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Focus Media (002027): Optimize points and improve efficiency, explore traditional advertisers to respond to sluggish demand


Focus Media (002027): Optimize points and improve efficiency, explore traditional advertisers to respond to sluggish demand

On May 14th, we invited Focus Media to participate in the CICC A-shares forum in Hong Kong. The company and investors exchanged views on 2018’s operating conditions and future business prospects.

The core points are as follows: Comment expansion, expansion and optimization of key points to improve single-screen efficiency.

The company said that the small increase in the number of points in 1Q19 was mainly due to the normal installation of contracted points; the resource target for 2019 is to optimize the points and improve the efficiency of the expanded screen single point.

Facing the problem of increased publication rates after the 深圳桑拿网 expansion of the third and fourth lines, the company plans to cooperate with local advertising companies to broaden customer resources and improve operational efficiency.

The revenue outlook is not yet clear, and the strategy is to optimize the structure of advertisers.

The company said that at present, advertisers’ demand for advertising on the Focus platform is not active, instead of seeing a substantial recovery in demand.

However, the company also said that the dynamic adjustment of advertiser budgets is relatively fast. The low investment amount in 1Q19 does not represent the trend in 2019. Advertisers will adjust the advertising budget and delivery rhythm in a timely manner according to the macro environment and business conditions.

On the whole, the uncertainties at the income side are converging.

At present, the advertising budget of Internet advertisers, especially PEVC advertisers, has decreased slightly, mainly due to the significant decrease in the amount of financing in the primary market. In this regard, the company stated that its strategic focus is to continue to optimize the structure of advertisers.”Focus 100 Team” to better develop traditional category advertisers.

Alibaba’s strategic cooperation has enhanced the company’s digital capabilities.

Investors are concerned about the progress of Ali’s strategic cooperation. The company stated that there has been a small-scale test of data return, which has opened up the data and triggered the meaning; instead, some of the media in Focus Media have been connected to Ali’s global marketingPlatform. In the future, Ali advertisers can choose to participate in the offline distribution of the audience through Ali mothers.

We believe that the cooperation with Ali has become a traditional digital media for the company, which has improved potential operational efficiency.

It is estimated that the EPS forecast for 2019/20 is maintained at 0.

29 yuan / 0.

38 yuan.

The company’s current consensus corresponds to 19/19/2019.

4/14.

8 times P / E, maintaining recommended level and target price of 8.

20 yuan, corresponding to 21 in 2019.

5x P / E, potential 43.

86% upside.

Risks The macroeconomic downturn has dragged down advertising expectations, accelerated expansion led to higher-than-expected 青岛夜网 cost growth, and increased competition in the elevator media industry.