The matter company released its 2013 performance forecast. Operating income was 1.67 billion yuan, down 11% year on year; net profit attributable to shareholders of listed companies is expected to be 310 million yuan, up 13.7% year on year; realized gross profit margin was 18.8%, up 4.1 percentage points year on year; and EPS was 0.45 yuan, up 13.7% year on year. Key Opinion 1. Business Review: Merger and acquisition of Champs Elysées to begin a path of transformation. 1. Traditional business: The company's traditional printing and advertising business is influenced by the industry, and its performance is relatively stable. Judging that the company has achieved a level of growth above the industry average through innovative models such as the community newspaper business. 2. New business expansion: The company actively promotes extension business and carries out strategic transformation through extension. The company's major outreach activities in 2013 include announcing the acquisition of outdoor media company Champs Elysées. 2. Future prospects: marketing, lottery, and games are important points of interest. 1. Traditional business: The company will further innovate traditional business and transform into a relatively high-profit, high-life cycle business in traditional business. 2. New business expansion: Champs-Elysées's 2013-2015 performance promises were 56.83 million yuan, 68.7 million yuan, and 81.56 million yuan, respectively. Judging from around May 2014, they were combined. The company is actively testing emerging fields such as water tickets, games, marketing, and online education. It is expected to become an important financing platform for Guangzhou's state-owned enterprise reform in the future and 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, and the current stock price corresponding to PE is 41 times, 40 times, and 37 times, respectively. Considering the company's strong momentum for epitaxial transformation, there is still plenty of room for improvement in future market value, so a recommended rating is given. The company's subsequent stock price catalysts: the lottery business was officially launched for sale before the 2014 World Cup, substantial progress was made in the game business, and the integration of state-owned enterprise reform began. Risk Reminder 1. Outreach progress has fallen short of expectations. 2. The decline in traditional business was higher than expected