Crown Castle International Corp's performance per share is 0.34 yuan, which is in line with expectations.
Crown Castle International Corp Chase announced 1H17 results: operating income 3.75 billion yuan, an increase of 54.3% over the same period last year; net profit belonging to the parent company was 510 million, an increase of 1393% over the same period last year, corresponding to 0.34 yuan per share, in line with expectations.
Baiwang Xinglin Bay project settlement pull performance: the company settled Beijing Baiwang Xinglin Bay project 37,000 square meters in the first half of the year, with settlement income of 1.4 billion yuan, accounting for ~ 70% of the total real estate settlement revenue. Due to the high gross profit margin of the Baiwang Xinglin Bay project, the settlement of the project led to a substantial increase in performance.
Sales decreased, mainly selling projects in East China: the company sold an area of 95,000 square meters in the first half of the year, with a sales amount of 1.33 billion yuan, down 58.5% and 47.4% respectively from the same period last year. The main sales projects are Nanjing Crown Castle International Corp Datong Blue County (25,000 square meters) and Nantong Jun and Palm Bay (35,000 square meters).
Trend of development
"Greater Beijing, Greater Nanjing" dual regional development: the company's Beijing Baiwang Xinglin Bay Project, Beijing Northwest Wangxin Village Project and Nanjing Crown Castle International Corp Chase Lanjun Project have sufficient resources, which provide a guarantee for the company's future sales and settlement.
Actively develop new energy business: the company will actively develop new energy business and increase R & D investment, and related projects will gradually land or expand in the second half of the year.
Profit forecast
Due to the settlement of a large number of Beijing projects, we have raised our earnings per share forecasts for 2017 and 2018 by 25% and 23% from 0.32 yuan and 0.41 yuan to 0.4 yuan and 0.5 yuan, respectively.
Valuation and suggestion
At present, the company's share price corresponds to 19.0, 15.2 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 0.66% higher than the current share price.
Risk.
The regulation of the property market has been further upgraded.
