Focus Media(SZ:002027)2024-04-30 14:32Investment Rating - The investment rating for the company is "Recommended" (maintained) [2] Core Insights - The company has shown significant recovery in performance, with a notable deployment of marketing vertical large models [2][3] - In 2023, the company achieved operating revenue of 11.904 billion yuan, a year-on-year increase of 26.30%, and a net profit attributable to shareholders of 4.827 billion yuan, up 73.02% year-on-year [3] - The company is actively embracing AI technology to enhance its digital and intelligent marketing capabilities, having completed the deployment of its marketing vertical large model [3] Financial Performance Summary - For 2023, the company reported operating revenue of 11.904 billion yuan, with a net profit of 4.827 billion yuan, and a proposed cash dividend of 0.33 yuan per share [3] - In Q1 2024, the company achieved operating revenue of 2.730 billion yuan, a year-on-year increase of 6.02%, and a net profit of 1.040 billion yuan, up 10.50% year-on-year [3] - The gross profit margin for 2023 was 65.5%, an increase of 5.77 percentage points year-on-year, while the management expense ratio decreased by 2.74 percentage points to 3.72% [3] Future Projections - The company is expected to achieve net profits of 5.245 billion yuan, 6.094 billion yuan, and 6.901 billion yuan for 2024, 2025, and 2026 respectively, with year-on-year growth rates of 8.67%, 16.19%, and 13.23% [3] - Corresponding PE ratios for the years 2024, 2025, and 2026 are projected to be 19x, 17x, and 15x respectively [3]