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SDIC Power Holdings Co., Ltd. (600886.SS)

Company Dividend Discount ModelIndustry: Renewable UtilitiesSector: Utilities

Valuation Snapshot

Stable Growth$25.62 - $110.45$44.43
Multi-Stage$23.26 - $25.48$24.35
Blended Fair Value$34.39
Current Price$13.06
Upside163.33%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-13.84%-7.46%0.480.900.850.990.971.000.940.941.001.14
YoY Growth---47.40%6.33%-13.62%1.74%-3.41%6.25%0.29%-5.65%-12.80%10.71%
Dividend Yield--3.30%6.11%7.87%10.55%9.75%12.63%11.23%13.24%13.25%16.58%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6,582.27
(-) Cash Dividends Paid (M)3,379.48
(=) Cash Retained (M)3,202.79
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,316.45822.78493.67
Cash Retained (M)3,202.793,202.793,202.79
(-) Cash Required (M)-1,316.45-822.78-493.67
(=) Excess Retained (M)1,886.332,380.002,709.12
(/) Shares Outstanding (M)7,747.657,747.657,747.65
(=) Excess Retained per Share0.240.310.35
LTM Dividend per Share0.440.440.44
(+) Excess Retained per Share0.240.310.35
(=) Adjusted Dividend0.680.740.79
WACC / Discount Rate6.49%6.49%6.49%
Growth Rate3.74%4.74%5.74%
Fair Value$25.62$44.43$110.45
Upside / Downside96.15%240.22%745.70%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6,582.276,894.117,220.727,562.817,921.108,296.378,545.26
Payout Ratio51.34%59.07%66.81%74.54%82.27%90.00%92.50%
Projected Dividends (M)3,379.484,072.614,823.835,637.086,516.577,466.747,904.37

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.49%6.49%6.49%
Growth Rate3.74%4.74%5.74%
Year 1 PV (M)3,787.893,824.413,860.92
Year 2 PV (M)4,172.944,253.784,335.39
Year 3 PV (M)4,535.554,667.984,802.96
Year 4 PV (M)4,876.625,067.405,263.71
Year 5 PV (M)5,197.045,452.415,717.71
PV of Terminal Value (M)157,643.65165,389.75173,437.39
Equity Value (M)180,213.69188,655.71197,418.10
Shares Outstanding (M)7,747.657,747.657,747.65
Fair Value$23.26$24.35$25.48
Upside / Downside78.10%86.45%95.11%

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