Focus Media(SZ:002027) Zhongyuan Securities·2024-05-09 02:30Investment Rating - The report maintains a "Buy" investment rating for the company, indicating an expected relative increase of over 15% compared to the CSI 300 index within the next six months [21]. Core Views - The company has shown significant performance recovery, with a 2023 revenue of 11.904 billion yuan, a year-on-year increase of 26.30%, and a net profit of 4.827 billion yuan, up 73.02% year-on-year [5][6]. - The advertising industry is experiencing an upward trend, with the outdoor advertising market in China growing by 11.01% in 2023 [6]. - The company plans to distribute a high dividend of 47.66 billion yuan, which is 98.74% of its net profit for the year [8]. Summary by Sections Market Data - Closing price: 6.63 yuan - One-year high/low: 7.76/5.58 yuan - Market capitalization: 95.752 billion yuan - Price-to-book ratio: 5.11 [1]. Financial Performance - 2023 revenue: 11.904 billion yuan, up 26.30% year-on-year - 2023 net profit: 4.827 billion yuan, up 73.02% year-on-year - Q1 2024 revenue: 2.729 billion yuan, up 6.02% year-on-year - Q1 2024 net profit: 1.04 billion yuan, up 10.50% year-on-year [5][6]. Profitability Metrics - Gross margin for 2023: 65.48%, up 5.77 percentage points year-on-year - Q1 2024 gross margin: 61.69%, relatively stable year-on-year [6][8]. Client Structure - Daily consumer goods clients account for 56.23% of revenue, a historical high - Significant growth in revenue from internet clients (26.38%) and entertainment clients (29.99%) [6]. Media Coverage - The company has expanded its media points to cover over 280 cities in China and 95 overseas cities - The number of self-operated elevator TV media devices reached 1.051 million [7]. Future Outlook - EPS projections for 2024-2026 are 0.36 yuan, 0.40 yuan, and 0.44 yuan respectively - Corresponding PE ratios are 18.22, 16.39, and 15.04 based on the closing price [9].