Investment highlights:

The publishing business has a solid foundation and stabilizes the company's performance expectations;

Build a large-scale distribution system linked vertically and horizontally, and focus on building online and offline three-dimensional channels;

Multiple initiatives to promote business development;

Continuously maintain cash dividends to give back to shareholders.

Financial Forecasts and Ratings:

Expected EPS from 2019 to 2021 are 0.37 yuan, 0.41 yuan, and 0.42 yuan respectively, corresponding to price-earnings ratios of 16.62 times, 14.97 times, and 14.35 times. Recommended ratings are maintained by comprehensively considering the company's future profit growth, industry market, and valuation level.

Risk warning:

The growth rate of the company's main business fell short of expectations;

The promotion of the “Shengwen: New Life in the North” project fell short of expectations;

There have been adverse changes in industrial policy