# Focus Media Information Technology (002027.SHE)

Canonical: https://gigainvestors.com/s/002027.SHE

Analysis as of: 2026-10-16T07:35:42.291Z. Financial observations: FY2016–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 5.23 per share; close as of 2026-10-15.

Estimated value: low CNY 4.61 per share, central CNY 5.14 per share, high CNY 5.85 per share. Buy at or below the central value CNY 5.14 per share. Valuation as of 2026-10-16T07:35:42.291Z; scenarios are not confidence intervals.

Expected annual return: 9.9% at the stated quote. About 9.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.23×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.42×

- FY2017: 0.60×

- FY2018: 0.48×

- FY2019: 0.19×

- FY2020: 0.42×

- FY2021: 0.52×

- FY2022: 0.37×

- FY2023: 0.49×

- FY2024: 0.49×

- FY2025: 0.47×

### moat: pass

- ROIC, median of available years: 51.8%

- ROIC, second-lowest year: 29.6%

- Typical minus recent gross margin: -0.0 pp

- Typical gross margin (annual median): 66.2%

- Recent gross margin (lower of latest and 3-year median): 66.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.9%

- ROIC including acquisitions, ten-year median: 45.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: >100%

- FY2017: >100%

- FY2018: 60.8%

- FY2019: 22.4%

- FY2020: 35.2%

- FY2021: 54.1%

- FY2022: 29.6%

- FY2023: 49.5%

- FY2024: 43.8%

- FY2025: 60.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.11×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 24B

- Net income, five-year total: CNY 22B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -1.3 pp

- Working capital / revenue, change between three-year averages: -9.0 pp

- Working capital / revenue, final three-year average: 21.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.01×

- FY2022: 1.06×

- FY2023: 0.97×

- FY2024: 0.96×

- FY2025: 1.82×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 142.6% vs 49.5%

- Per-share earnings: 0.40 to 0.33 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: CNY -107B

- Cumulative retained earnings: CNY 6.4B

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -2.4%

- Per-share value change: CNY -0.06

- Per-share value, starting three-year median: CNY 0.40

- Per-share value, ending three-year median: CNY 0.33

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 0.6%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 192M

- Cumulative net income, 10 years: CNY 44B

- ROIC, first three-year median: >100%

- ROIC, last three-year median: 49.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.30

- FY2017: CNY 0.40

- FY2018: CNY 0.40

- FY2019: CNY 0.13

- FY2020: CNY 0.28

- FY2021: CNY 0.42

- FY2022: CNY 0.19

- FY2023: CNY 0.33

- FY2024: CNY 0.36

- FY2025: CNY 0.20

### accounting: pass

- Sloan accruals: -21.1%

- Receivables to sales index (DSRI): 1.30×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.45×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.9%

- FY2017: 11.9%

- FY2018: 10.7%

- FY2019: -8.3%

- FY2020: -5.1%

- FY2021: -13.8%

- FY2022: -15.5%

- FY2023: -11.7%

- FY2024: -6.5%

- FY2025: -21.1%

## Holders

## Price story

Down 37% since Aug 2025 · sales +4%

Story as of 2026-10-16T10:00:05.857Z; price observation 2026-10-15.

Price needs cash profits to grow 1.1% a year for ten years

### Sales · FY2024–2025

sales +4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 10B 

- FY2017: CNY 12B 

- FY2018: CNY 15B 

- FY2019: CNY 12B 

- FY2020: CNY 12B 

- FY2021: CNY 15B 

- FY2022: CNY 9.4B 

- FY2023: CNY 12B 

- FY2024: CNY 12B 

- FY2025: CNY 13B 

### Gross margin · FY2025

gross margin 70.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 92.7% 

- FY2017: 72.7% 

- FY2018: 66.2% 

- FY2019: 45.2% 

- FY2020: 63.2% 

- FY2021: 67.5% 

- FY2022: 59.7% 

- FY2023: 65.5% 

- FY2024: 66.3% 

- FY2025: 70.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in advertising agencies; annual sales are CNY 12.8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); FY2025: revenue 12758696542.16; grossProfit 8992843197.99; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002027.SHE: Focus Media Information Technology Co., Ltd. engages in the development and operation of outdoor advertising in the life circle media in China. It offers LCD TV display network, digital frame network, poster frame network, and movie theater ad network services. Focus Media Information Technology Co., Ltd. was formerly known as Hedy Holdings Co., Ltd. The company was founded in 1997 and is headquartered in Shanghai, China.

