Maintain a “Recommended” rating. The acquisition of four companies including Manyou Culture is expected to be completed in the fourth quarter of 2014. It is estimated that the company's net profit attributable to the parent company in 2014-2016 will be 1,065 million, 1,344 million yuan, and 1,515 million yuan respectively, and EPS will be 0.52 yuan, 0.66 yuan, and 0.74 yuan respectively, corresponding to the current stock price PE of 24.4, 19.4 and 17.2 times. Considering the value advantages of the company's omnmedia platform, there is huge room for future development. Considering the value of the company's all-media platform, the company's future space is vast, with reference to international media companies Segmental valuations were carried out with A-share media companies. Currently, the company is undervalued, maintaining the company's “recommended” rating.

Risk factors: (1) the implementation of the company's development strategy did not meet expectations, the company's all-media platform failed to function, and the integration of extended acquisitions fell short of expectations; (2) the risk of a decline in the original business; (3) the risk that the company's advantage in the industry would weaken due to the liberalization of the company's monopoly media license resources.