Definitive Analysis
Definitive Analysis

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Towngas Smart Energy Company Limited (1083.HK)

Company Dividend Discount ModelIndustry: Regulated GasSector: Utilities

Valuation Snapshot

Stable Growth$76.39 - $148.00$138.70
Multi-Stage$22.65 - $24.82$23.71
Blended Fair Value$81.21
Current Price$3.94
Upside1,961.11%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS17.90%12.26%0.050.040.030.020.020.020.030.010.020.03
YoY Growth--11.74%25.03%78.50%-5.61%-3.24%-30.48%118.82%-21.54%-35.48%81.13%
Dividend Yield--1.41%1.24%0.82%0.27%0.55%0.37%0.49%0.21%0.41%0.57%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,823.72
(-) Cash Dividends Paid (M)323.81
(=) Cash Retained (M)2,499.91
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)564.74352.96211.78
Cash Retained (M)2,499.912,499.912,499.91
(-) Cash Required (M)-564.74-352.96-211.78
(=) Excess Retained (M)1,935.172,146.952,288.13
(/) Shares Outstanding (M)3,794.283,794.283,794.28
(=) Excess Retained per Share0.510.570.60
LTM Dividend per Share0.090.090.09
(+) Excess Retained per Share0.510.570.60
(=) Adjusted Dividend0.600.650.69
WACC / Discount Rate6.32%6.32%6.32%
Growth Rate5.50%6.50%7.50%
Fair Value$76.39$138.70$148.00
Upside / Downside1,838.89%3,420.33%3,656.43%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,823.723,007.263,202.733,410.913,632.623,868.743,984.80
Payout Ratio11.47%27.17%42.88%58.59%74.29%90.00%92.50%
Projected Dividends (M)323.81817.191,373.351,998.352,698.803,481.873,685.94

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.32%6.32%6.32%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)761.38768.60775.81
Year 2 PV (M)1,192.171,214.881,237.80
Year 3 PV (M)1,616.251,662.641,709.92
Year 4 PV (M)2,033.702,111.912,192.35
Year 5 PV (M)2,444.592,562.672,685.26
PV of Terminal Value (M)77,896.0481,658.4585,564.86
Equity Value (M)85,944.1389,979.1494,166.00
Shares Outstanding (M)3,794.283,794.283,794.28
Fair Value$22.65$23.71$24.82
Upside / Downside474.90%501.89%529.89%

High-Yield Dividend Screener

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