Matter The company released its 2013 performance forecast. Operating revenue of 1.67 billion yuan, down 11% year on year; net profit attributable to shareholders of listed companies is expected to be 310 million, up 13.7% year on year; achieving gross profit margin of 18.8%, up 4.1 percentage points year on year; achieving EPS of 0.45 yuan, up 13.7% year on year. Main opinion 1. Business review: Mergers and acquisitions of the Champs Elysées began the path of transformation. 1. Traditional business: The company's traditional printing and advertising business is influenced by the regulated industry, and its performance is relatively stable. It is judged that the company has achieved a growth level above the industry average through innovative models such as the Community Newspaper business. 2. New business expansion: The company actively promotes epitaxial business and carries out strategic transformation through epitaxial extension. The company's major outreach actions in 2013 include announcing the acquisition of outdoor media company Champs Elysées Media. 2. Future outlook: Marketing, lottery, and gaming are important highlights. 1. Traditional business: The company will further innovate the traditional business and transform it into a relatively high-profit and high-life cycle business in the traditional business. 2. New business expansion: The Champs Elysées 2013-2015 performance promises were 56.83 million yuan, 68.7 million yuan, and 81.56 million yuan, respectively, judging to be combined around May 2014. The company is actively testing emerging fields such as water-based ticketing, gaming, marketing, and online education, and is expected to become an important financing platform for Guangzhou's state-owned enterprise reform in the future, which deserves active attention. 3. It is predicted that the company's 2013-2015 EPS will be 0.45 yuan, 0.47 yuan, and 0.51 yuan respectively. The current stock price is 41 times, 40 times, and 37 times PE, respectively. Considering the company's strong momentum for epitaxial transformation, there is still plenty of room for improvement in future market value, and a recommended rating is given. The company's subsequent stock price catalyst: the lottery business was officially launched before the 2014 World Cup, substantial progress was made in the game business, and the reform and integration of state-owned enterprises began. Risk Warning 1. The progress of the extension fell short of expectations. 2. The decline in traditional business was higher than expected