Goldman maintains focus media to buy rating target shares rose to 49 USD

Sina Science and technology news Beijing time August 23 afternoon, Goldman Sachs published a research report today, said that the media (NASDAQ:FMCN) in fiscal year 2011 in the second quarter of the performance far exceed market expectations.　　Goldman will continue to maintain the "buy" rating of the media and raise its target share price to $49 trillion. The following is a summary of the report: media outlets today released their earnings for the second quarter of 2011 as at June 30, and looked forward to the third quarter. The focus media's performance in the second quarter has been excellent, and expectations for the third season have gone further.　　In the second quarter of 2011, the company's projected earnings per share for non-US GAAP (Non-gaap epads) were 14% higher than Goldman Sachs ' expectations. Conference Call Points: (1) advertising market demand is still strong, the major brands of advertising investment is not affected by the depressed economic environment. But the rise in performance depends on the industry: revenue in FMCG is up 37%, and internet revenue is up 11%, with sales up 4% in the group buying sector. ) (2) The company's profits continue to grow healthily. Gross margin under non-US general accounting standards rose by 2.4% per cent year-on-year, to 64.1%. At the same time as the sales of advertising business profit growth of 18%, to 61.3%; poster framework operating profit growth of 5.5% to 29%; the LCD display operating profit rose 2% to 82.1%, eventually pushing the focus of the media core areas of profits continue to rise year-on-year.　　However, due to the impact of bad debts and sales commissions, the company's operating margin rose by only 0.7% to 38.4%.　　(3) LCD Interactive advertising screen upgrade has received outside attention, the company's management expects the platform to play a crucial role in the future, and will be able to further promote the advertising budget of the enterprise on the basis of existing network brands, while providing a wider choice of space and measurable results for advertising. Goldman Sachs believes that if the product can be successfully launched, then from 2012 onwards, the media in the next few years, the annual revenue growth rate will be more than 20%, and will be able to continue to grow.　　The media is planning to roll out the product (about 100,000 LCD screens) in 7 cities in China by October this year, and in 2012 the product will be extended to 20 cities, further increasing over the next few years. Stock price analysis as the media performance more than investors expected, and performance far better than other advertising companies (the second quarter of the major advertising companies to increase the growth of the chain: The media rose 46%, Sina Rose 26%, Sohu up 27%),　　So Goldman Sachs believes that the demand for advertisers will not change much in the short term. Goldman Sachs believes that investor confidence will be able to further promote the share price of the media. And with the potential for new interactionThe platform, combined with the expectations of existing street ads, is expected to grow by as much as 25% annually in the 2013 fiscal year.　　Goldman will continue to maintain the "buy" rating of the media, and will raise its target share price from $45 to $49. Goldman Sachs has also warned of potential risks including the cyclical impact of advertising products and cost inflation. (linjing)