Crown Castle International Corp Chase (600067.CH/ RMB 6.56, bought) issued an announcement: the new energy lithium battery project invested by Fujian Crown Castle International Corp Ruimin New Energy Technology Co., Ltd., a holding subsidiary, has completed the installation and commissioning of machinery and equipment for the first phase of the PACK automatic production line and battery production line, and has been officially put into production. The project is located in Rongqiao Economic Development Zone, Fuqing City, Fujian Province. the project covers an area of 79000 square meters (the planned production capacity is about 5.6GWH). The first phase has been put into production capacity of 0.9GWH. At the same time, the company announced the signing of the "Joint Construction of New Energy Materials and Devices Research Laboratory" with the Hercynian Research Institute of the Chinese Academy of Sciences.

Comment

1. The first phase of the lithium battery 0.9GWH project has been officially put into production, and the long-term production capacity is planned to exceed 5.6GWH. Crown Castle International Corp Ruimin, a joint venture subsidiary of the company and Fujian Investment Corporation, is mainly engaged in the design, production and manufacture of power battery series products, including lithium-ion batteries, chargers, electric vehicle battery modules, energy storage batteries, etc. Through Crown Castle International Corp Ruimin, the company enters the new energy industry chain in the field of power lithium battery business. Crown Castle International Corp Ruimin's technical R & D team has rich experience in the lithium industry. Dr. Wang Haoran, the team leader, has 15 years of relevant R & D and production experience, and has worked for General Motors Co and Boston Battery in the United States. The first phase of the lithium battery project has been officially put into production recently, with a capacity of 0.9GWH, while according to the project construction land planning, the long-term planned capacity will reach 5.6GWH.

two。 The new energy business will contribute nearly 100 million in net profit next year, and the scale of long-term revenue may be nearly 10 billion. In terms of orders, in the first half of the year, the company produced lithium manganate batteries for the pure electric city bus declared by Yaxing bus, which achieved a zero breakthrough in the vehicle announcement of the company's supporting products. It is expected that the advantage of equity cooperation with Fujian Investment in the future will gradually appear in the channel. According to the current average price of 1.30-1.50 yuan / WH, it is expected that the sales income will exceed 1 billion yuan after full production next year, and the net profit will reach 150 million yuan according to the industry average net interest rate of 15%. At the same time, according to the development trend of the new energy market and the actual development situation of the company, the company will further expand the scale of production capacity by speeding up later project construction or joint ventures, mergers and acquisitions. According to the existing capacity planning and design and potential extension expansion plans, we expect the long-term new energy business to achieve a sales scale of 80-10 billion yuan.

3. The value of real estate resources is greatly undervalued, and the price of employee stock ownership locks the margin of safety. The company's real estate business insists on intensive cultivation, focusing on "Greater Beijing and Greater Nanjing". At present, the cost of acquiring land for stock projects is relatively low. We estimate that the settlement value of goods is more than 30 billion yuan and RNAV136 billion yuan. At present, the market capitalization of 9.8 billion yuan is nearly 30% for the real estate business alone, which is only 1.36 times the relative net assets of 7.2 billion. From this year, the company's real estate business has gradually entered the settlement period, and the net profit is expected to continue to accelerate the release. At the same time, the company's previous two rounds of employee stock ownership plan to increase the average price of 7.67 yuan / share and 7.34 yuan / share bound to multi-interests, providing a very high margin of safety. We believe that the current value of the company's real estate resources is significantly undervalued, while the formal commissioning of the new energy business begins to contribute to incremental performance, and we reiterate the company's buy rating.