Autohome (ATHM): Automotive information for Chinese consumers

By Paul Goodwin, Chief Analyst, Cabot China & Emerging Markets Report
From Cabot Wealth Advisory 10/28/14 Sign up for Cabot Wealth Advisory—it’s free!

My stock pick today is Autohome (ATHM), a Chinese company I’ve been following for months for Cabot China & Emerging Markets Report, which I write. I had BitAuto (BITA), a Chinese competitor of Autohome, in the Report’s portfolio until earlier this month.

The intriguing thing about Autohome is that it showed up in last week’s Cabot Top Ten Trader, an advisory that features the 10 strongest stocks of the previous week. Here’s what Top Ten had to say about the stock.

“Autohome is the leading provider of automotive information to Chinese consumers, who use its websites to research both new and used automobiles. The company is only six years old, but it’s surpassed BitAuto—now number 2—by providing a more valuable user experience, and the resultant increase in traffic means Autohome is now where all the dealers and manufacturers come first to advertise! Advertising provides 81% of revenues, while dealer subscription accounts for 19%. In 2010, the Chinese automotive market surpassed the U.S. as the largest in the world, and over the past four years, Autohome’s revenues have grown at the astounding rates of 77%, 79%, 70% and 70%. That’s expected to slow down as the company’s sales have expanded north of $250 million, but it’s still reflective of the power of the Chinese market’s growth, and we think that’s the main reason this stock refuses to be kept down.”

To receive future updates on ATHM as well as additional high-potential Chinese stocks, consider taking a risk-free trial subscription to Cabot China & Emerging Markets Report.

Company Details

Autohome Inc. (ATHM)
Tower B, CEC Plaza
10th Floor
Beijing, 100080 China
86 10 5985 7001

ir.autohome.com.cn 

Index Membership: N/A
Sector: Technology
Industry: Internet Information Providers
Full Time Employees: 1,191