BITA

Bitauto Hldgs Shs Sponsored American Deposit Receipt Repr 1 Sh

TMT


Presented:12/18/2017
Price:$31.08
Cap:$2.23B
Current Price:$15.94
Cap:$1.14B

Presented

Date12/18/2017
Price$31.08
Market Cap$2.23B
Ent Value$3.04B
P/E RatioN/A
Book Value$19.61
Div Yield0%
Shares O/S71.73M
Ave Daily Vol1,389,561
Short IntN/A

Current

Price$15.94
Market Cap$1.14B
Bitauto Holdings Ltd. engages in the provision of investing administrative and consulting services to its subsidiaries and internet content and marketing services. It operates through the following segments: Advertising Business, EP Platform Business, and Digital Marketing Solutions Business segments. The Advertising Business segment comprises of advertising services. The EP Platform Business segment is the dealer subscription services targeted to the automobile market, and additional transaction services, such as automobile transactions, CRM and online automotive financial platform services. The Digital Marketing Solutions Business segments focuses on agent services. The company was founded by Bin Li on October 21, 2005 and is headquartered in Beijing, China.

Publicly traded companies mentioned herein: Autohome Inc (ATHM), Baidu Inc (BIDU), Bitauto Holdings Ltd (BITA), China Literature Ltd (772 HK), JD.com Inc (JD), Tencent Holdings Ltd (700 HK), Vipshop Holdings Ltd (VIPS), Yixin Group Ltd (2858 HK)

Highlights

The recent sell off in shares of Bitauto Holdings (BITA) following Yixin’s November 16 global equity offering is misguided, in the presenter’s opinion. He has used the weakness to establish a position at ~$30, as the risk/ reward is favorable. Fundamentally, BITA, which provides internet advertising services for the automotive industry in China, is a good asset that has seen its business improve over recent quarters. And, based on the value of unrestricted cash on its balance sheet, and its stake in Yixin, there appears to be a margin of safety up to $33.94. Thus, he reasons investors have 13% upside to a valuation where “the whole core business, which is growing its top line 20% annually, can be had for free”.

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