Key investment points In the first half of 2012, Jiangxi Changyun completed passenger traffic of 32.175 million people, a year-on-year increase of 7%, a year-on-year increase of 10.79%, a year-on-year increase of 10.79%, achieved revenue of 1110.75 million yuan, an increase of 15.47% over the previous year, and achieved net profit of 6906.75, a decrease of 5.2% over the previous year. High financial costs are the main reason for the decline in performance. The financial expenses of the interim report reached 2.54 million yuan, an increase of 12.72 million yuan over the previous year, mainly due to the sharp increase in the company's interest-bearing liabilities. The 2012 interim report data was about 848 million yuan, compared to only 508 million yuan in the same period last year. The main reason for the increase was the company's investment in various areas. By business, road passenger transport is still performing well, with revenue up 7.15% year on year, while operating profit fell by about 21 million year on year, down 11%. If long-term stable bus fuel subsidies are taken into account, operating profit has basically not changed. Furthermore, the impact of last year's long-distance passenger terminal relocation still had a negative impact on the company's main business; in other businesses, gross profit from cargo transportation increased by 28% in half a year, and sales of goods fell 18%, and remained stable. Looking ahead, we are still optimistic about the company. First, the merger and acquisition integration of the main business is still expected to bring growth. The integration of Shangrao Company announced in 2010 will bring positive contributions, and according to the interim report, further merger and acquisition integration of subsidiary companies at the county level can also bring good prospects. Second, the new business can bring growth, and the media and small express delivery are interesting. Third, refinancing is expected to ease the bottlenecks in investment capacity caused by the company's high balance ratio. Finance and valuation Considering that the profit contribution from the sale of the Nanchang-Jinxian line in the first half of the year will cover financial expenses throughout the year, we maintain profit forecasts. We expect the company's earnings per share to be 0.76, 0.95, and 1.10 yuan respectively in 2012-2014. Combined with absolute valuation and relative valuation, our analysis believes that the company's reasonable valuation is 17 times 2012 PE, maintaining the target price of 12.92 yuan, and maintaining the company's purchase rating. The risk indicates the risk of high-speed rail diversion: The construction of the Xiangpu Railway, which opened to traffic in 2013, and the Hangzhou-Chang passenger line completed at the end of 2014 will create certain diversion risks for existing long-distance passenger traffic. Other risks: security risk, new business development risk, merger and acquisition risk.