Xiangeqing (002306.CH/ RMB 9.63, buy) announced the 2012 performance forecast: During the reporting period, the company achieved total operating income of 1,379 billion yuan, an increase of 11.66% over the previous year; realized net profit attributable to shareholders of the parent company of 120 million yuan, an increase of 29.35% over the previous year, and achieved earnings per share of 0.3 yuan. The company's revenue and net profit growth fell short of expectations. The company's future focus is on the rapid growth of businesses such as fast food and group meals, the increase in performance brought about by continued mergers and acquisitions, and the catalytic effects of stock prices to maintain buying ratings. The main reason why the 2012 performance was lower than expected is that the company's high-end restaurants were greatly affected by the decline in macroeconomic growth, and its revenue growth rate declined quarterly (as shown in Chart 1). Weak revenue-side growth and rising raw material and labor costs are squeezing the company's profit margins in both directions, and the company's net profit growth clearly fell short of the target in early 2012. High-end catering is greatly affected by macroeconomics and anti-corruption: the company's business covers luxury restaurants, high-end restaurants, popular restaurants, and group fast food from the top down. Influenced by macroeconomics and “anti-corruption, anti-three public” consumption, we believe that the company's luxury catering and high-end catering businesses faced a more serious business situation in 2013. According to a survey report issued by the China Culinary Association, most companies are not optimistic about the state of the food and beverage market in 2013. About 30% of companies believe that the growth rate of the industry will fall below 10% in 2013, about 32% of enterprises believe that the level of 2012 will remain, and about 30% of companies believe that it remains to be seen. Only about 8% of companies believe that the catering industry will continue to grow rapidly at a rate of more than 15%, and almost all of these companies are fast food companies. Popular catering has great potential: According to industry data, China's group meal market share already accounts for more than 30% of the overall catering market, and about 50% of the fast food market share. In particular, in regions such as the Yangtze River Delta and Pearl River Delta, the group meal industry is growing at a rate of 20% every year. Although the company is a later entrant in the group meal industry, it has strong financial advantages and brand effects, strong customer resource acquisition and integration capabilities, and promising growth prospects.