AUTOHOME(ATHM)2025-05-08 13:02Financial Data and Key Metrics Changes - In Q1 2025, net revenues were RMB 1,450 million, with media services revenues at RMB 242 million, lead generation services revenues at RMB 645 million, and online marketplace revenues at RMB 566 million, reflecting a 2% year-over-year increase [19] - Cost of revenue was RMB 316 million, with a gross margin of 78.3%, down from 81.3% in the same period last year [19] - Operating profit was RMB 233 million, compared to RMB 276 million in the previous year, and adjusted net income attributable to Autohome was RMB 421 million, down from RMB 494 million [20] - Non-GAAP basic and diluted earnings per share were both 0.88, compared to 1.02 in the same period of 2024 [20] - As of March 31, 2025, cash, cash equivalents, and short-term investments totaled RMB 21,930 million [20] Business Line Data and Key Metrics Changes - Revenues from new energy vehicles (NEVs) and the new retail business increased by 72.6% year-over-year [14] - Revenues from data products grew by over 5% year-over-year [17] - The average mobile daily active users (DAUs) reached 76.92 million in March 2025, up 10.8% from the previous year [13] Market Data and Key Metrics Changes - Overall new car sales in Q1 2025 increased by 6% year-over-year, with NEV sales growing by 36%, although this was a slowdown from over 40% growth in the second half of the previous year [26] - The average profit margin in China's auto industry was only 3.9%, significantly lower than the 5.6% average for downstream industrial enterprises [26] Company Strategy and Development Direction - The company is focused on enhancing user experience and expanding its new retail network, aiming to establish nearly 200 space stores and satellite stores nationwide [10][30] - Autohome is evolving from a pure automotive media vertical into a comprehensive auto lifestyle ecosystem, integrating online and offline services [18] - The company is committed to technological innovation, particularly in AI applications, to improve operational efficiency and user experience [9][15] Management Comments on Operating Environment and Future Outlook - Management noted ongoing structural adjustments in the auto market, with NEVs becoming the main growth driver and continued policy support expected to lead to steady growth [28] - The company anticipates that the price war in the auto industry will continue in the short term but believes that the room for further price declines is limited [39] - Management emphasized the importance of transforming dealership operations to adapt to the decline in internal combustion engine vehicle sales and the rise of NEVs [40] Other Important Information - The company has authorized a share repurchase program of up to USD 200 million, with approximately USD 128 million already executed as of May 2025 [21] - The company plans to maintain a stable dividend payout of no less than RMB 1.5 billion for the year [49] Q&A Session Summary Question: What is the implication of the auto industry performance in Q1 for Autohome and the outlook for 2025? - Management noted that while new car sales grew, NEVs stood out despite a slowdown in growth rate, and they expect ongoing structural adjustments with NEVs as the main growth driver [25][28] Question: What is the progress on the new retail model and future plans? - Management reported the establishment of 29 space stores and 170 franchise satellite stores, with plans to exceed 500 locations by the end of 2025 [30][32] Question: What is the status of the Harris acquisition and its impact on Autohome's strategy? - The acquisition is still pending regulatory approval, and management reiterated their commitment to the O2O model and NEV development [37] Question: When will OEM pricing stabilize and what is the impact of dealer bankruptcies on lead generation? - Management expects the price war to continue in the short term but believes the market will stabilize after inventory clearance and subsidy transitions [39] Question: What updates are there on the new retail model and shareholder return plans? - The new retail strategy has evolved to enhance buyer experience and reduce transaction costs, with a commitment to maintain stable shareholder returns including dividends and share repurchases [48][49] Question: How will trade tensions impact the car market and Autohome's business? - Management believes the impact of trade tensions will be limited, as the domestic market is primarily driven by NEVs and has a low market share of US brands [53]