Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

L&K Engineering (Suzhou) Co.,Ltd. (603929.SS)

Company Dividend Discount ModelIndustry: Engineering & ConstructionSector: Industrials

Valuation Snapshot

Stable Growth$274.90 - $595.91$558.46
Multi-Stage$89.73 - $98.24$93.91
Blended Fair Value$326.18
Current Price$41.94
Upside677.74%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS31.95%29.57%1.000.250.100.100.250.250.200.160.150.07
YoY Growth--300.00%150.00%0.00%-60.00%0.00%23.01%29.65%4.52%100.00%0.00%
Dividend Yield--3.07%1.19%0.59%0.88%2.44%1.78%1.03%0.62%0.49%1.05%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)639.34
(-) Cash Dividends Paid (M)213.36
(=) Cash Retained (M)425.98
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)127.8779.9247.95
Cash Retained (M)425.98425.98425.98
(-) Cash Required (M)-127.87-79.92-47.95
(=) Excess Retained (M)298.11346.06378.03
(/) Shares Outstanding (M)213.37213.37213.37
(=) Excess Retained per Share1.401.621.77
LTM Dividend per Share1.001.001.00
(+) Excess Retained per Share1.401.621.77
(=) Adjusted Dividend2.402.622.77
WACC / Discount Rate6.42%6.42%6.42%
Growth Rate5.50%6.50%7.50%
Fair Value$274.90$558.46$595.91
Upside / Downside555.47%1,231.56%1,320.87%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)639.34680.90725.16772.29822.49875.95902.23
Payout Ratio33.37%44.70%56.02%67.35%78.67%90.00%92.50%
Projected Dividends (M)213.36304.35406.26520.13647.09788.36834.56

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.42%6.42%6.42%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)283.30285.99288.67
Year 2 PV (M)352.01358.72365.49
Year 3 PV (M)419.52431.56443.83
Year 4 PV (M)485.83504.51523.73
Year 5 PV (M)550.96577.57605.20
PV of Terminal Value (M)17,054.4517,878.1818,733.45
Equity Value (M)19,146.0720,036.5320,960.37
Shares Outstanding (M)213.37213.37213.37
Fair Value$89.73$93.91$98.24
Upside / Downside113.95%123.91%134.23%

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