination for automobile consumers in China. The unaudited
financial results for the quarter ended March 31, 2016. Net revenues rose by 75.5% Y-O-Y to
RMB 1093.5 million (US $169.6 million) exceeding the Company's original guidance of
RMB1060 million (US $164.4 million).
Analysis of Results
In March 2016, number of average daily annual unique visitors accessing the company's mobile
websites and mobile applications reached 8.8 million and 7.2 million respectively. This shows an
increase of 65.3 percent in total number of average daily unique visitors on platforms that are
mobile compared with March 2015 and increase of 16.3 as against December 2015.
Strong media and leads generation value is another factor. In the first quarter of 2016, media
services revenue and leads generation services rose by 22.6% and 46.8% compared to the
corresponding period of 2015.
Around 4957 new vehicles were hold through the ATHM business to consumer transaction
platform including direct sales and commission based business models in Q1, 2016. James Qin,
CEO of ATHM indicated they were "pleased to report another strong quarter of better than
expected growth despite seasonality." Solid operational and financial performance shows
continued execution of critical growth strategies such as expanding consumer audience and core
advertising as well as emerging transaction marketplace business.
Ability to execute growth strategies to reinforce strengths and competitive advantages following
use of leading online media and transaction facilitator for automobile consumers in China is yet

another critical point. Increase in net revenues and net income for Q1 demonstrates aim to
accelerate revenue growth from diversified businesses and generate consistent profit through
efficient cost structure.
Conclusion
The foundation of the business will be strengthened through a focus on expansion, operational
efficiency and value creation through large number of opportunities in the market. This makes it
perfect for investors who want stable and healthy returns.
Photo Sources: Wikipedia
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