Morgan Stanley issued their guidance on Clear Media Ltd.'s EPS performance for FY08 and FY09, projecting HKD 0.47 and HKD 0.45 respectively, down from its previous guidance of HKD 0.48, but still maintained a ‘Buy’ rating on the stock.

Morgan Stanley analysts estimate that Clear Media Ltd.’s sales turnover in 1H 2008 will be HKD 600 mln, a 36% increase YOY, with a 76% profit increase YOY, the results of a 22% increase in the average price of advertising and the signing of new contracts during the 2008 Beijing Olympic Games with sponsors such as Coca-Cola and Samsung. Despite a 6% drop in market share in Guangdong Province, its huge network coverage will be able to survive a post-Olympic slowdown in the domestic economy and corresponding drop in advertising revenue.

Source: www.aastocks.com

Date: 1 Aug 2008

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