Autohome: 1Q26 preview: core business and new business both under pressure

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Autohome: 1Q26 preview: core business and new business both under pressure

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Autohome

1Q26 preview: core business and new

business both under pressure

Reiterate Rating: NEUTRAL | PO: 20.20 USD | Price: 16.59 USD

1Q26: expect enlarged revenue and profit decline 25 May 2026

We expect Autohome’s 1Q26 to accelerate its decline in topline and profit. We expect Equity

1Q topline to decline by 31% YoY to RMB1.0bn and adj. NP to decline by 59% YoY to

RMB160mn (16% margin). We expect advertising and auto dealers’ businesses to

Key Changesdeteriorate, due to the auto sales market’s decline. We expect Autohome’s new business,

transaction service, to experience revenue decline due to Co.’s business model change. (CNY) Previous Current

Price Obj. US$25.00 US$20.20

2026E EPS 12.91 8.71Lower estimates and PO

We expect the auto market’s headwind to persist, and it may take time for the new 2027E EPS 13.56 9.37

business to grow revenue and become profitable. Therefore, we cut FY26/27 adj. NP 2028E EPS NA 9.66

estimates by 33%/31%. We lower our DCF-based PO to USD20.2/HK$39 from

USD25/HK$49 (with an unchanged valuation method), as we lower the earnings Miranda Zhuang, CFA >>

Research Analyst

estimates, lower net cash per share to USD21 by factoring in dividend and share Merrill Lynch (Hong Kong)

repurchase payment, and update RMB/USD FX rate to 6.8. We reiterate our Neutral +852 3508 2879 miranda.zhuang@bofa.com

rating as further downside may be limited given the stock is trading at below cash level.

Joanna Du >>

Estimates (Dec) (CNY) 2024A 2025A 2026E 2027E 2028E Merrill Lynch (Hong Kong)

Net Income (Adjusted - mn) 1,988 1,549 1,023 1,101 1,134 joanna.du@bofa.com

EPS 16.34 13.11 8.71 9.37 9.66 Alex Liu >>

EPS Change (YoY) -4.6% -19.8% -33.6% 7.6% 3.0% Research Analyst