Definitive Analysis
Definitive Analysis

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Guangzhou Guangri Stock Co.,Ltd. (600894.SS)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$17.20 - $43.59$25.93
Multi-Stage$20.87 - $22.84$21.84
Blended Fair Value$23.88
Current Price$9.89
Upside141.47%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS87.27%33.54%1.310.180.240.410.160.060.150.410.790.20
YoY Growth--612.04%-21.95%-42.14%163.18%172.23%-60.82%-64.86%-47.44%299.53%170.85%
Dividend Yield--10.92%2.02%3.20%5.33%1.80%0.78%1.98%4.71%5.86%1.25%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)664.44
(-) Cash Dividends Paid (M)651.60
(=) Cash Retained (M)12.84
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)132.8983.0549.83
Cash Retained (M)12.8412.8412.84
(-) Cash Required (M)-132.89-83.05-49.83
(=) Excess Retained (M)-120.05-70.22-37.00
(/) Shares Outstanding (M)850.06850.06850.06
(=) Excess Retained per Share-0.14-0.08-0.04
LTM Dividend per Share0.770.770.77
(+) Excess Retained per Share-0.14-0.08-0.04
(=) Adjusted Dividend0.630.680.72
WACC / Discount Rate6.54%6.54%6.54%
Growth Rate2.80%3.80%4.80%
Fair Value$17.20$25.93$43.59
Upside / Downside73.87%162.13%340.72%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)664.44689.70715.93743.16771.42800.75824.77
Payout Ratio98.07%96.45%94.84%93.23%91.61%90.00%92.50%
Projected Dividends (M)651.60665.25678.99692.82706.72720.68762.92

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.54%6.54%6.54%
Growth Rate2.80%3.80%4.80%
Year 1 PV (M)618.39624.41630.42
Year 2 PV (M)586.71598.18609.76
Year 3 PV (M)556.49572.89589.61
Year 4 PV (M)527.67548.50569.95
Year 5 PV (M)500.19524.99550.77
PV of Terminal Value (M)14,953.0315,694.5816,465.27
Equity Value (M)17,742.4818,563.5619,415.78
Shares Outstanding (M)850.06850.06850.06
Fair Value$20.87$21.84$22.84
Upside / Downside111.04%120.81%130.94%

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