The company released its 2014 quarterly report on April 26. The first quarter of 2014 achieved operating income of 559 million yuan, a year-on-year decrease of 3.64%, total profit of 102 million yuan, a year-on-year decrease of 1.12%, attributable net profit of 73.21 million yuan, a year-on-year decrease of 0.4%, and non-net profit of 67.77 million yuan, a year-on-year decrease of 4.38%. Earnings per diluted share were $0.176, and operating cash flow per share was $0.05. At the same time, the company also expects the net profit attributable from January to June 2014 to change year-on-year [-10%, 10%], that is, 11-135 million yuan, or about 0.27-0.32 yuan in EPS. Brief reviews and investment recommendations. The company achieved revenue of 559 million yuan in the first quarter, a year-on-year decrease of 3.54%. This is reflected in the weak endogenous growth of traditional department stores in the core business districts of first-tier cities in the absence of incremental expansion and business format transformation. The increase in gross margin of 0.33 percentage points to 29.98% may be related to reduced promotions or other increases in business share. Although the total amount of sales and management expenses did not change much, the decline in revenue still caused the expense ratio to increase by 0.47 percentage points to 11.89%; financial income decreased by 120,000 yuan to 350,000 yuan, and the overall period cost rate increased by 0.48 percentage points. Investment income increased by 2.83 million yuan due to the increase in income from wealth management products. The final attributable net profit fell slightly by 0.4% year on year, while net profit after deducting non-net profit decreased by 4.38%. Maintain profit forecasts. The company's 2014-2016 EPS is expected to be 0.59, 0.60 and 0.62 yuan respectively, with increases of 0.41%, 1.23% and 2.91%, respectively. The company's current stock price of 10.18 yuan is 17.2, 17.0, and 16.5 times that of 2014-2016 PE; the current market value of 4.2 billion yuan, which corresponds to the dynamic PS of sales revenue of 2.14 billion yuan in 2014, is 2 times that of sales revenue of 2.14 billion yuan, and both PE and PS valuations are higher than the industry average. Risk and uncertainty: the fierce competitive environment of the department store industry in Shanghai; the impact of epitaxial expansion, etc.