FAST NEWS: Autohome’s adjusted profit climbs in first quarter
The Latest: Online auto trader Autohome Inc. (ATHM.US; 2518.HK) on Wednesday reported a 3.3% drop in net profit to $54.6 million in the first quarter of this year, while its non-GAAP adjusted profit rose 2.2% to $68.4 million.
Looking Up: During the period, the company’s total revenue increased by 4.9% to $223 million, mainly benefiting from increases in leads generation services and online marketplace revenue of 6.7% and 13%, respectively, which offset a 9.4% decline in media services revenue.
Take Note: The company’s total operating expenses rose 13% to 156 million in the first quarter, mainly due to a 22.6% increase in sales and marketing expenses.
Digging Deeper: With government measures to boost auto consumption, backed by promotions from manufacturers, powered a 5.6% rise in Chinese passenger car sales last year to 21.7 million units, making China the world’s biggest auto market. Under the favorable environment, coupled with the satisfactory sales performance of new energy vehicles and the expansion of online marketplace services, Autohome recorded an increase in both revenue and net profit last year.
Market Reaction: Autohome’s Hong Kong shares rose on Thursday to up 5.1% at HK$55.6 by the midday break. The stock now trades in the middle of its 52-week range.
Translation by A. Au
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