AUTOHOME(US:ATHM)2023-05-11 19:27Financial Data and Key Metrics Changes - Total revenue increased by 4% year-over-year to RMB1.63 billion, with adjusted net income up by 10.5% year-over-year to RMB484 million [6][20] - Adjusted net margin remained high at 31.5% [6] - Gross margin decreased to 77.8% from 82.7% year-over-year [19] Business Line Data and Key Metrics Changes - Media services revenue grew by 35.5% year-over-year to RMB361 million [18] - Revenue from new energy vehicle (NEV) brands increased by 67% year-over-year, significantly outperforming broader industry sales [13] - Lease generation services revenues were RMB681 million, while online marketplace and other revenues were RMB492 million [18] Market Data and Key Metrics Changes - Cumulative retail sales of passenger vehicles dropped by 13.4% from January to March 2023, but showed a year-over-year growth of 55.5% in April [24][25] - NEV sales increased by 22.4% year-over-year in Q1 2023, with penetration reaching 30.8% [27] Company Strategy and Development Direction - The company is focusing on a dual ecosystem strategy, enhancing user services and customer services [7] - Autohome is expanding its offline experience stores and franchise model for NEVs, aiming to enhance customer engagement and decision-making efficiency [31][32] - The company is committed to leveraging technological innovation and partnerships, such as with Baidu, to enhance its service offerings [8][41] Management Comments on Operating Environment and Future Outlook - Management noted a stabilization and recovery in the auto market, with expectations for increased consumer demand and supportive government policies [9][30] - The company anticipates continued growth in the NEV market, driven by new models and government incentives [28][29] Other Important Information - The company has a strong balance sheet with cash, cash equivalents, and short-term investments of RMB22.71 billion [20] - Autohome has repurchased approximately 3.94 million ADS for a total cost of approximately US$119 million as part of its share repurchase program [21] Q&A Session Summary Question: Structural opportunities in the auto market and NEV retail model progress - Management acknowledged a sluggish auto market in Q1 but noted signs of recovery in April, with NEV sales continuing to grow [24][25][30] - The new retail model for NEVs has gained recognition, with plans to expand franchise stores [31][32] Question: Used car business revenue growth and profitability - Despite pressures from new car price cuts, the used car business showed growth, with TTP revenue increasing by 25% year-over-year [36][37] - Management expects the used car market to grow due to rising car prices and improved synergy between used car and TTP businesses [39][40] Question: Challenges and opportunities from AIGC and large models - Management views AIGC as a tool for enhancing competitiveness and is integrating it into their ecosystem strategy [41][42] Question: Data products target and cash usage plans - The company plans to optimize existing data products and expand their client base, with a focus on new product launches [45][46] - Autohome is financially sound and aims to increase dividend payouts while exploring new investment opportunities [48][49] Question: OEM revenue growth outlook amid weak auto sales - Management believes that the auto industry is long-term and that fluctuations will not significantly impact OEMs [51] - The launch of new car models at the Shanghai Auto Show is expected to create more advertising opportunities [52][53]