花旗-北青传媒深度研究报告061206 pdfompany In-Depth

Beijing Media Corporation (1000.HK)

Initiating With a Buy and HK$11.00 Target: Time for a Fresh Look

Initiating with a Buy/Medium Risk (1M) rating and HK$11.00 target price —Beijing Media Corp (BMC) is the publisher of the Beijing Youth Daily, thecapital's flagship newspaper. Despite challenges in the near term, we believe investors will be rewarded and 21x earnings (ex-cash).

共32页

Contents
Investment Summary 4
Beijing's Flagship Newspaper 4
Cash position suggests core assets are undervalued 4
Our estimates 7
Valuation appears compelling 7
Buy/Medium Risk (1M) rating with 29% expected total return 9
Investment positives 10
Rich pedigree and strong market position 10
Ownership provides strong backing from the Chinese government 11
BMC has valuable call options on other BYD properties 12
BMC is taking steps to respond to the changing print media market 12
Exploring a move onto the Internet 15
Outdoor media 16
Magazines 17
Ability to leverage the "Little Red Caps" distribution network 17
Investment negatives 19
No easy fixes to the issues impacting revenue growth 19
Slowdown in property ad spend in newspapers 19
More than just a temporary slowdown in property ad spend 20
Chinese government regulations could limit growth 22
Overhang from bribery case 23
Most recent results: 1H06 24