Key investment performance increased 150% year over year. On July 28, Huawen Media released its semi-annual report. In January-June, the company achieved revenue and operating income of 1,658 million yuan, a year-on-year decrease of 7.57%; realized net profit attributable to owners of the parent company of 610 million yuan, an increase of 150.27% over the previous year; net profit attributable to the parent company after deduction was 343 million yuan, an increase of 171.13% over the previous year; and the corresponding diluted EPS was 0.30 yuan. In line with market expectations. The increase in the share of new media enhances profitability. The company's performance achieved significant growth, mainly due to the restructuring and mergers and acquisitions of Huashang Media in 2013 and related assets such as minority shareholder interests, and the transfer of shares in Changliu Corporation to increase investment income. The company's gross margin rose from 37.98% year on year to 47.79%, mainly due to the increase in the company's new media revenue share; net profit margin rose from 21.50% year on year to 38.71%, reflecting the synergy of various businesses under the company's strengthened ability to integrate resources. In May of this year, the company plans to further strengthen the company's layout in the field of new media by integrating 100% of Guoshi Shanghai's shares, Control Yitong's 100% shares, Jingshi Culture's 60% shares, Bangfu Software's 100% shares, and Manyou Culture's 85.61% shares. The competitive advantages of license and channel integration are highlighted. The recent strengthening of state regulation in the field of Internet television integrated broadcast control and content integration, and the strengthening of mobile Internet content requirements reflect the country's increased emphasis on content integration and broadcast control during the rapid development of new media channels. As the only listing and operation platform for China International, the company enjoys licenses for all media channels including broadcasting, newspapers, Internet television integrated broadcast control, mobile video operations, etc., and has built its own operating channels on this basis (such as integrating Yitong and Watching Culture). It is expected that the layout of the content integration platform will be further strengthened in the future (for example, integrating Chenghuai Technology and Guangzhou Manyou in 2013). At present, the company has initially formed a clear layout of the three sectors of monopoly resources (media channels), competitive resources (TV drama production and vertical websites), and strategic resources (PE venture capital), covering comprehensive media businesses such as newspapers, broadcasting, Internet television operations, mobile video, animation, building advertising, public opinion, vertical study abroad websites, financial information and services, TV drama production, and equity investment. We believe that the company has now entered a period of rapid release, regardless of whether it is expanding its revenue or increasing its profitability. The target price is 19.38-20.40 yuan, which reaffirms the “buy” rating. In 2012, the company completed the actual controller change, and in 2013, the company strengthened the integration of traditional media resources. We expect 2014 to begin a year of fine management and brand building for the company's channel platform. It is estimated that the EPS that the company can achieve in 2014-2016 is 0.51 yuan, 0.70 yuan, and 0.81 yuan, respectively, corresponding to 24.84 times, 18.11 times, and 15.75 times PE, respectively. We believe that the company's asset structure and management and operation capabilities are undergoing positive and obvious changes, speeding up the acquisition of high returns through hijacking channels to integrate content. The target price is 19.38 yuan to 20.40 yuan, which reaffirms the “buy” rating.