Bitauto Holdings Limited (NASDAQ: BITA)
Bitauto Holdings Limited (BITA), an internet marketing service for the automotive industry yesterday reported their fourth quarter and fiscal 2015 financial results. Bitauto reported fourth quarter revenues of $191.3 million which was an increase of 27.1% of fourth quarter of the previous year.
Bitauto Holdings Limited CEO’s Comments
Mr. William Li, chief executive officer and chairman of Bitauto commented, “We are pleased to announce healthy results for the fourth quarter of 2015, with revenue growing 27.1% year-over-year. For the full year 2015, Bitauto made significant progress across our businesses and delivered strong growth. Our top-line grew 63.1% year-over-year, with revenue from our EP platform growing 122.3% year-over-year in 2015.”
“In 2015, Bitauto generated over 100 million sales leads for our automobile customers, with approximately 70% of leads generated from mobile. Our EP platform maintained its industry leading position with peak paid customers exceeding 24,900 in 2015. We continued to make strategic investments and expanded our automobile transaction services offering in order to optimize consumers’ automobile buying experience online and offline. We have successfully developed various growth initiatives in Bitauto’s automobile transaction services business which have been well received by the market.”
“Looking to 2016, we will continue to execute on Bitauto’s core business strategies to strengthen our industry leadership. First, we will continue to optimize our offline service infrastructure, further develop our transaction services, including automobile transactions, CRM and automotive financing services, and improve the overall efficiency of our transaction services. Second, we will strive to further improve the automobile buying experience for customers and enhance Bitauto’s brand in the automobile transaction market. Third, we will continue to increase our mobile monetization capabilityfrom core businesses, such as advertising and transaction services, through tighter integration with our mobile offerings.” PR Newswire
BITA Technical Analysis
BITA gapped up in price yesterday to $23.98, up from the prior day’s close of $23.55, which is a 2% increase in price.Taking a look at the daily chart we can see that the last time BITA traded above this price level was on January 28th when it traded at $24.87. Taking a closer look at the daily chart we can see that BITA has been on a recent upswing bouncing off of its 52 week low price of $16.09 reached on February 11th. BITA has a float of 26.02 million shares and is trading over 4 times the normal daily trading volume. For trading purposes, my entry point would have been $24 looking for a run to $25. My stop loss would have been $23.75, fearing anything below that and the stock would start to fill in the gap up.
Bitauto Holdings Limited provides Internet content and marketing services for the automotive industry in the Peoples Republic of China. The company operates in four segments: bitauto.com Advertising Business, EP Platform Business, taoche.com Business, and Digital Marketing Solutions Business. The bitauto.com Advertising Business segment provides advertising services, including new automobile pricing and promotional information, specifications, reviews, and consumer feedback to dealers and automakers on its bitauto.com Website. The EP Platform Business segment provides Web-based and mobile-based integrated digital marketing and customer relationship management (CRM) applications to automobile dealers in China. This segments platform enables dealer subscribers to create their own online showrooms, list pricing and promotional information, provide dealer contact information, place advertisements, and manage customer relationships. It also provides automobile transaction, CRM, and automotive financing services to automobile customers. The taoche.com Business segment provides used automobile listing services to automobile dealers and advertising services to automakers and automobile dealers. Its taoche.com Website allows consumers to navigate and select used automobile inventory from its database. The Digital Marketing Solutions Business segment provides one-stop digital marketing solutions, such as Website creation and maintenance, online public relations, online marketing campaigns, and advertising agent services. The company also distributes its dealer customers’ automobile pricing and promotional information through its partner Websites, including portals operated by Tencent, Netease, and Qihoo 360, as well as social networking Websites and Internet video Websites. In addition, it provides customer services and training to dealer customers. The company was founded in 2000 and is headquartered in Beijing, the Peoples Republic of China. Yahoo Finance