Focus Media(SZ:002027) CHINA DRAGON SECURITIES·2024-08-13 03:20Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its stock performance relative to the market index [9]. Core Views - The company has implemented a mid-term cash dividend plan, distributing 1.00 yuan per 10 shares, totaling 1.444 billion yuan, reinforcing its commitment to shareholder returns while ensuring sustainable growth [4][5]. - The company has established the largest urban lifestyle media network in China, covering approximately 300 cities domestically and around 100 major cities internationally, including locations in Southeast Asia and India [4]. - The primary revenue source for the company is its elevator media business, which accounted for 92.26% of total revenue in the first half of 2024, with a reported revenue of 5.505 billion yuan [5]. Revenue and Profit Forecast - The company is projected to achieve revenues of 12.868 billion yuan, 13.794 billion yuan, and 14.622 billion yuan for the years 2024, 2025, and 2026, respectively [9]. - The forecasted net profit attributable to the parent company is expected to be 4.873 billion yuan, 5.233 billion yuan, and 5.879 billion yuan for the same years [9]. - The report anticipates a steady growth rate for the company's main business segments, with elevator media revenue growth rates projected at 8%, 7%, and 6% for 2024 to 2026 [9]. Financial Metrics - The company reported a revenue of 5.967 billion yuan for the first half of 2024, reflecting an 8.17% increase from the previous year [5]. - The projected earnings per share (EPS) for the years 2024, 2025, and 2026 are 0.34 yuan, 0.36 yuan, and 0.41 yuan, respectively [8]. - The price-to-earnings (P/E) ratios for the years 2024, 2025, and 2026 are estimated to be 17.1, 16.0, and 14.2, indicating a favorable valuation compared to peers [9].