CICC: Optimistic about Growth Potential of Mega-info Media’s Outdoor Large Screen Business and Maintains Outperform Industry Rating

On August 23, Mega-info Media (301102) released its 2024 semi-annual report, reporting revenue of CNY320 million in the first half of the year, up 25.8% year-on-year, and a net profit attributable to shareholders of the listed company of CNY40.92 million. On August 24, China International Capital Corporation (CICC) issued a research report, expressing optimism about the growth potential of Mega-info Media’s outdoor large screen business and maintaining its “Outperform” industry rating.

CICC’s analysis highlights that Mega-info Media continues to expand its high-speed rail media resources, now covering all domestic China Railway local group companies. The company added 49 new media locations, including Chengdu West Railway Station and arrival gates of Beijing South Railway Station, while optimizing resources at 34 other locations. The proportion of high-speed rail station media locations increased by 1 percentage point to 97%, further strengthening its competitive advantage.

CICC further noted, “With the continued enrichment of outdoor large screen media locations and improved ad publishing rates, Mega-info Media’s outdoor large screen business is expected to positively contribute to gross profits. Moreover, the company has integrated AI systems into the production of outdoor naked-eye 3D media, which promises to enhance profitability in its outdoor large screen business moving forward.”

The CICC report also stated that as certain advertisers recover from operational challenges and the effectiveness of offline advertising becomes more recognized, the demand for offline brand advertising is expected to continue rebounding.