The performance of the China News exceeded expectations, and the sales rate of core ads increased:

Affected by the pick-up in demand from advertisers in the first half of the year, the company recorded revenue of 860 million yuan in the first half of the year, an increase of 23% over the same period last year. In terms of business, the revenue of advertising contracting agencies increased by 24% compared with the same period last year, accounting for 96.5% of the revenue, which has become the main driving force of the increase in total revenue. The sales rate of the company's core advertising period reached 70%, compared with 60.3% in the last fiscal year. Brand integration business dropped 38% from the same period last year, which is somewhat different from what we had expected, but we still maintain our expectation of full-year growth under the condition of a rebound in demand from advertisers; creative production business increased by 96% compared with the same period last year, reflecting the rapid growth of the company's new media platform, which is expected to become the main growth driver of the company in the future. In addition, 13 million of rental income was recorded in the first half of this year, but it accounted for a small proportion of the income. The gross profit margin in the first half of the year was 35%, and the net profit attributable to shareholders was 170 million yuan, an increase of 115% over the same period last year.

Rise abruptly based on accumulated strength to create a new media platform with targeted content:

The company actively optimizes the content of previous acquisitions of Internet platforms. For example, in the past, the company obtained the content resources of hundreds of urban TV stations at a very low cost, which mainly focused on people's livelihood. The company puts these resources in the way of video to the video website "Broadcasting Network" owned by the company, which makes the content of "Broadcasting Network" closer to people's life and improves the viscosity of users. We believe that a similar approach will enable companies to give full play to the targeted and in-depth advantages of their platforms in the highly competitive Internet platform market, and help companies expand the market share of these platforms. We expect the company's Internet platform to break even in 2014.

Target price of HK $8.31, maintain buy rating:

The current price of China Television Jinqiao corresponds to the forecast EPS of 8.46x PE in 2013, and the historical average PE level is 7.71x. We believe that the company's performance growth in 2013 has been relatively certain. According to the growth of the company's business in the new media platform, the company is given a target price of HK $8.31, with a target price of HK $8.31, which is 15% higher than the current price.