Autohome (ATHM) offers China Auto Ownership Play

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Autohome (ATHM) is expected to price tonight and has raised the proposed price range from $12-$14 to $14-$16. At the mid-point of the range this company will have a heady market cap of $1.5B or about 10x 2013 estimated sales. The company is very profitable however.

A similar company, Bitauto (BITA) came public in 2010 and after struggling for two years tripled this year from $10 to $30/share. Bitauto shares are trading at 7x sales but they are not as profitable as Autohome.

Revenues of $119M for 2012 were up 69% with surprising profits of . . .

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