China's Autohome Q4 revenue declines, announces $200 mln buyback

Overview

• China's leading auto platform's Q4 revenue declined yr/yr

• Adjusted net income for Q4 decreased yr/yr

• Company announced US$200 mln share repurchase program

Outlook

• Autohome focuses on AI to drive product innovation and optimize operations

Result Drivers

• MEDIA SERVICES DECLINE - Reduced advertising spending by ICE automakers amid shrinking sales volumes impacted media services revenue

• LEADS GENERATION DECLINE - Decline in leads generation services revenue due to fewer paying dealers and lower average revenue per dealer

• ONLINE MARKETPLACE GROWTH - Online marketplace and others revenues increased, driven by new retail business performance

Company press release: ID:nPn7SplhBa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy."

• Wall Street's median 12-month price target for Autohome Inc is $25.40, about 41.4% above its March 4 closing price of $17.96

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

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