### Why customers stay

Margins ranged from 65.5% to 70.5% during 2023–25; it earns 51.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); FY2023: grossProfit / revenue = 65.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); FY2024: grossProfit / revenue = 66.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); FY2025: grossProfit / revenue = 70.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); 10-year return on capital observations [[2016,1.7821360780649917],[2017,1.4255175378635874],[2018,0.6077960529367183],[2019,0.22410728117026352],[2020,0.3521407015172539],[2021,0.5413342192542675],[2022,0.29641020415682706],[2023,0.4946146888219708],[2024,0.43800188282352825],[2025,0.6052119476782675]]; median 0.5179744540381191. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); FY2016: growth capex 0; upkeep 94956319; owner earnings 4482053653. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); FY2017: growth capex 50560550.92505741; upkeep 212757417.0749426; owner earnings 5923741384.925057. Growth capex / owner earnings = 0.00853523941030337.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); FY2018: growth capex 152124067.1337905; upkeep 1556706731.8662095; owner earnings 4491324807.133791. Growth capex / owner earnings = 0.03387064477994653.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); FY2019: growth capex 0; upkeep 342638318; owner earnings 2032472771. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); FY2020: growth capex 0; upkeep 61129824; owner earnings 4443460835. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); FY2021: growth capex 0; upkeep 249947082; owner earnings 6129799477.728. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); FY2022: growth capex 0; upkeep 95172410; owner earnings 2948385942.86. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); FY2023: growth capex 0; upkeep 273311792.8; owner earnings 4706216373.6. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); FY2024: growth capex 113253037.54655248; upkeep 205091881.45344752; owner earnings 4969352066.020553. Growth capex / owner earnings = 0.022790302647492894.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); FY2025: growth capex 0; upkeep 157001279.43; owner earnings 5366329856.606. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); Dividend observations: [[2016,1095558442],[2017,3584688430],[2018,1266094526],[2019,1488208866],[2020,1010414980],[2021,4664830511],[2022,3899393926],[2023,6066934448.02],[2024,6210145882],[2025,5476476953.95]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 34.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002027.SHE SharesStats.PercentInsiders = 34.466 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 1.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:42.291Z); Ten-year compound average after fade. Initial solved rate 0.003541738250701365. Price 5.23; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 15.63 per share

