Focus Media(SZ:002027) Changjiang Securities·2024-08-11 15:09Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its investment value in the building media sector [2][6][7]. Core Insights - The company reported a revenue of 5.967 billion yuan for H1 2024, representing a year-on-year growth of 8.17%, and a net profit attributable to shareholders of 2.493 billion yuan, up 11.74% year-on-year [2][6]. - For Q2 2024, the company achieved a revenue of 3.238 billion yuan, with a year-on-year increase of 10.05%, and a net profit of 1.453 billion yuan, reflecting a growth of 12.65% [2][6]. - The company announced a cash dividend plan, proposing to distribute 1.00 yuan per 10 shares to all shareholders, amounting to approximately 1.444 billion yuan, which is 57.92% of the net profit attributable to shareholders [6][7]. Summary by Sections Financial Performance - In H1 2024, the building media segment generated 5.505 billion yuan in revenue, a growth of 7.25% year-on-year, while cinema media revenue reached 454 million yuan, increasing by 20.75% [7]. - The gross margin improved, with the building media segment's gross margin rising by 0.34 percentage points to 64.31% due to lower cost growth compared to revenue growth [7]. - Investment income for H1 2024 was 344 million yuan, marking a significant increase of 54.6% year-on-year, contributing to overall performance [7]. Market Strategy - The company is focusing on core locations in first and second-tier cities and has partnered with Meituan to enhance coverage in lower-tier markets, with a notable increase in self-operated LCD points in these areas [7]. - The proportion of consumer goods advertisers has risen from 53% at the end of 2023 to 59% in H1 2024, indicating a shift towards consumer-oriented advertising [7]. Earnings Forecast - The company is expected to achieve net profits of 5.3 billion yuan and 5.9 billion yuan for 2024 and 2025, respectively, with corresponding valuations of 16x and 14x [7].