Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

OKE Precision Cutting Tools Co., Ltd. (688308.SS)

Company Dividend Discount ModelIndustry: Manufacturing - Tools & AccessoriesSector: Industrials

Valuation Snapshot

Stable Growth$1.53 - $2.64$2.01
Multi-Stage$2.18 - $2.39$2.28
Blended Fair Value$2.15
Current Price$22.78
Upside-90.58%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020201920182017
DPS33.22%0.00%0.480.550.470.220.120.110.040.040.000.00
YoY Growth---13.21%19.11%116.09%85.35%1.34%164.56%17.02%0.00%0.00%0.00%
Dividend Yield--2.56%2.68%0.94%0.54%0.38%0.38%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)18.60
(-) Cash Dividends Paid (M)11.15
(=) Cash Retained (M)7.44
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)3.722.321.39
Cash Retained (M)7.447.447.44
(-) Cash Required (M)-3.72-2.32-1.39
(=) Excess Retained (M)3.725.126.05
(/) Shares Outstanding (M)155.20155.20155.20
(=) Excess Retained per Share0.020.030.04
LTM Dividend per Share0.070.070.07
(+) Excess Retained per Share0.020.030.04
(=) Adjusted Dividend0.100.100.11
WACC / Discount Rate7.70%7.70%7.70%
Growth Rate1.36%2.36%3.36%
Fair Value$1.53$2.01$2.64
Upside / Downside-93.27%-91.18%-88.41%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)18.6019.0319.4819.9420.4120.9021.52
Payout Ratio59.97%65.97%71.98%77.99%83.99%90.00%92.50%
Projected Dividends (M)11.1512.5614.0215.5517.1518.8119.91

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.70%7.70%7.70%
Growth Rate1.36%2.36%3.36%
Year 1 PV (M)11.5511.6611.77
Year 2 PV (M)11.8612.0912.33
Year 3 PV (M)12.0912.4512.82
Year 4 PV (M)12.2512.7513.25
Year 5 PV (M)12.3612.9813.63
PV of Terminal Value (M)278.43292.44307.00
Equity Value (M)338.53354.36370.80
Shares Outstanding (M)155.20155.20155.20
Fair Value$2.18$2.28$2.39
Upside / Downside-90.42%-89.98%-89.51%

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