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.

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Stock research on global mid-cap companies, Evaluate Research

Equity Bottom-Up

Clear Media reported mixed results for the first half ended June 2017.&nbsp;Revenues increased by 1.8% YoY to RMB762.5 mn while EBITDA&nbsp;increased by 2.7% YoY to 308.4 mn. However, EPS declined by 15.5%&nbsp;YoY to RMB14.19 cents. The decline in EPS resulted from an 8.7%&nbsp;increase in the amortization of concession rights to RMB163.9 mn&nbsp;and a RMB5.1 mn foreign exchange loss. Adjusted for the foreign&nbsp;exchange loss, EPS would have been down by about 10%. The muted&nbsp;revenue growth was mainly on account of weak sales in the first&nbsp;quarter of the year due to early Chinese New Year and challenges&nbsp;posed by ad campaigns postponement by customers in that period.&nbsp;Sales growth resumed in the second quarter of the year which&nbsp;saw higher single digit growth rate. In our one-on-one call with&nbsp;management, they noted that they are seeing growth&nbsp;momentum continuing in the third quarter. The company gained&nbsp;new e-commerce and IT customers during the period, which&nbsp;drove the demand for additional panels.
Maintain HK$ 9.70 PT Clear Media is the leading bus shelter advertisement operator in China having a market share of more than 70% in the top-tier cities along with a broad presence in some of the fastest growing cities across the country. The company has grown over the past decade and we expect the company to continue its growth momentum going forward driven mainly by our optimistic view of the long-run domestic consumer spending in China. Our 12-month price target on the stock is HK$9.70 per share. The stock is currently trading at HK$9.15 per share and is fairly valued at the current level, in our view. Our price target is based on DCF and P/E methodologies. Our DCF based price is HK$9.97 per share which assumes 9.6% WACC and 3% terminal growth rate. We apply a 17.3x multiple on our FY2018 EPS estimate of HK56 cents which gives a stock price of HK$9.70 per share. Given the company’s strong balance sheet with nearly HK$692 mn in net cash [nearly 14% of current market cap], our target price equates to an ex-cash P/E of 14.1x.
Analyst: Ajeya Patil

Clear Media reported mixed results for the first half ended June 2017.&nbsp;Revenues increased by 1.8% YoY to RMB762.5 mn while EBITDA&nbsp;increased by 2.7% YoY to 308.4 mn. However, EPS declined by 15.5%&nbsp;YoY to RMB14.19 cents. The decline in EPS resulted from an 8.7%&nbsp;increase in the amortization of concession rights to RMB163.9 mn&nbsp;and a RMB5.1 mn foreign exchange loss. Adjusted for the foreign&nbsp;exchange loss, EPS would have been down by about 10%. The muted&nbsp;revenue growth was mainly on account of weak sales in the first&nbsp;quarter of the year due to early Chinese New Year and challenges&nbsp;posed by ad campaigns postponement by customers in that period.&nbsp;Sales growth resumed in the second quarter of the year which&nbsp;saw higher single digit growth rate. In our one-on-one call with&nbsp;management, they noted that they are seeing growth&nbsp;momentum continuing in the third quarter. The company gained&nbsp;new e-commerce and IT customers during the period, which&nbsp;drove the demand for additional panels.
Maintain HK$ 9.70 PT Clear Media is the leading bus shelter advertisement operator in China having a market share of more than 70% in the top-tier cities along with a broad presence in some of the fastest growing cities across the country. The company has grown over the past decade and we expect the company to continue its growth momentum going forward driven mainly by our optimistic view of the long-run domestic consumer spending in China. Our 12-month price target on the stock is HK$9.70 per share. The stock is currently trading at HK$9.15 per share and is fairly valued at the current level, in our view. Our price target is based on DCF and P/E methodologies. Our DCF based price is HK$9.97 per share which assumes 9.6% WACC and 3% terminal growth rate. We apply a 17.3x multiple on our FY2018 EPS estimate of HK56 cents which gives a stock price of HK$9.70 per share. Given the company’s strong balance sheet with nearly HK$692 mn in net cash [nearly 14% of current market cap], our target price equates to an ex-cash P/E of 14.1x.
Analyst: Ajeya Patil

Mixed H1FY2017 Results; Revenue Up 1.8%; EPS Down 10%

Clear Media Ltd

Mixed H1FY2017 Results; Revenue Up 1.8%; EPS Down 10%