Definitive Analysis
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Hap Seng Consolidated Berhad (3034.KL)

Company Dividend Discount ModelIndustry: ConglomeratesSector: Industrials

Valuation Snapshot

Stable Growth$1.37 - $1.92$1.65
Multi-Stage$4.27 - $4.71$4.48
Blended Fair Value$3.07
Current Price$2.53
Upside21.18%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-8.56%-2.03%0.220.250.300.350.250.350.350.350.340.26
YoY Growth---10.51%-16.67%-14.29%40.00%-28.57%0.00%0.00%1.59%32.79%-5.57%
Dividend Yield--8.16%5.58%5.88%4.68%2.99%4.59%3.57%3.55%3.83%3.45%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)588.43
(-) Cash Dividends Paid (M)528.73
(=) Cash Retained (M)59.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)117.6973.5544.13
Cash Retained (M)59.7059.7059.70
(-) Cash Required (M)-117.69-73.55-44.13
(=) Excess Retained (M)-57.98-13.8515.57
(/) Shares Outstanding (M)2,489.672,489.672,489.67
(=) Excess Retained per Share-0.02-0.010.01
LTM Dividend per Share0.210.210.21
(+) Excess Retained per Share-0.02-0.010.01
(=) Adjusted Dividend0.190.210.22
WACC / Discount Rate6.34%6.34%6.34%
Growth Rate-6.52%-5.52%-4.52%
Fair Value$1.37$1.65$1.92
Upside / Downside-45.69%-34.90%-24.05%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)588.43555.94525.25496.25468.86442.97456.26
Payout Ratio89.85%89.88%89.91%89.94%89.97%90.00%92.50%
Projected Dividends (M)528.73499.70472.27446.34421.83398.68422.04

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.34%6.34%6.34%
Growth Rate-6.52%-5.52%-4.52%
Year 1 PV (M)464.92469.89474.87
Year 2 PV (M)408.82417.61426.50
Year 3 PV (M)359.48371.14383.05
Year 4 PV (M)316.10329.84344.03
Year 5 PV (M)277.95293.14308.99
PV of Terminal Value (M)8,802.369,283.369,785.16
Equity Value (M)10,629.6311,164.9911,722.60
Shares Outstanding (M)2,489.672,489.672,489.67
Fair Value$4.27$4.48$4.71
Upside / Downside68.75%77.25%86.11%

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