China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

MD, Blue Lotus Research Institute

Gu Jun, CFA

Equity Bottom-Up

Focus Media Information Technology Co, Ltd. / Equity Bottom-Up

Focus Media Information Technology Co, Ltd. (002027 CH)

Focus Media Information Technology Co, Ltd.

Promising 2018, raise TP to RMB 14.3● China’s non-internet ads spending shows strong recoveries in 2H17, which in our view is the response to increasing expensive online user acquisition cost.● In 2018, Focus Media plans further to expand media coverages in low-tier cities, which is the next growth opportunity, raising TP to RMB 14.3● We estimate that 4Q17’s total revenue and net profit would reach RMB 3.2 bn/1.65 bn, respectively, in line with company’s guidance.Offline ads spending saw strong…

Promising 2018, raise TP to RMB 14.3● China’s non-internet ads spending shows strong recoveries in 2H17, which in our view is the response to increasing expensive online user acquisition cost.● In 2018, Focus Media plans further to expand media coverages in low-tier cities, which is the next growth opportunity, raising TP to RMB 14.3● We estimate that 4Q17’s total revenue and net profit would reach RMB 3.2 bn/1.65 bn, respectively, in line with company’s guidance.Offline ads spending saw strong…

Focus Media (SZSE:002027) Promising 2018, Raise TP to RMB 14.3