Event: The company released its 2013 annual report. In 2013, it achieved revenue of 167 million yuan, a year-on-year decrease of 6.48%. Operating profit was 52.66 million yuan, a year-on-year decrease of 29.90%. Total profit was realized at 61.67 million yuan, a year-on-year decrease of 25.07%. Net profit attributable to shareholders of listed companies was 48.67 million yuan, a year-on-year decrease of 24.07%. It achieved an EPS of 0.4056 yuan, a year-on-year decrease of 24.07%. It is planned to send 1 share for every 10 shares, increase 9 shares, and pay 0.3 yuan (tax included). Comment: The recession in the Zhuhai region is the main cause of the decline in performance. Over the past year, competition in the petrochemical storage industry in the Zhuhai region has clearly intensified, and several competitors have built new storage tanks, causing the company's storage tanks that were in short supply in the past to have difficulties in attracting investment, and the number of long-term tenants has declined. However, in 2013, the first phase of the third phase of the Zhuhai Reservoir Area project was put into operation, making up for a certain decline in business volume and resulting in basic stability in revenue. High turnover for the first time since listing is in line with the company's long-term development requirements. The annual report introduced a distribution plan: send 1 share for each share, transfer 9 shares, and pay out 0.3 yuan (tax included). The company has entered a stage of steady development. Currently, the share capital is small (120 million), and no bonus shares or share capital transfers have been sent since listing. This distribution has increased the liquidity of the company's stock, and the next few years will be a critical period for the company's cross-regional development, so the distribution plan is in line with shareholders' interests and the company's long-term development requirements. Profit forecasting and valuation. The company's EPS is expected to be 0.47, 0.56, and 0.66 yuan from 2014 to 2016. This year is the first year of the petrochemical industry chain reform, and the company is expected to benefit (the company has taken a stake to establish Shandong Oil and Gas Investment Co., Ltd.). Furthermore, the Hengqin Free Trade Zone has also had a positive impact on the company (the company has registered two subsidiaries in the Hengqin New Area). Maintain the company's “Overweight” rating.