Focus Media (002027): Short-term performance under pressure and long-term optimism about economic growth brought about by economic recovery

Focus Media (002027): Short-term performance under pressure and long-term optimism about economic growth brought about by economic recovery

The main points of the report describe the company’s release of its 18-year annual report and 19-year quarterly report. The company’s 18-year revenue reached 145.

51 ppm, an increase of 21 in ten years.

12%, net profit attributable to mother 58.

23 ppm, a reduction of 3 per year.

03%, 19Q1 company achieved revenue of 26.

11 trillion, down 11 a year.

78%, net profit attributable to mother 3.

400 million, down 71 every year.

81%, 19H1 is expected to achieve net profit attributable to mother 7.

4 ppm-11 ppm, a reduction of 77 per year.

88% -67.


Incident review The company’s performance growth in 18 years 四川耍耍网 and 19Q1 was affected by the dual effects of the macro environment and the cost of expanding the screen: 1) Macro environment: The downturn in the macro economy led to a contraction in advertisers’ demand for delivery.

95% / 11.

88% /-11.

78%, the company ‘s revenue growth is under pressure; 2) Screen expansion: In 18 years, the company started a new round of screen expansion, driving incremental growth in media resource rents, equipment depreciation, and labor costs.

20,000 (elevator TV 72.

40,000, elevator poster 193.

80,000), with an annual growth rate of 75%, among which elevator posters are expanding rapidly in cities below the third tier, and the number of elevator televisions in cities below the second tier is accompanied by high growth. It is expected that the company will expand the expansion screen in 19 years, with a total of 275 in 19Q1.

50,000, only 9 in the quarter.


The company’s advertiser structure has shifted from Internet customers to consumer goods customers, and FMCG (fast-moving consumer goods) customers highlight structural opportunities.

In 18 years, the company ‘s daily consumer goods customer revenue increased, and the proportion of Internet customers ‘revenue declined. In 19Q1, Internet advertisers’ budgets for expansion expanded, and the company ‘s sales strategy shifted to traditional consumer goods customers.

FMCG customers have a large amount of investment in the advertising market but are expanding in the building media. At the same time, the advertising budget is relatively stable and sustainable. The company can alleviate the current income-side pressure by tapping the advertiser budget of fast-moving consumer goods.

In the long run, we are still optimistic about the business growth brought about by the improvement of the macro environment.

The economic recovery will increase the demand for advertisers. The first-tier and second-tier cities will break through the potential for consumption and the third-tier and fourth-tier cities will increase their consumption capacity. New-point revenue generating companies are expected to usher in the release of performance.

In addition, Ali’s data plus holdings for the company will drive the company’s customers to expand into long-tail and performance advertisers, and the revenue space will further expand.

Profit forecast: The company’s short-term performance is under pressure but in the long-term we are still optimistic about the company’s business growth. It is recommended to pay attention to the marginal improvement in revenue caused by changes in the macro environment./ 20/21 year net profit attributable to mothers was 32.



1.6 billion, EPS is 0.



36 yuan / share, corresponding to PE32X / 25X / 19X.

Risk Warning: 1.

The macroeconomic downturn affects the demand 佛山桑拿网 of advertisers; 2.

Industry competition has intensified.