NEW YORK (TheStreet) -- Shares of AirMedia Group (AMCN) are higher by 10.73% to $7.02 in mid-morning trading on Monday, after the China-based out-of-home advertising platform provider announced one of its consolidated entities has received the exclusive rights to install and operate Wi-Fi systems on ordinary trains operated by the Beijing Railway Bureau.
Guangzhou Meizheng Advertising is the entity granted the exclusive rights, AirMedia has 62% of the equity interest in that company.
At the time of the deal the Beijing Railway Bureau had 89 groups of ordinary trains in operation. Meizheng also hold the concession rights to exclusively install operate Wi-Fi systems on the Bureau's high speed trains.
"We continue to strengthen our position in Wi-Fi services in ordinary trains in China," company CEO Herman Man Guo said in a statement.
Separately, TheStreet Ratings team rates AIRMEDIA GROUP INC -ADS as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AIRMEDIA GROUP INC -ADS (AMCN) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."