Investment Highlights Company Profile Zhongyuan Dadi Media Co., Ltd. (hereinafter referred to as the “Company”) is a large-scale media company whose main business is publishing and distribution, and is actively transforming and upgrading. In the A-share market media sector, it is a medium to medium market value target. Key investment points The company's financial situation is good, the asset structure is healthy, operating performance is growing steadily, cash flow is sufficient, and profitability is gradually improving. The company is currently in the phase of major asset restructuring and suspension of trading. It plans to acquire 100% of the shares of Di Nu Film and Television, and is still in the intentional planning stage. We believe that the company's acquisition intention indicates that it has plans to develop the film and television business, and that it will develop a wider layout in the media field in the future. Furthermore, for traditional publishing companies, it is currently the best time to integrate the old and new publishing business. The “Guiding Opinions on Promoting the Integrated Development of Traditional Publishing and Emerging Publishing” issued on April 9, 2015 shows the government's attitude of encouraging the deep integration of old and new publishing formats, proposes the goal of building new publishing institutions, and clarifies the level of financial support. Investment recommendations We expect total revenue from the company's original business in 2015-2016 to be 7.814 billion yuan and 8.717 billion yuan, up 10.01% and 11.55% year on year; net profit attributable to listed companies will be 822 million yuan and 1,093 million yuan, up 28.04% and 32.97% year on year. The year-on-year EPS was 1.07 and 1.43. For the first coverage, we gave an “gain” rating. Risks suggest a decline in the growth rate of the book publishing industry; major changes in the national education policy;; a mismatch between old and new business formats.