Investors See Better Road Ahead for Autohome Despite Profits Setback Key T akeaways: Autohome’s adjusted net income tumbled 40% during the first quarter, less than the 50% drop expected by the market. Relieved investors sent the share price soaring 19% over three trading days The company’s business is expected to pick up in the second half of the year as auto production normalizes, policy support kicks in and market demand rallies By Lau Ming For the Chinese car industry, this year has been the toughest of times. Another wave of Covid in March, coupled with chip supply problems, put the brakes on an automotive business recovery and sent sales of new vehicles screeching to a halt. And yet investors have cheered the latest quarterly results from leading vehicle trading platform Autohome Inc. (NYSE: ATHM ), even though the numbers show the company has suffered alongside other players in China’s car industry. Why has the market shrugged off the profit setback and kept faith with Autohome? Autohome, a veteran of China’s auto trading scene, reported its revenues fell 20% during the first quarter to 1.47 billion yuan ($219 million).