- 2016-11: CNY 16.94 per share

- 2016-12: CNY 14.27 per share

- 2017-01: CNY 13.55 per share

- 2017-02: CNY 12.35 per share

- 2017-03: CNY 12.17 per share

- 2017-04: CNY 12.64 per share

- 2017-05: CNY 12.88 per share

- 2017-06: CNY 13.76 per share

- 2017-07: CNY 8.88 per share

- 2017-08: CNY 9.37 per share

- 2017-09: CNY 10.05 per share

- 2017-10: CNY 11.90 per share

- 2017-11: CNY 12.00 per share

- 2017-12: CNY 14.08 per share

- 2018-01: CNY 14.30 per share

- 2018-02: CNY 15.02 per share

- 2018-03: CNY 12.89 per share

- 2018-04: CNY 11.23 per share

- 2018-05: CNY 12.49 per share

- 2018-06: CNY 9.57 per share

- 2018-07: CNY 10.60 per share

- 2018-08: CNY 8.59 per share

- 2018-09: CNY 8.51 per share

- 2018-10: CNY 6.00 per share

- 2018-11: CNY 5.75 per share

- 2018-12: CNY 5.24 per share

- 2019-01: CNY 5.44 per share

- 2019-02: CNY 6.74 per share

- 2019-03: CNY 6.27 per share

- 2019-04: CNY 6.10 per share

- 2019-05: CNY 5.56 per share

- 2019-06: CNY 5.29 per share

- 2019-07: CNY 5.06 per share

- 2019-08: CNY 5.37 per share

- 2019-09: CNY 5.25 per share

- 2019-10: CNY 6.00 per share

- 2019-11: CNY 5.60 per share

- 2019-12: CNY 6.26 per share

- 2020-01: CNY 5.89 per share

- 2020-02: CNY 5.34 per share

- 2020-03: CNY 4.42 per share

- 2020-04: CNY 4.82 per share

- 2020-05: CNY 4.89 per share

- 2020-06: CNY 5.59 per share

- 2020-07: CNY 6.07 per share

- 2020-08: CNY 7.52 per share

- 2020-09: CNY 8.04 per share

- 2020-10: CNY 9.35 per share

- 2020-11: CNY 9.70 per share

- 2020-12: CNY 9.87 per share

- 2021-01: CNY 10.86 per share

- 2021-02: CNY 10.95 per share

- 2021-03: CNY 9.28 per share

- 2021-04: CNY 10.78 per share

- 2021-05: CNY 10.24 per share

- 2021-06: CNY 9.41 per share

- 2021-07: CNY 7.50 per share

- 2021-08: CNY 7.19 per share

- 2021-09: CNY 7.32 per share

- 2021-10: CNY 7.36 per share

- 2021-11: CNY 7.07 per share

- 2021-12: CNY 8.19 per share

- 2022-01: CNY 7.62 per share

- 2022-02: CNY 7.65 per share

- 2022-03: CNY 6.11 per share

- 2022-04: CNY 5.83 per share

- 2022-05: CNY 6.42 per share

- 2022-06: CNY 6.73 per share

- 2022-07: CNY 5.91 per share

- 2022-08: CNY 6.06 per share

- 2022-09: CNY 5.52 per share

- 2022-10: CNY 4.48 per share

- 2022-11: CNY 5.99 per share

- 2022-12: CNY 6.68 per share

- 2023-01: CNY 6.95 per share

- 2023-02: CNY 6.54 per share

- 2023-03: CNY 6.87 per share

- 2023-04: CNY 6.44 per share

- 2023-05: CNY 6.42 per share

- 2023-06: CNY 6.81 per share

- 2023-07: CNY 7.45 per share

- 2023-08: CNY 7.70 per share

- 2023-09: CNY 7.15 per share

- 2023-10: CNY 6.92 per share

- 2023-11: CNY 6.54 per share

- 2023-12: CNY 6.32 per share

- 2024-01: CNY 5.65 per share

- 2024-02: CNY 6.30 per share

- 2024-03: CNY 6.52 per share

- 2024-04: CNY 6.50 per share

- 2024-05: CNY 6.34 per share

- 2024-06: CNY 6.06 per share

- 2024-07: CNY 5.80 per share

- 2024-08: CNY 5.73 per share

- 2024-09: CNY 7.07 per share

- 2024-10: CNY 7.20 per share

- 2024-11: CNY 6.90 per share

- 2024-12: CNY 7.03 per share

- 2025-01: CNY 6.62 per share

- 2025-02: CNY 6.35 per share

- 2025-03: CNY 7.02 per share

- 2025-04: CNY 7.20 per share

- 2025-05: CNY 7.47 per share

- 2025-06: CNY 7.30 per share

- 2025-07: CNY 7.50 per share

- 2025-08: CNY 8.31 per share

- 2025-09: CNY 8.06 per share

- 2025-10: CNY 7.75 per share

- 2025-11: CNY 7.35 per share

- 2025-12: CNY 7.37 per share

- 2026-01: CNY 7.20 per share

- 2026-02: CNY 7.07 per share

- 2026-03: CNY 6.55 per share

- 2026-04: CNY 6.29 per share

- 2026-05: CNY 5.58 per share

- 2026-06: CNY 4.84 per share

- 2026-07: CNY 5.62 per share

- 2026-08: CNY 4.97 per share

- 2026-09: CNY 4.73 per share

- 2026-10: CNY 5.10 per share

## Annual estimated value (CNY per share)

- FY2020: low CNY 3.78 per share, central CNY 4.24 per share, high CNY 4.86 per share

- FY2021: low CNY 4.64 per share, central CNY 5.21 per share, high CNY 5.97 per share

- FY2022: low CNY 2.77 per share, central CNY 3.08 per share, high CNY 3.49 per share

- FY2023: low CNY 3.91 per share, central CNY 4.36 per share, high CNY 4.97 per share

- FY2024: low CNY 4.08 per share, central CNY 4.59 per share, high CNY 5.26 per share

- FY2025: low CNY 4.42 per share, central CNY 4.96 per share, high CNY 5.68 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations