Morgan Stanley said in a report that it will maintain its neutral rating of 02008-HK, and that its outdoor media business will become its new driver of profit growth, and its sales are likely to expand, with a three-year compound annual growth rate of more than 80 per cent to 317 million yuan (about 14 per cent of total sales) by 2012, while sales of traditional TV advertising business are growing at an annual rate of 8 per cent. Morgan Stanley also said that if Phoenix Satellite TV's profit margin is stable and profit growth accelerates again, it will buy the stock.

Phoenix Satellite TV closed down 2.78% to HK $1.4.