Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Li Kang Biomedical Co., Ltd. (6242.TWO)

Company Dividend Discount ModelIndustry: Household & Personal ProductsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$25.07 - $38.89$31.47
Multi-Stage$34.03 - $37.15$35.56
Blended Fair Value$33.51
Current Price$40.50
Upside-17.25%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS7.46%0.00%2.501.471.051.961.401.750.000.000.000.00
YoY Growth--70.56%40.00%-46.43%40.00%-20.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--5.83%2.71%2.02%6.15%4.20%7.17%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)82.04
(-) Cash Dividends Paid (M)63.61
(=) Cash Retained (M)18.43
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)16.4110.256.15
Cash Retained (M)18.4318.4318.43
(-) Cash Required (M)-16.41-10.25-6.15
(=) Excess Retained (M)2.028.1712.27
(/) Shares Outstanding (M)31.7831.7831.78
(=) Excess Retained per Share0.060.260.39
LTM Dividend per Share2.002.002.00
(+) Excess Retained per Share0.060.260.39
(=) Adjusted Dividend2.062.262.39
WACC / Discount Rate9.53%9.53%9.53%
Growth Rate1.19%2.19%3.19%
Fair Value$25.07$31.47$38.89
Upside / Downside-38.10%-22.30%-3.97%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)82.0483.8485.6787.5589.4791.4394.18
Payout Ratio77.54%80.03%82.52%85.02%87.51%90.00%92.50%
Projected Dividends (M)63.6167.1070.7074.4378.3082.2987.11

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.53%9.53%9.53%
Growth Rate1.19%2.19%3.19%
Year 1 PV (M)60.6661.2661.86
Year 2 PV (M)57.7958.9460.10
Year 3 PV (M)55.0056.6558.33
Year 4 PV (M)52.3154.4156.57
Year 5 PV (M)49.7052.2154.81
PV of Terminal Value (M)806.16846.79889.04
Equity Value (M)1,081.631,130.251,180.71
Shares Outstanding (M)31.7831.7831.78
Fair Value$34.03$35.56$37.15
Upside / Downside-15.97%-12.19%-8.27%

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