Focus media, whose market value rose nearly 80 billion in half a year, has turned over?

category:Finance
 Focus media, whose market value rose nearly 80 billion in half a year, has turned over?


According to the third quarterly report released by Focus Media on the evening of October 22, the company realized a revenue of 7.875 billion yuan, a year-on-year decrease of 11.57%; at the same time, it realized a net profit of 2.202 billion yuan belonging to shareholders of listed companies, with a year-on-year increase of 61.90%.

Among them, focus media achieved a revenue of 3.265 billion yuan, a year-on-year increase of 2.37%; and a net profit of 1.379 billion yuan attributable to shareholders of listed companies, with a year-on-year increase of 136.77%.

Focus Medias performance growth in the third quarter is related to two main reasons.

First of all, with the rise of new consumer industries, advertising budget in these areas has become the performance growth point of focus media.

In fact, affected by the new crown epidemic, the operating income of focus media in the first three quarters is still declining, and the overall decline of more than 10% is not small.

Focus media includes building media and cinema media. In the past few years, their revenue accounted for about 82%. However, in the first half of this year, cinemas across the country were closed down, and the media revenue of cinemas was greatly reduced.

Fortunately, the rise of the new consumer industry has made the building advertising of score media recover with the gradual alleviation of the epidemic situation.

Since the beginning of this year, Yuanqi forest and zihaiguo have become popular and put a lot of advertisements on buildings. At the same time, online education brands have increased significantly this year.

Focus media said that although the whole advertising industry declined year on year, the advertising budget was fully concentrated to the head. At the same time, the high growth of the new consumption track itself has brought about a rapid rebound in performance after the epidemic.

The revenue of building advertising in the second quarter was 2.617 billion yuan, which was basically flat on a year-on-year basis; in the third quarter, the revenue was 3.237 billion yuan, with a year-on-year growth of about 20%.

Secondly, although the revenue has declined, the net profit of focus media has increased greatly. The core reason lies in the decrease of cost. Including the decline of single screen rental costs, there are also some tax reductions.

Focus media said that due to the epidemic situation, the rental cost of media resources that can not normally publish advertisements has been reduced. At the same time, the market competition has been greatly weakened, and the rental cost of single screen has decreased.

In the first three quarters, the media rental cost of focus media decreased by 1.394 billion yuan. Among them, cinemas closed down, and theater rental costs decreased by 890 million yuan. Some communities and the affected office buildings also reduced the rental cost of building media, a total reduction of 472 million yuan.

In terms of taxes and fees, this years exemption from cultural construction fees also saves a sum of money. In the first half of 2019, the cultural construction fee in business tax and surcharges will be charged at 3% of the sales amount charged according to the value-added tax of business income, and from the second half of 2019, it will be charged by 1.5%. As a result, the business tax and surcharges of focus media have decreased compared with the same period last year.

Northbound funds in the last two quarters in a row, focus media. Following the increase of 21.6897 million shares in the second quarter of 2020, another 230 million shares were added in the third quarter. The shareholding ratio of Hong Kong Central Clearing Co., Ltd. (Lu stock connect) rose to 9.97%, a new record.

In the secondary market, focus media also climbed out to the dark moment. The companys share price fell to the lowest of 3.81 yuan / share in April, which is also the lowest market value of focus media since its return to the A-share market. Subsequently, the companys stock price bottomed out and rebounded all the way to above 9 yuan, with the latest stock price of 9.16 yuan and the latest market value of 134.4 billion yuan. The market value rose by 78.6 billion yuan in half a year.

However, there are still two points to be noted behind the brilliant three quarterly reports.

First, although the performance of the third quarter doubled, and the growth rate of the first three quarters was more than 60%, focus media still did not return to the performance level of about 6 billion yuan in 2017 and 2018, and there was still a lot of shrinkage. The higher growth rate, to some extent, is related to the decrease of 67.80% in net profit in 2019 and the low base of last year.

On the other hand, on the basis of the obvious decline in rental costs this year, focus medias gross profit margin in the first three quarters was 58.98%, which was higher than that in 2019, but there was still a big gap between the gross profit rate of focus media in the first three quarters, which exceeded 70% in 2015-2017.

Source: interface news editor: Yang Qian_ NF4425