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While searching for stocks I came across this Chinese stock: XFML. XFML IPO’d on March 9th 2007 and opened at 13 bucks. 2 1/2 months later its back to its opening price. Who cares right?

Well XFML is a very diversified company. Here is a blurb from their Yahoo Profile:

Xinhua Finance Media Limited operates as a diversified media company in the People�s Republic of China. The company operates in five divisions: Media Production, Broadcasting, Print, Advertising, and Research. The Media Production division operates in-house production studios that create and produce various programs, including business, entertainment, educational, and animation shows.

Who cares right?

Well I do. I just purchased SINA this past Friday and I came across this headline about XFML.

China’s leading diversified financial and entertainment media company, announced that its Advertising Group has increased its market share to nearly 50% for real estate ad sales on the Sina.com website, China’s leading portal site.

XFMedia’s Advertising Group started selling advertising for Sina.com in March 2006 as an agent for the thriving real estate sector. Earlier this year it became one of only two advertising agents handling sales for the sector at Sina.com, where its market share of ads sold has risen to nearly 50% of the real estate ads appearing on the highly-trafficked Chinese portal.

According to the 2007 forecast by Sina.com, the total advertising revenue of the real estate sector is RMB130 million (US$17 million). “Internet advertising is growing in China as in other parts of the world and XFMedia is pushing to play a major role in this area,” Xinhua Finance Media COO Mr Zhu Shan said. He went on to say “The speed with which XFMedia’s Advertising Group has moved into a commanding position in this area reflects the dynamism and market focus of the advertising sales team.”

“I am delighted that we are building such a strong relationship with Sina.com. XFMedia aims its services at high net worth individuals nationwide, so there is a good synergistic fit with the website,” said Mr Zhu. “Our sales capability is strong, and we look forward to building revenue even further in association with Sina.com in the future.”

XFMedia’s Advertising Group handles nationwide advertising for television, newspapers, magazines, online and outdoor media, among which XFMedia possesses exclusive rights to on-campus billboards in select Shanghai universities, as well as advertising for radio stations in Beijing and Shanghai. The Advertising Group designs, produces and places advertising for both in-house and outside clients.

I love this. SINA’s real estate sector is blowing up and both SINA and XFML are benefiting from tremendous growth. I’d buy them both.

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