Crown Castle International Corp Chase 1Q17 performance 0.20 yuan per share
Crown Castle International Corp Chase announced 1Q17 results: operating income of 2.43 billion yuan, an increase of 105.6% over the same period last year; net profit belonging to the parent company was 290 million yuan, an increase of 24762% over the same period last year, corresponding to a profit of 0.20 yuan per share. The significant increase in performance is due to the increase in settlement and the low base of 1Q16 performance.
The settlement area has increased, and the gross profit margin has increased significantly: the company achieved operating income of 2.43 billion yuan in the first quarter, up 105.6% from the same period last year, and the comprehensive after-tax gross profit margin rose 11.8% to 25.0% over the same period last year. During the period, the real estate settlement area of the company was 65000 square meters, an increase of 38.1% over the same period last year. The main settlement project, Baiwang Xinglin Bay (355,000 square meters), is a Beijing project with a high gross profit margin.
Sales decreased compared with the same period last year: the company realized a contract sales area of 38,000 square meters in the first quarter, down 70.6 percent from the same period last year, and sales fell 70.9 percent to 470 million yuan compared with the same period last year. The main sales projects in this period include Nanjing Guancheng Lanxun (200,000 square meters) and Nantong Jun and Palm Bay (16,000 square meters).
The net debt ratio is low in the industry: the company's net debt ratio at the end of the period fell 1.2 percentage points from the beginning of the year to 5.7%. The company has 3.84 billion yuan of cash on hand at the end of the period, which is higher than 1.09 billion yuan of interest-bearing liabilities in one year.
Trend of development
The future will focus on the development of new energy sectors. In 2017, the company continued to promote the transformation of the new energy lithium battery industry, and accelerated the introduction, commissioning and installation of new energy lithium battery project equipment in the first quarter. Up to now, the cell pilot R & D line has been installed and is being debugged, and the PACK automatic production line is expected to be put into production by the end of the second quarter. Looking forward, we expect the scale of lithium battery production to further expand in 2017, which is expected to become a new profit point for the company in the future.
Profit forecast
We keep our earnings per share forecast for 2017 / 2018 unchanged.
Valuation and suggestion
At present, the company's share price corresponds to 21.0, 16.5 times the 18-year price-to-earnings ratio of 2017 Universe. We maintain a neutral rating and a target price of 7.65 yuan, which is 14.18% upside from the current share price. The target price is 24.0 times and 18.8 times corresponding to the 18-year Pmax E in 2017, respectively.
Risk.
The regulation and control of the property market continued to upgrade.
