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【华泰联合证券】赛迪传媒:转型之路漫漫而修远

[Huatai United Securities] Sadie Media: the road of transformation is long and long.

華泰聯合證券 ·  Mar 12, 2007 00:00  · Researches

The company's print media revenue has declined; under the influence of new media such as the Internet, print media audience and advertising revenue have been losing, coverage, penetration and influence have declined, and the company's media business income has declined for two consecutive years; the company's new profit growth point is still being explored; in terms of traditional media, the company has expanded from industry newspapers and periodicals to consumer and entertainment newspapers and periodicals, and Digital Times Weekly expects advertising revenue of 30 million yuan in 2007.

In the new media business, mobile advertising and railway media are the focus of the company, but it is still far from profitable.

The high-speed rail project has become the company's growth hope; the company plans to cooperate with the Ministry of Railways to operate print media advertising on high-speed trains. According to the planning of the Ministry of Railways, by 2010, the operating mileage of the railway network will reach about 85000 km, of which the passenger dedicated line (high-speed railway) is about 5000 km. According to the transport of 100m passengers and 25% reading rate, advertising revenue will reach about 100m yuan. At present, the cooperation agreement between the company and the Ministry of Railways is still under negotiation, and there is still some uncertainty. With the efforts of the company's management, the decline of Sadie Media's traditional media business may be curbed, but the possibility of rapid growth is unlikely, and the new media business still needs time to find a mature profit model. It is expected that profits in 2006 will be difficult to improve compared with 2005. At present, the total market capitalization of the company has exceeded 2.3 billion yuan, maintaining a "neutral" rating.

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