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Hung Sheng Construction Ltd. (2534.TW)

Company Dividend Discount ModelIndustry: Real Estate - DiversifiedSector: Real Estate

Valuation Snapshot

Stable Growth$17.95 - $26.16$21.92
Multi-Stage$47.82 - $52.76$50.24
Blended Fair Value$36.08
Current Price$21.55
Upside67.41%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%-2.17%0.991.731.190.990.620.002.581.230.620.49
YoY Growth---42.86%45.83%20.00%60.00%0.00%-100.00%109.10%100.00%25.00%-60.00%
Dividend Yield--3.91%7.75%5.18%3.98%3.14%0.00%5.56%3.02%2.50%2.45%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,176.10
(-) Cash Dividends Paid (M)473.00
(=) Cash Retained (M)703.09
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)235.22147.0188.21
Cash Retained (M)703.09703.09703.09
(-) Cash Required (M)-235.22-147.01-88.21
(=) Excess Retained (M)467.87556.08614.89
(/) Shares Outstanding (M)477.61477.61477.61
(=) Excess Retained per Share0.981.161.29
LTM Dividend per Share0.990.990.99
(+) Excess Retained per Share0.981.161.29
(=) Adjusted Dividend1.972.152.28
WACC / Discount Rate6.35%6.35%6.35%
Growth Rate-4.17%-3.17%-2.17%
Fair Value$17.95$21.92$26.16
Upside / Downside-16.72%1.70%21.37%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,176.101,138.801,102.691,067.731,033.871,001.091,031.12
Payout Ratio40.22%50.17%60.13%70.09%80.04%90.00%92.50%
Projected Dividends (M)473.00571.39663.06748.34827.55900.98953.78

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.35%6.35%6.35%
Growth Rate-4.17%-3.17%-2.17%
Year 1 PV (M)531.73537.28542.83
Year 2 PV (M)574.21586.26598.43
Year 3 PV (M)603.09622.16641.64
Year 4 PV (M)620.63646.94674.09
Year 5 PV (M)628.80662.30697.22
PV of Terminal Value (M)19,879.5020,938.6122,042.39
Equity Value (M)22,837.9623,993.5625,196.59
Shares Outstanding (M)477.61477.61477.61
Fair Value$47.82$50.24$52.76
Upside / Downside121.89%133.12%144.81%

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