Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

GuangDong Leary New Material Technology Co.,Ltd (688683.SS)

Company Dividend Discount ModelIndustry: ChemicalsSector: Basic Materials

Valuation Snapshot

Stable Growth$41.49 - $48.95$45.84
Multi-Stage$62.40 - $68.98$65.62
Blended Fair Value$55.73
Current Price$34.28
Upside62.58%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020201920182017
DPS-10.43%0.00%0.080.110.150.170.000.130.000.000.000.00
YoY Growth---26.70%-28.98%-10.30%11,431.78%-98.93%4,447.87%0.00%0.00%0.00%0.00%
Dividend Yield--0.36%0.59%0.67%0.75%0.01%0.76%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)40.57
(-) Cash Dividends Paid (M)11.24
(=) Cash Retained (M)29.33
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)8.115.073.04
Cash Retained (M)29.3329.3329.33
(-) Cash Required (M)-8.11-5.07-3.04
(=) Excess Retained (M)21.2124.2626.28
(/) Shares Outstanding (M)153.33153.33153.33
(=) Excess Retained per Share0.140.160.17
LTM Dividend per Share0.070.070.07
(+) Excess Retained per Share0.140.160.17
(=) Adjusted Dividend0.210.230.24
WACC / Discount Rate-17.82%-17.82%-17.82%
Growth Rate-2.00%-1.00%0.00%
Fair Value$41.49$45.84$48.95
Upside / Downside21.03%33.73%42.80%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)40.5740.1739.7639.3738.9738.5839.74
Payout Ratio27.71%40.17%52.63%65.09%77.54%90.00%92.50%
Projected Dividends (M)11.2416.1320.9325.6230.2234.7236.76

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate-17.82%-17.82%-17.82%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)19.4319.6319.83
Year 2 PV (M)30.3630.9931.61
Year 3 PV (M)44.7846.1647.58
Year 4 PV (M)63.6266.2568.97
Year 5 PV (M)88.0592.6397.41
PV of Terminal Value (M)9,320.999,806.3510,311.73
Equity Value (M)9,567.2310,062.0210,577.13
Shares Outstanding (M)153.33153.33153.33
Fair Value$62.40$65.62$68.98
Upside / Downside82.02%91.44%101.24%

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