AUTOHOME(ATHM)2024-11-07 01:41Financial Data and Key Metrics Changes - Net revenues for Q3 2024 were RMB 1.77 billion, with Media Services revenues at RMB 326 million, Leads generation services revenue at RMB 831 million, and Online Marketplace and Others revenue at RMB 618 million, reflecting a 3.1% year-over-year increase [27] - Cost of revenue increased to RMB 408 million from RMB 374 million year-over-year, resulting in a gross margin of 77%, down from 80.4% in the same period last year [28] - Operating profit was RMB 83 million, compared to RMB 166 million in Q3 2023, and adjusted net income attributable to Autohome was RMB 497 million, down from RMB 604 million year-over-year [29] Business Line Data and Key Metrics Changes - Revenues from the online marketplace and others increased by 3.1% year-over-year, driven by the growth in the new retail business [10] - Revenues from NEV brands grew by 54% compared to the same period last year, significantly outpacing industry sales growth rates [22] - Revenue from data products increased by 8% year-over-year during the first nine months of 2024 [23] Market Data and Key Metrics Changes - The average mobile DAU increased by 5.6% year-over-year, reaching 72.87 million in September, indicating a strong position in the automotive media vertical [19] - Retail sales of new energy vehicles in September increased by 10.6% from the previous month, with domestic retail penetration of NEVs exceeding 50% for three consecutive months [38] Company Strategy and Development Direction - The company is focused on enhancing its integrated online-to-offline ecosystem strategy, particularly in lower-tier markets, through initiatives like the Hundred Cities, Trade-in for New [9][14] - There is a commitment to driving product innovation and broadening business horizons while leveraging partnerships, particularly with Ping An Group, to enhance competitive advantages [14][47] - The company aims to optimize operational efficiency to support long-term high-quality development [26] Management Comments on Operating Environment and Future Outlook - Management noted that the ongoing price war in the automotive industry has negatively impacted profitability, with the average profit margin of the auto industry at only 4.6% [36] - Despite current challenges, management remains optimistic about the long-term growth potential of the auto market, particularly with the development of the NEV industry and supportive government policies [39] - The used car market is under pressure due to the new car price war, but there are expectations for potential growth in the B2B sector [53] Other Important Information - The company has a strong balance sheet with cash, cash equivalents, and short-term investments of RMB 23.06 billion as of September 30, 2024 [31] - A new share repurchase program was authorized for up to USD 200 million, and a cash dividend of USD 1.15 per ADS was approved, reflecting confidence in business and future developments [32][33] Q&A Session Summary Question: Impact of ongoing price war and trade-in program on the industry and Autohome - Management observed that the price war has eased slightly but continues to affect profitability, with retail sales growth only at 2.2% year-on-year [35][36] Question: Update on the new retail model of NEVs and expansion pace - Management reported over 50 stores in the Autohome space and satellite model, facilitating cost efficiency for OEMs and generating extra revenue for Autohome [41][43] Question: View on the 2025 used car market and shareholder return progress - Management indicated that the used car market remains sluggish due to new car price pressures, but there are plans to explore B2B opportunities [50][53] Question: OEMs' advertising budget outlook and contract renewals with dealers - Management expects OEMs to balance advertising budgets more reasonably next year, with stable contract renewals for lead subscription packages [58][60]