TheStreet Fitch to sell ratings to Chinese media

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Beijing time October 17 Evening News, the U.S. rating agency TheStreet Fitch issued an investment report today to give the Chinese media shares (NASDAQ:VISN) "sell" rating.

The following is a summary of the contents of the report:

The downturn in the media is reflected in a number of areas, such as lower margins and higher risk of debt management.

1 gross margin is very low, currently 20.68%. Still, the year-on-year increase was significant. The net profit margin was 21.89%, well below the industry average.

2 The ratio of debt to equity (debt-to-equity ratio) is 1.55, below the industry average, which means that the ratio is acceptable in the media market. Quick ratio is 0.69, which means asset liquidity is poor.

3 returns on equity (return on Equity) slightly improved year-on-year, this is the embodiment of the company's strength. But compared with other companies in the media industry and the market as a whole, the rate of return on equity in China's media is less than the industry average and the standard and Poor's 500 index.

4 In recent quarters, the Chinese media has seen a significant increase in earnings per share. In fiscal year 2012, China saw the media diluted earnings per share of 48.65 U.S. dollars, while the 2011 fiscal year was 2.40 dollars.

5 China saw media revenues fell 5% Year-on-year, but this did not affect the diluted earnings per share, the latter has increased.