Bitauto Hldg Ltd (ADR) (NYSE:BITA), a leading provider of internet content and marketing services for China’s fast-growing automotive industry, today announced that an investor consortium comprised ofTencent Holdings Limited (SEHK: 00700) (“Tencent”), a leading provider of comprehensive internet services in China, Baidu, Inc. (Nasdaq: BIDU) (“Baidu”), the leading Chinese language internet search provider, JD.com, Inc. (Nasdaq: JD) (“JD.com”), a leading e-commerce company in China, Bitauto and other investors has entered into definitive agreements pursuant to which the investor consortium agrees to make investments totaling US$550 million in cash in Yixin Capital Limited (“Yixin Capital”), a subsidiary of Bitauto primarily engaged in e-commerce-related automotive financing platform business.
Bitauto will hold an approximately 47% equity stake in Yixin Capital on a fully diluted basis and will have control over Yixin Capital with majority of voting power at the board upon closings. Bitauto will continue to consolidate the financials of Yixin Capital.
The combination of data, user and capital resources contributed by the investors will allow Yixin Capital to perform more accurate and efficient credit evaluations and increase its ability to provide financing products and services to targeted customers. Yixin Capital will also benefit from access to its partners’ broad user resources, which will help to drive customer acquisition and brand awareness. The investor consortium, which includes companies with leading financial services businesses, will explore additional capital funding opportunities with Yixin Capital as it continues to expand its market share.
Mr. William Li, chief executive officer and chairman of Bitauto, said, “Yixin Capital is an important part of Bitauto’s platform as we work to create the best possible car purchasing experience for China’s new and used car consumers. Today, we are delighted to announce this new investment from a roster of leading global companies, including strategic partners Tencent, Baidu and JD.com. We are confident that with the strong support of our partners, Yixin Capital is well positioned for long-term success in China’s online automotive financing industry.” (Original Source)
Shares of Bitauto closed yesterday at $28, up $0.50 or 1.82%. BITA has a 1-year high of $39.47 and a 1-year low of $16.09. The stock’s 50-day moving average is $26.80 and its 200-day moving average is $23.74.
On the ratings front, Bitauto has been the subject of a number of recent research reports. In a report issued on July 8, Macquarie analyst Wendy Huang initiated coverage with a Buy rating on BITA and a price target of $34, which represents a potential upside of 21.4% from where the stock is currently trading. Separately, on June 7, HSBC’s Chi Tsang assigned a Buy rating to the stock and has a price target of $26.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Wendy Huang and Chi Tsang have a total average return of 6.2% and 8.8% respectively. Huang has a success rate of 100.0% and is ranked #2555 out of 4083 analysts, while Tsang has a success rate of 59.5% and is ranked #691.
Bitauto Holdings Ltd. is engaged in the provision of internet content and marketing services for China’s automotive industry. It operates through the following segments: Bitauto.com, Toache.com and Digital marketing solutions. The Bitauto.com segment provides advertising services to dealers and automakers on the bitauto.com website. The Toache.com segment engages in the provision of listing services to used automobile dealers that enable them to display used automobile inventory information on the toache.com website and partner websites. It also provides advertising services to used automobile dealers and automakers with certified pre-owned automobile programs in toache.com. The Digital marketing segment provides automakers with one-stop digital marketing solutions, including website creation and maintenance, online public relations, online marketing campaigns and advertising agent services.