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Depth-Company-Focus Media (002027): Significant growth in performance; industry tightening; unhindered company expanding significantly

01/04/2020

Depth * Company * Focus Media (002027): Significant growth in performance, industry tightening, unhindered companies, substantial expansion

The company released its 2018 annual report and achieved operating income of 145.

51 ppm, an increase of 21 in ten years.

12%, net profit attributable to shareholders of the parent company58.

23 ppm, a reduction of 3 per year.

03%; revenue of 26 in the first quarter of 2019.

11 ‰, a decrease of 11 per year.

78%, net profit attributable to shareholders of the parent company.

40 ‰, a decrease of 71 per year.

81%.

We expect the company’s current round of media resource expansion to have basically ended and maintain the company’s BUY rating.

The key income indicators of support levels have increased significantly, expanding cost pressure.

The company’s operating income in 2018 was 145.

51 ppm, an increase of 21 in ten years.

12%, the first quarter of 2019 achieved revenue of 26.

11 ‰, a 深圳桑拿网 ten-year average of 11.

78%; since the second quarter of 2018, the company has significantly expanded elevator media resources, and the number of elevator media resources has increased from 160 at the end of the first quarter of 2018.

0,000 increase to 275 at the end of the first quarter of 2019.

As a result, operating costs such as media resource rents, equipment depreciation, labor costs, and operation and maintenance costs have increased on average. From the perspective of quarterly operating cost changes, the company’s upcoming expansion in early 2019 has been basically completed.

The gross profit margin of the main business declined significantly in the first quarter of 2019 due to industry influence.

In 2018, the company’s building media business revenue increased by 28 each year.

69%, gross margin reached 70.南宁桑拿

09%, due to the stable operation of the building business, the overall gross profit margin remained basically stable in 2018; and in the first quarter of 2019, due to industry factors and the impact of macroeconomics, the company’s revenue decreased but costs did not fall, thereby reducing the overall gross profit marginhighest.

The development prospects of the industry are unhindered. The company has expanded significantly, and joined hands with Ali to create “global” marketing.

While guaranteeing the advantages of media resources in first-tier cities, the company sinks to second- and third-tier cities and upgrades media equipment to ensure real-time monitoring of delivery results. At the same time, the company accelerated the integration of online and offline marketing resources, and the company and Alibaba shortened the reporting periodThe strategic cooperation agreement, the two parties will work together to create a new online advertising system to ensure the smooth flow of all advertising in global marketing and increase the value of global advertising.

It is estimated that based on the changes in the company’s quarterly operating costs, we predict that the company’s current round of media resource expansion has basically ended in early 2019.

The company is expected to achieve a net profit of 45 in 2019-2021.

18, 53.

34 and 59.

7.5 billion yuan, with budget revenues of zero.

31, 0.

36 and 0.

41 yuan, corresponding to the current expected price-earnings ratio of 21 times, 18 times and 16 times.

We believe that the current status of the company has basically been reflected, and we are optimistic that the company will introduce new measures for performance growth and maintain the company’s buy rating.

The main risks faced by the rating The growth of the advertising industry continued and the company’s operating costs were not properly controlled.