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 is the largest bus shelter advertisement operator in China with a market share ranging from 60% to 90% in top-tier cities. The company has grown over the past decade and expects to maintain healthy growth momentum going forward driven by numerous catalysts which are likely to unfold in the near to intermediate term. Despite the slowdown in the overall Chinese economy, the company has grown top-line at a CAGR of 9.5% and EPS at a CAGR of 49.7% during the past five years. The company has also paid large special dividends twice in the past three years.</p>
<p>Our 12-month price target on the stock is HK$9.70 which represents about 25% total return from current levels. Our price target is based on DCF and P/E methodologies. Our DCF based price is HK$9.7 which assumes 10.4% WACC and 3% terminal growth rate. We apply an 18.6x on our FY2016 EPS estimate of HK$0.52 which comes to HK$9.70 per share. Given the company’s strong BS with nearly HK$2.00 per share [25% of the current stock price] in net cash, our target price equates to an ex-cash P/E of 15.6x. See DCF details further in this report.</p>

Clear Media is the largest bus shelter advertisement operator in China with a market share ranging from 60% to 90% in top-tier cities. The company has grown over the past decade and expects to maintain healthy growth momentum going forward driven by numerous catalysts which are likely to unfold in the near to intermediate term. Despite the slowdown in the overall Chinese economy, the company has grown top-line at a CAGR of 9.5% and EPS at a CAGR of 49.7% during the past five years. The company has also paid large special dividends twice in the past three years.
Our 12-month price target on the stock is HK$9.70 which represents about 25% total return from current levels. Our price target is based on DCF and P/E methodologies. Our DCF based price is HK$9.7 which assumes 10.4% WACC and 3% terminal growth rate. We apply an 18.6x on our FY2016 EPS estimate of HK$0.52 which comes to HK$9.70 per share. Given the company’s strong BS with nearly HK$2.00 per share [25% of the current stock price] in net cash, our target price equates to an ex-cash P/E of 15.6x. See DCF details further in this report.

Clear Media Ltd

Clear Media: Initiation Report