Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Suzhou Veichi Electric Co., Ltd. (688698.SS)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$207.46 - $244.42$229.06
Multi-Stage$145.68 - $159.87$152.64
Blended Fair Value$190.85
Current Price$95.35
Upside100.16%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020201920182017
DPS101.56%0.00%0.420.210.150.100.040.010.130.020.000.00
YoY Growth--97.31%41.90%43.69%133.55%254.03%-90.53%591.89%0.00%0.00%0.00%
Dividend Yield--0.79%0.77%0.63%0.56%0.26%0.06%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)259.20
(-) Cash Dividends Paid (M)86.85
(=) Cash Retained (M)172.35
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)51.8432.4019.44
Cash Retained (M)172.35172.35172.35
(-) Cash Required (M)-51.84-32.40-19.44
(=) Excess Retained (M)120.51139.95152.91
(/) Shares Outstanding (M)210.90210.90210.90
(=) Excess Retained per Share0.570.660.73
LTM Dividend per Share0.410.410.41
(+) Excess Retained per Share0.570.660.73
(=) Adjusted Dividend0.981.081.14
WACC / Discount Rate1.65%1.65%1.65%
Growth Rate5.50%6.50%7.50%
Fair Value$207.46$229.06$244.42
Upside / Downside117.57%140.23%156.34%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)259.20276.05293.99313.10333.45355.13365.78
Payout Ratio33.51%44.81%56.10%67.40%78.70%90.00%92.50%
Projected Dividends (M)86.85123.68164.94211.04262.43319.62338.35

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate1.65%1.65%1.65%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)120.53121.67122.81
Year 2 PV (M)156.63159.62162.63
Year 3 PV (M)195.30200.91206.62
Year 4 PV (M)236.67245.77255.13
Year 5 PV (M)280.88294.45308.54
PV of Terminal Value (M)29,734.6031,170.7932,661.95
Equity Value (M)30,724.6132,193.2033,717.67
Shares Outstanding (M)210.90210.90210.90
Fair Value$145.68$152.64$159.87
Upside / Downside52.78%60.09%67.67%

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