Focus Media(002027) 国海证券·2024-05-04 14:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has demonstrated strong revenue recovery in 2023, with a significant profit elasticity. The projected high dividends and robust performance make it an attractive investment opportunity [7][8] - The company is expected to maintain high dividends, with plans to distribute at least 80% of its non-recurring net profit as cash dividends from 2024 to 2026 [2][7] Financial Performance Summary - In 2023, the company reported revenue of 11.90 billion yuan, a year-over-year increase of 26.3%, and a net profit attributable to shareholders of 4.83 billion yuan, up 73.0% [2][3] - For Q1 2024, the company achieved revenue of 2.73 billion yuan, reflecting a year-over-year growth of 6.02%, and a net profit of 1.04 billion yuan, up 10.5% [2][3] - The company plans to distribute a dividend of 0.33 yuan per share for 2023, totaling 4.77 billion yuan, with a dividend payout ratio of 98.7% [2][3] Revenue and Profitability Trends - The company's revenue from building media in 2023 was 11.12 billion yuan, with a gross margin of 65.86%, showing a year-over-year increase of 7.16 percentage points [4] - The cinema media revenue for 2023 was 769 million yuan, representing a year-over-year growth of 43.1% [6] - The company has diversified its advertising client base, with consumer goods contributing 6.69 billion yuan in revenue, a year-over-year increase of 28.7% [7] Future Projections - The company is projected to achieve revenues of 13.07 billion yuan, 14.04 billion yuan, and 14.99 billion yuan for 2024, 2025, and 2026, respectively, with corresponding net profits of 5.35 billion yuan, 5.78 billion yuan, and 6.15 billion yuan [6][8] - The expected earnings per share (EPS) for the next three years are 0.37 yuan, 0.40 yuan, and 0.43 yuan [6][8] Market Performance - As of April 30, 2024, the company's stock price was 6.50 yuan, with a market capitalization of approximately 93.87 billion yuan [3][8] - The company's performance relative to the CSI 300 index over the past 1 month, 3 months, and 12 months was -0.3%, +14.2%, and +5.3%, respectively [3]