20141030-工银国际-VIEWPOINTS_EXPRESS_12页_619kb_619kb

Market Report Summary - 30 October 2014

Core Content

This document provides a market report from 30 October 2014, including updates on Autohome.com (ATHM.US), highlights from the TMT sector, and an overview of various financial indicators, equity indices, commodity prices, currencies, and interest rates.

Autohome.com (ATHM.US)

Key Analysis

• Rating: HOLD
• Target Price (TP): US$40 (up from US$34)
• Reason for TP Increase: Strong growth in online auto marketing and the company's expansion into monetization beyond advertising.
• Revenue Growth:
  • 2014E expected to see stellar topline growth, with performance-based ads set to ramp up in 2H14.
  • 2015E projected to grow by 47% YoY.
• Margin Pressure: Early investments in mobile and transaction platforms will negatively impact margins in the second half of 2014.
• Valuation: The stock is currently trading at 33x 2015F PE, which reflects fundamental strength.
• Business Model: The company is transitioning from a pure advertising model to a more diversified monetization model.
• Market Performance:
  • Price (29 Oct): US$49.57
  • Upside: -19.3%
  • 52W High: US$57.93
  • 52W Low: US$26.00
  • Market Cap: US$5,211.6 million
  • Total Issued Shares: 105 million

TMT Sector Highlights

• Alipay and Apple Pay Collaboration: There are potential collaborations on mobile payment services.
• Chinese Fitness App 'Paopao': Raised RMB 8-digit Pre-Series A funding from Legend Capital for expansion and marketing.
• Sohu's Acquisition of 56.com: Expected to bid more than USD12.9 million, with a dual brand strategy and Zhou Juan's exit.
• Huawei's 4G Strategy: Aiming to capitalize on the growing 4G user base, with 154 of the 331 global 4G networks built by Huawei.
• App Developer Punished: The Youjia app was banned due to the promotion of salacious content.

Stock Market Performance

Asian Equities

• Nikkei 225: Price 15,554, up 1.5%
• Korea KOSPI: Price 1,961, up 1.8%
• Taiwan TWSE: Price 8,904, up 1.5%
• India Sensex 30: Price 27,098, up 0.8%

US/European Equities

• DJIA: Price 16,974, down 0.2%
• S&P 500: Price 1,982, down 0.1%
• NASDAQ: Price 4,549, down 0.3%
• UK FTSE 100: Price 6,454, up 0.8%
• Germany DAX: Price 9,083, up 0.2%
• France CAC40: Price 4,111, down 0.0%

Key Financial Metrics (Autohome.com)

Other Indicators

Commodity Prices

• WTI oil: $82.2, up 1.0%
• Gold: $1,223.8, down 0.4%
• Copper: $6,795.0, flat
• Aluminium: $1,996.0, flat
• Reuters/Jefferies CRB fut.: 274.9, up 1.0%
• Baltic Dry Index: 1,428.0, up 2.4%

Interest Rates

• HIBOR 3m: 0.38%, down 0.002%
• USD LIBOR 3m: 0.23%, flat
• UST yield 3m: 0.01%, flat
• UST yield 10y: 2.32%, up 0.021%

Summary of Key Points

• Autohome.com is expected to experience strong topline growth in 2014 due to its dealer subscription service and expansion into performance-based advertising.
• The company is investing in mobile and transaction platforms, which will negatively impact margins in the second half of 2014.
• The TMT sector saw several notable developments, including potential collaboration between Alipay and Apple Pay, funding for the fitness app 'Paopao', and Sohu's acquisition of 56.com.
• Huawei is aiming to benefit from the growth of 4G users by expanding its market share.
• Youjia app was banned due to its promotion of salacious content.
• Equity indices across Asian and US markets showed mixed performance, with some indices rising and others declining.
• Commodity prices and interest rates were also reported, showing slight variations in value.