Event
On February 24, A-share media sector declined by ~ 6.5%, and SSE 300 Index fell by 4.5%. We made follow-up analysis on recent trend and future investment strategy of media sector.
Our Analysis and Estimation
According to analysis on major media companies in the first two months of 2009 and in February, we can see that whole trend was the same as the market; it performed weaker than market in February.
Investment Suggestions
We are buoyant about companies of the following three kinds:
1) Companies with clear capital operation expectation and likely to sharply improve in earnings, such as Beijing Bashi Media (600386);
2) Companies benefiting from deflation and with high growth, such as Shaanxi Broadcast & TV Network Intermediary (600831);
3) Companies with low valuation and steady growing performance, such as Chengdu B-ray Media (600880);