The performance was higher than expected. Guannong Co., Ltd. achieved operating income of 1.28 billion yuan in 2013, an increase of 19% over the previous year, and a net profit of 300 million yuan, an increase of 19% over the previous year, a combined earnings of 0.82 yuan per share, higher than our expectations of 0.76 yuan. The company achieved investment income of 300 million yuan in Luo Potassium, a year-on-year decrease of 23%. In 2013, the company plans to distribute a cash dividend of 2.5 yuan (tax included) for every 10 shares. The development trend looks ahead to the potash market in 2014. We believe that the price of potash fertilizer has initially bottomed out, and there is limited room for decline. The following positive factors deserve continued attention: 1) Global potash stocks have declined, but are still high. Potash stocks began to decline gradually in the first half of '13. But stocks in major potash importers, such as Brazil, India, and China, remain high. 2) India's exchange rate has stabilized, and the subsidy policy remains consistent with 2013, so demand is expected to rise steadily. Currently, INR/USD remains stable around 0.0166. India's chemical fertilizer subsidy policy in 2014 remains the policy of 13 years, and demand is expected to increase. 3) International oil prices remain stable, and Brazil's potash import demand is stable. There is a high degree of positive correlation between demand for potash in Brazil and international oil prices. If international oil prices do not rise sharply in the next year, Brazil's import demand for potash fertilizer is expected to remain stable. Profit forecast adjustments We lowered the company's earnings per share in 2014 to 0.51 yuan, a reduction of 39%. We forecast earnings per share of $0.64 for 2015. The valuation and proposed current stock price corresponding to 2014-2015 PE are 29x and 23x, respectively. Maintain a prudent recommendation rating, with a target price of 17 yuan. Risk warning: low potash prices; downside risk in market valuation centers.