Key investment matters: Wenfeng Co., Ltd. released its 2014 quarterly report today. The company achieved revenue of 2,317 billion yuan in 1Q2014, an increase of 10.40% over the previous year; realized imputed net profit of 137 million yuan or EPS = 0.18 yuan, an increase of 33.48% over the previous year; realized imputed net profit of 136 million yuan or EPS = 0.18 yuan after deduction, an increase of 36.78% over the previous year. The high performance growth was mainly due to confirmation of real estate revenue, which is basically in line with expectations. Ping An's view: Real estate revenue confirmed a sharp increase in performance. 1Q2014, the company's revenue growth rate rose 0.4 percentage points to 10.40%, while gross margin increased by 2.21 percentage points to 18.75%, driving a sharp increase in net profit of 33.48% to 137 million yuan over the same period last year, mainly due to the impact of the revenue confirmation of the Wenjing Real Estate Project. Excluding the impact of the real estate business, we estimate that the company's revenue will increase by about 5% and profit will increase by about 10-15%, which is basically in line with expectations. The sales expense ratio of 1Q2014 company increased 0.06 percentage points to 4.64%, the management expense ratio increased by 0.01 percentage points to 3.29%, and the financial expense ratio was 0.24%, the same as the previous year. Overall, the company's expense ratio increased by 0.07 percentage points during the period and is still within a manageable range. We believe that the increase in the fee rate is mainly due to promotions and the opening of the new Wenfeng World in Xugou, Lianyungang in January. Online and offline, integrated development companies will accelerate the pace of external expansion in the future according to the development direction of “based in the Soviet Union, central and northern Jiangsu, and integrated into Shanghai in southern Jiangsu”. The 36,000-square-meter Lianyungang Xugou Wenfeng World opened in January 2014, and the 100,000-square-meter Wenfeng City Plaza in Nantong is also scheduled to open in the first half of 2014. In addition, projects such as Haimen New Wenfeng World, Qidong Wenfeng Phase II, Rugao Baipu Wenfeng World, and Rugao Wenfeng City Plaza are all in preparation. At the same time, the company is making every effort to build a localized integrated three-dimensional 020 platform - Ai Fumifeng. In the future, it will realize the dual pattern of “e-commerce plus physical stores”, integrate online and offline resources, and help the company's business development. We kept the company's 14-15 EPS forecast of 0.56 and 0.61 yuan (excluding real estate) unchanged, and maintained a “neutral” rating. Risk warning: the economy is sluggish; the pace of epitaxial expansion is lower than expected; growth in mature and established stores is weak.