Focus Media(SZ:002027) Guohai Securities·2024-08-13 05:11Investment 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][5] - 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] Market Position and Growth Potential - The company is positioned as a leader in offline brand advertising, with expectations for sustained high dividends and resilient performance [6][7] - The market for elevator LCD and poster advertising saw significant growth, with expenditures increasing by 22.9% and 16.8% YoY, respectively [4][7] - The company’s self-operated elevator media increased to approximately 1.097 million units, reflecting a steady expansion [4][5] Future Projections - Revenue forecasts for 2024-2026 are 13.072 billion yuan, 14.040 billion yuan, and 14.985 billion yuan, respectively, with net profits projected at 5.348 billion yuan, 5.802 billion yuan, and 6.180 billion yuan [6][8] - Expected EPS for 2024-2026 are 0.37 yuan, 0.40 yuan, and 0.43 yuan, with corresponding P/E ratios of 15.85, 14.61, and 13.72 [6][8]