Stock research on global mid-cap companies

Evaluate Research

Evaluate Research provides institutional quality stock research on small-cap and  mid-cap companies on a global basis, thus helping connect investors with the company.

At Evaluate Research, we provide free of cost to all investors a 20-25 page Initiation Report which evaluates in great detail all aspects of the company:  growth opportunities, catalysts, business description, competitive positioning, SWOT analysis, risks, etc.  In addition, we determine specific price targets for the company based on detailed 5-year complete forecasts of financial statements including IS, BS, CF, ratios, etc.  Finally, whereas many sell-side brokers offer sketchy and irregular ongoing maintenance research of companies, if not outright dropped or termination of coverage, at Evaluate Research we systematically monitor and regularly publish Update Notes covering quarterly earnings, major corporate events, etc.

All of the research reports are broadly and freely disseminated globally to leading Fund Managers and analysts who invest specifically in mid-size equities, and also on leading investment information platforms including: Bloomberg, Thomson Reuters, FactSet etc.

Stock research on global mid-cap companies, Evaluate Research

Equity Bottom-Up

<p>Clear Media once again reported a strong set of results for 2H 2016 amid a weak economic environment. Revenue increased by 11.9% YoY to Rmb 884.6 million in 2H 2016, 5.9% higher than our estimates, driven mainly by the increase in number of panels in operation supported by the strong festive season sales in November and December. We spoke with management earlier today which noted that the revenue outperformance was also driven by an improving occupancy and yield.</p>
<p>During the period, the company reported gross margin of 46.9% as against 46.7% during the same period last year. Operating income was up 8.6% YoY to Rmb240.7 million, 2.7% higher than our estimates, while the operating margin declined 80 bps to 27.2% compared with 28.0% in 2H2015 driven by higher SG&amp;A expenses during the period. SG&amp;A expenses came in at 19.3% of sales compared with 18.5% in 2H2015. Net profit margin contracted 100 bps YoY to 17.5% while the Net income increased 6.1% YoY to Rmb155.1 million, 3.5% ahead of our estimates of Rmb149.8 million. We would note that operating margins had reached historically high levels in 2015 and as such, a reversion to normalized levels was not unanticipated. For FY2017, we are modeling for 5.8% revenue growth to Rmb1.7 billion, 7.8% growth in operating income, 24.1% operating margins vs. 23.7% in 2016 and a 6.5% growth in the net income to Rmb258.7 million.</p>

Clear Media once again reported a strong set of results for 2H 2016 amid a weak economic environment. Revenue increased by 11.9% YoY to Rmb 884.6 million in 2H 2016, 5.9% higher than our estimates, driven mainly by the increase in number of panels in operation supported by the strong festive season sales in November and December. We spoke with management earlier today which noted that the revenue outperformance was also driven by an improving occupancy and yield.
During the period, the company reported gross margin of 46.9% as against 46.7% during the same period last year. Operating income was up 8.6% YoY to Rmb240.7 million, 2.7% higher than our estimates, while the operating margin declined 80 bps to 27.2% compared with 28.0% in 2H2015 driven by higher SG&amp;A expenses during the period. SG&amp;A expenses came in at 19.3% of sales compared with 18.5% in 2H2015. Net profit margin contracted 100 bps YoY to 17.5% while the Net income increased 6.1% YoY to Rmb155.1 million, 3.5% ahead of our estimates of Rmb149.8 million. We would note that operating margins had reached historically high levels in 2015 and as such, a reversion to normalized levels was not unanticipated. For FY2017, we are modeling for 5.8% revenue growth to Rmb1.7 billion, 7.8% growth in operating income, 24.1% operating margins vs. 23.7% in 2016 and a 6.5% growth in the net income to Rmb258.7 million.

Clear Media Ltd

Clear Media: 2HFY2016 Earnings Update