Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Guangdong Investment Limited (0270.HK)

Company Dividend Discount ModelIndustry: Regulated WaterSector: Utilities

Valuation Snapshot

Stable Growth$16.02 - $31.88$22.22
Multi-Stage$40.96 - $45.03$42.96
Blended Fair Value$32.59
Current Price$6.56
Upside396.79%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-7.91%4.71%0.360.610.610.590.580.550.500.440.340.29
YoY Growth---40.81%0.13%2.99%2.29%6.09%9.60%12.36%29.00%20.19%25.30%
Dividend Yield--5.41%10.56%7.67%6.00%4.16%3.36%3.30%4.26%3.37%2.61%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)6,419.03
(-) Cash Dividends Paid (M)6,382.88
(=) Cash Retained (M)36.16
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,283.81802.38481.43
Cash Retained (M)36.1636.1636.16
(-) Cash Required (M)-1,283.81-802.38-481.43
(=) Excess Retained (M)-1,247.65-766.22-445.27
(/) Shares Outstanding (M)6,537.826,537.826,537.82
(=) Excess Retained per Share-0.19-0.12-0.07
LTM Dividend per Share0.980.980.98
(+) Excess Retained per Share-0.19-0.12-0.07
(=) Adjusted Dividend0.790.860.91
WACC / Discount Rate4.99%4.99%4.99%
Growth Rate0.08%1.08%2.08%
Fair Value$16.02$22.22$31.88
Upside / Downside144.18%238.77%386.05%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)6,419.036,488.676,559.076,630.236,702.176,774.886,978.13
Payout Ratio99.44%97.55%95.66%93.77%91.89%90.00%92.50%
Projected Dividends (M)6,382.886,329.666,274.546,217.486,158.446,097.396,454.77

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate4.99%4.99%4.99%
Growth Rate0.08%1.08%2.08%
Year 1 PV (M)5,969.036,028.676,088.31
Year 2 PV (M)5,579.935,691.995,805.16
Year 3 PV (M)5,214.165,372.025,533.03
Year 4 PV (M)4,870.395,067.985,271.52
Year 5 PV (M)4,547.374,779.145,020.25
PV of Terminal Value (M)241,581.58253,894.01266,703.40
Equity Value (M)267,762.47280,833.80294,421.68
Shares Outstanding (M)6,537.826,537.826,537.82
Fair Value$40.96$42.96$45.03
Upside / Downside524.33%554.81%586.49%

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