Key investment events: The company issued an announcement to sell 34 commercial properties held by its subsidiary Borui Bookstore in the form of a listed sale. The sale amount is not less than 75.14 million yuan. Currently, 10 commercial properties have been sold. Dispose of inefficient assets and return funds. In 2008, Borui Communications planned to set up a “community book and newspaper sales network” and set up a network of multiple sales channels in the Chengdu area. Obvious results were achieved at the time. However, with the rapid development of the Internet and the new economy, the current physical sales networks of these books and newspapers have basically stagnated, contributing little to the company's performance. The company decided to sell these inefficient assets in order to revitalize its existing assets and concentrate its efforts on promoting the upgrading and transformation of the company's business, demonstrating the company's determination to improve on its own in the context of the overall contraction of the newspaper industry. It is also a substantial step for the company to push forward the reform of state-owned enterprises. The gene of “self-improvement and transformation” pushes the reform of state-owned enterprises. As a state-owned enterprise, Borui Communications is a model of daring to experiment and reform in China's capital market. After going public, the company promoted equity incentives, integrated many game companies, and launched financial services. Genetically speaking, it is a company with great momentum for reform. Currently, Borui Communications's regular report shows that due to the drastic decline in the traditional newspaper industry as a whole, the pressure on business operations is high. From top to bottom, the company is referring to the transformation experience of other state-owned cultural enterprises and seeking a breakthrough direction for its own transformation. We believe that in the future, whether it is further processing inefficient assets, or integrating or developing other emerging businesses, the company has a lot of room for imagination. Combining its own experience with actual controllers and assets owned by major shareholders, the company may further expand into fields such as digital entertainment, advertising and marketing, education and training in the future; however, with regard to traditional newspaper assets, currently among A-share listed companies, Zhejiang Digital Culture has been completely divested. This also has important reference and reference significance for Borui Communications, which is currently in trouble with the newspaper industry. Profit forecasts and investment advice. The 2017-2019 EPS is estimated to be 0.06 yuan, 0.06 yuan, and 0.06 yuan, respectively, and the corresponding PE is 87 times, 83 times, and 81 times. We believe that the valuation level is only a profit forecast for current assets, and the core focus of Borui Communications is mainly on future asset integration and state-owned enterprise reform. We should pay attention to the company's future reform trends and not make investment rating suggestions for Borui Communications yet. Risk warning: The pace of reform and approval time of state-owned enterprises fell short of expectations, and traditional business may have declined beyond expectations.