Qiaofeng maintained the Pacific Network (00543-HK) “buy” rating, with the target price of 4.48 yuan unchanged.

According to a report released by Qiaofeng Research, last year was a transition period for the Pacific Network, and the company faced high cost problems due to expansion, relocation of sales offices, and development of new mobile content. Looking ahead, Qiaofeng expects that the company's cost increases will be manageable and profit margins will recover somewhat. Qiaofeng pointed out that the stock's price-earnings ratio is currently predicted to be 8.3 times this year, while its interbank transactions are all over 20 times. The stock's returns last year and this year were attractive, 6.7% and 8%, respectively.

Qiaofeng quoted Taiwang management as saying that the company's overall advertising expenditure in China has recently improved. The company has noticed that departmental media advertising prices have increased 15% year over year during the Lunar New Year holidays. It is currently in the initial stage of advertising price negotiations, which are progressing well. Management believes that this year's advertising prices can be adjusted to a 5%-10% year-on-year increase, which is in line with Qiaofeng's expectations. Qiaofeng also pointed out that although there is potential for growth in the advertising space of Taiwang's other two core portals, the bank believes that the growth in the Pacific computer advertising space is limited.