\u3000\u3 China Vanke Co.Ltd(000002) 027 Focus Media Information Technology Co.Ltd(002027) )
Event: Focus Media Information Technology Co.Ltd(002027) ( Focus Media Information Technology Co.Ltd(002027) . SZ) released the annual performance report of 2021 and the performance report of the first quarter of 2022 on April 29, 2022.
The company’s performance grew steadily in the past 21 years, realizing a revenue of 14.836 billion yuan, a year-on-year increase of 22.64%, and a net profit attributable to the parent company of 6.063 billion yuan, a year-on-year increase of 51.43%; 21q4 achieved a revenue of 3.688 billion yuan, a year-on-year decrease of 12.63%, and a net profit attributable to the parent company of 1.641 billion yuan, a year-on-year decrease of 8.93%.
22q1 affected by the epidemic situation all over the country, the normal release of advertisements in some cities is limited, and the business performance is negatively affected. In 22q1, the company achieved a revenue of 2.939 billion yuan, a year-on-year decrease of 18.19%, and the net profit attributable to the parent company was 929 million yuan, a year-on-year decrease of 32.12%.
The company plans to distribute cash dividends of 0.13 yuan per share (before tax), with a total cash dividend (including tax) of 1.877 billion yuan. Combined with the interim dividend of 0.208 yuan per share in 21 years, the total cash dividend (including tax) is 3.004 billion yuan, with an annual dividend ratio of 80.5% and a dividend rate of 4.13%.
Comments:
Advertising is highly related to the macroeconomic boom. 22h1 is under pressure in the short term and will recover after the epidemic. In 2021, the macro economy recovered, and the overall advertising industry showed a year-on-year recovery. Quarter by quarter, due to the base number and macro fluctuations in the second half of the year, the recovery was high before and low after, the growth of 21q4 industry was weak, and the impact of 22h1 epidemic was under pressure in the short term. Monthly: there was high base pressure from January to February, but it was in line with expectations as a whole. The performance was under pressure due to the sudden outbreak of the epidemic in March, and the epidemic in Shanghai was more serious in April. The performance needs to wait for the recovery and improvement of the subsequent epidemic. Overall: since March, it has been mainly in first tier cities such as Shenzhen and Shanghai. As the core area of the company’s business, first tier cities have the characteristics of high publication rate and high unit price. The sealing and control has led to the inability to publish, and the short-term performance is under pressure; The online advertising base is also relatively high.
The customer structure continues to be optimized and the consumer category continues to be overweight. The advertising host of daily consumer goods industry continued to recognize the value of ladder media. In 2021, the income of building media daily consumer goods advertisers was 5.805 billion yuan, a year-on-year increase of 35.36%, and the proportion of income increased by 3.67ppt to 39.12%; Cinema media revenue accounted for 3.55%, with a year-on-year increase of 1.82pct.
Pay more attention to cost efficiency, and the gross profit margin and net profit margin continue to rise. The company’s overall gross profit margin in 21 years was 67.53%, up 4.29pct year-on-year, of which the gross profit margin of building media was 71%, up 6.87pct year-on-year. The cost of media resources related to the company’s building media business decreased slightly compared with the same period. The cost of media resources of the company in the past 21 years increased by 13.16% compared with that in the past 20 years, mainly due to the recovery after the epidemic in the past 21 years, and the pre screening time and procurement cost of the cinema business increased by 221.53%, resulting in the continuous loss of the cinema business. In addition, benefiting from good cost control, the cost of media resources related to the company’s building media business decreased slightly compared with the same period. The company’s overall gross profit margin of 22q1 was 63.37%, a year-on-year decrease of 2.35pct, and the overall net profit margin was 31.99%, a year-on-year decrease of 6.25pct. The company will strive for rent reduction and recovery of the epidemic, and its profitability will gradually recover
Overseas listed foreign shares are issued, and the subsidiary plans to be listed separately, so the financing capacity is further improved. In November 21, the company passed the proposal related to the issuance of H shares, planned to issue overseas listed foreign shares (H shares) and applied for listing on the main board of the stock exchange of Hong Kong Limited, so as to further promote the company’s internationalization strategy. In April 22, the company announced that it planned to spin off its holding subsidiary fmkorea to be listed on the Korean exchange, providing fmkorea with an independent Korean fund-raising platform and broadening financing channels abroad.
Investment suggestion: To sum up, the company’s performance in 21 years and 22q1 is in line with expectations, which is under pressure in the short term due to the impact of the epidemic and is expected to continue. The prosperity of the media in the life circle, especially the popularity of consumer goods advertisers, is highly related to the economy. Pay attention to the recovery after the epidemic and the bottom opportunity of 22q2 performance.
Risk factors: the impact of the epidemic exceeds expectations, the industry competition intensifies, and the demand of the advertising market is uncertain.
