Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Zhe Kuang Heavy Industry Co.,Ltd. (300837.SZ)

Company Dividend Discount ModelIndustry: Agricultural - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$15.34 - $77.74$31.66
Multi-Stage$8.81 - $9.62$9.21
Blended Fair Value$20.44
Current Price$25.24
Upside-19.03%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162014
DPS186.59%19.09%0.300.280.280.280.000.000.020.030.040.05
YoY Growth--4.25%0.19%0.00%0.00%-100.00%-90.77%-39.72%-34.32%-21.27%3.18%
Dividend Yield--1.39%1.15%0.61%0.72%0.00%0.01%0.07%0.00%0.00%0.21%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)41.33
(-) Cash Dividends Paid (M)32.59
(=) Cash Retained (M)8.74
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)8.275.173.10
Cash Retained (M)8.748.748.74
(-) Cash Required (M)-8.27-5.17-3.10
(=) Excess Retained (M)0.473.575.64
(/) Shares Outstanding (M)105.72105.72105.72
(=) Excess Retained per Share0.000.030.05
LTM Dividend per Share0.310.310.31
(+) Excess Retained per Share0.000.030.05
(=) Adjusted Dividend0.310.340.36
WACC / Discount Rate7.65%7.65%7.65%
Growth Rate5.50%6.50%7.50%
Fair Value$15.34$31.66$77.74
Upside / Downside-39.21%25.45%208.01%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)41.3344.0146.8749.9253.1656.6258.32
Payout Ratio78.86%81.09%83.32%85.54%87.77%90.00%92.50%
Projected Dividends (M)32.5935.6939.0542.7046.6650.9653.95

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.65%7.65%7.65%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)32.8433.1533.46
Year 2 PV (M)33.0733.7034.33
Year 3 PV (M)33.2834.2335.20
Year 4 PV (M)33.4634.7536.07
Year 5 PV (M)33.6235.2536.93
PV of Terminal Value (M)765.41802.38840.76
Equity Value (M)931.68973.451,016.77
Shares Outstanding (M)105.72105.72105.72
Fair Value$8.81$9.21$9.62
Upside / Downside-65.08%-63.52%-61.90%

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