杭州桑拿按摩

China International Travel Service (601888): Big effort, high standards to build Haikou International Duty Free City

Introduction to this report: The company plans to invest 128.

The US $ 600 million Haikou International Duty-Free City will be built. This project will promote the rapid growth of tax-free businesses in outlying islands and significantly increase long-term performance.

Investment points: Maintain target price and increase holding level.

The EPS for 2019-2021 is maintained at 2.

42/2.

82/3.

56 yuan.

The company’s large-scale, high-standard, high-return construction of Haikou International Duty Free City is conducive to the continued expansion of the island’s duty-free cake, and raised its target price to 101.

65 yuan (+7.

86 yuan), corresponding to the estimated 42XPE in 2019, maintain the overweight rating.

Make great efforts to build Haikou International Duty Free City with high standards.

The company invested 128 in self-raised funds.

6 billion US dollars to build an international duty-free city with a planned area of 32.

40,000 square meters.

The land cost of the project is low and the location value is good.

The project is divided into six parcels of land, mainly for commercial land, including commercial, residential, commercial facilities, and hotel formats.

Developed in batches, the pressure on depreciation stalls is expected to be less.

The investment and construction of the project is carried out in two phases. The first phase develops a tax-free commercial complex + apartment + residence. The development cycle is 36 months. The second phase 北京夜网 develops a commercial block + office building + hotel.

Assuming that the first phase of the project is completed in three years, it is estimated that depreciation stalls will be sold for about 1.

900 million.

The overall profit of the project is high.

The company’s announcement disclosed that the project’s full-cycle income is expected to be about 15.2 billion yuan and the internal rate of return is about 14.

4%.

The completion of the first phase of the project in 2022 is expected to contribute to the net profit of the mother is 11.

610,000 yuan (of which tax-free shops contributed 7.

5.2 billion, land business contribution 4.

33 billion, rental income1.

6.6 billion, depreciation and amortization -1.

900 million).

Risk factors: The project progress is lower than expected, and the macro economy 深圳桑拿网 affects the demand for tax exemption.