Focus Media(SZ:002027) Guohai Securities·2024-08-13 05:05Investment Rating - The report maintains a "Buy" rating for the company [1][8] Core Insights - The company's H1 2024 performance exceeded market expectations, with revenue of 5.97 billion yuan (up 8.2% YoY) and net profit attributable to shareholders of 2.49 billion yuan (up 11.7% YoY) [3][4] - A mid-term dividend of 1.44 billion yuan is expected, with a dividend payout ratio of 57.9%, reflecting confidence in future performance [3][4] Financial Performance Summary - H1 2024 revenue breakdown: - Elevator media revenue: 5.51 billion yuan (up 7.25% YoY) with a gross margin of 64.3% - Cinema media revenue: 454 million yuan (up 20.75% YoY) with a gross margin of 76.43% [4][7] - Non-recurring gains of 296 million yuan were primarily from government subsidies [4] - The company’s gross margin improved to 65.1%, an increase of 1.19 percentage points YoY [4] Future Projections - Revenue and profit forecasts for 2024-2026: - 2024E revenue: 13.072 billion yuan, net profit: 5.348 billion yuan - 2025E revenue: 14.040 billion yuan, net profit: 5.802 billion yuan - 2026E revenue: 14.985 billion yuan, net profit: 6.180 billion yuan [6][8] - Expected EPS for 2024-2026: 0.37, 0.40, and 0.43 yuan respectively [6][8] Market Position and Competitive Landscape - The company is positioned as a leader in offline brand advertising, with a stable expansion of elevator media points and an increase in self-operated media units [4][5] - The competitive landscape is expected to improve following the cessation of operations by a leading competitor in the elevator media sector [4][7]