The Zhitong Finance App learned that Auto Home-S (02518) is now up nearly 5%. As of press release, it has risen 4.7% to HK$55.7, with a total market value of nearly HK$27 billion.

According to the news, Auto Home previously announced that it will pay cash dividends of 0.57 US dollars per American depository share, or 0.1,425 US dollars per common share, totaling about 500 million yuan. The dividend is expected to be paid to common stock holders on or around August 16. Zeng Yan, the company's chief financial officer, said that dividends directly reflect the strong cash flow and stable balance sheet that the company continues to generate from its business. Looking ahead, we are confident about the company's growth prospects and are committed to creating value for all shareholders.

Yamato previously published a report stating that the main positive surprise of Auto Home's first quarter results was that net profit was better than expected. The bank currently expects the company's net profit to continue to grow in the second half of the year and achieve positive profit growth throughout the year. Yamato indicated that Auto Home's revenue growth in the past two quarters was better than market expectations, giving the market room to increase its revenue forecast for this year. The bank expects that the recovery in Auto Home's media service revenue in the second half of the year will drive stock price revaluation, and the announcement of a dividend in the first half of the year is a recent catalyst for the stock. The bank raised its target price from HK$70 to HK$74, maintaining a “buy” rating.