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Lee & Man Paper Manufacturing Limited (2314.HK)

Company Dividend Discount ModelIndustry: Paper, Lumber & Forest ProductsSector: Basic Materials

Valuation Snapshot

Stable Growth$4.87 - $7.10$5.95
Multi-Stage$12.99 - $14.34$13.66
Blended Fair Value$9.80
Current Price$2.27
Upside331.79%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-15.49%-2.19%0.120.060.180.330.250.290.410.290.220.17
YoY Growth--111.36%-66.92%-47.33%32.00%-11.33%-31.00%40.44%35.38%26.40%12.06%
Dividend Yield--5.10%2.54%5.11%6.16%3.98%4.83%6.22%3.14%3.61%3.97%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,866.94
(-) Cash Dividends Paid (M)829.32
(=) Cash Retained (M)2,037.62
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)573.39358.37215.02
Cash Retained (M)2,037.622,037.622,037.62
(-) Cash Required (M)-573.39-358.37-215.02
(=) Excess Retained (M)1,464.231,679.251,822.60
(/) Shares Outstanding (M)4,299.054,299.054,299.05
(=) Excess Retained per Share0.340.390.42
LTM Dividend per Share0.190.190.19
(+) Excess Retained per Share0.340.390.42
(=) Adjusted Dividend0.530.580.62
WACC / Discount Rate6.30%6.30%6.30%
Growth Rate-4.19%-3.19%-2.19%
Fair Value$4.87$5.95$7.10
Upside / Downside114.50%162.02%212.78%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,866.942,775.362,686.702,600.882,517.802,437.372,510.49
Payout Ratio28.93%41.14%53.36%65.57%77.79%90.00%92.50%
Projected Dividends (M)829.321,141.831,433.521,705.421,958.482,193.632,322.20

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.30%6.30%6.30%
Growth Rate-4.19%-3.19%-2.19%
Year 1 PV (M)1,063.031,074.121,085.22
Year 2 PV (M)1,242.501,268.571,294.91
Year 3 PV (M)1,376.151,419.691,464.15
Year 4 PV (M)1,471.291,533.691,598.05
Year 5 PV (M)1,534.231,615.991,701.19
PV of Terminal Value (M)49,173.2251,793.6654,524.63
Equity Value (M)55,860.4258,705.7261,668.16
Shares Outstanding (M)4,299.054,299.054,299.05
Fair Value$12.99$13.66$14.34
Upside / Downside472.41%501.56%531.92%

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