Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Qingdao Daneng Environmental Protection Equipment Co., Ltd. (688501.SS)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$132.44 - $295.74$277.15
Multi-Stage$43.44 - $47.59$45.48
Blended Fair Value$161.31
Current Price$28.50
Upside466.01%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020201920182017
DPS42.49%0.00%0.390.180.230.090.090.070.060.060.000.00
YoY Growth--114.05%-22.41%156.39%0.56%37.19%4.44%-1.28%0.00%0.00%0.00%
Dividend Yield--1.98%1.10%1.31%0.69%0.47%0.34%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)183.31
(-) Cash Dividends Paid (M)15.87
(=) Cash Retained (M)167.44
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)36.6622.9113.75
Cash Retained (M)167.44167.44167.44
(-) Cash Required (M)-36.66-22.91-13.75
(=) Excess Retained (M)130.78144.52153.69
(/) Shares Outstanding (M)123.27123.27123.27
(=) Excess Retained per Share1.061.171.25
LTM Dividend per Share0.130.130.13
(+) Excess Retained per Share1.061.171.25
(=) Adjusted Dividend1.191.301.38
WACC / Discount Rate6.45%6.45%6.45%
Growth Rate5.50%6.50%7.50%
Fair Value$132.44$277.15$295.74
Upside / Downside364.70%872.46%937.68%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)183.31195.22207.91221.42235.82251.14258.68
Payout Ratio8.66%24.93%41.19%57.46%73.73%90.00%92.50%
Projected Dividends (M)15.8748.6685.65127.24173.87226.03239.28

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.45%6.45%6.45%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)45.2845.7146.14
Year 2 PV (M)74.1775.5977.01
Year 3 PV (M)102.54105.49108.49
Year 4 PV (M)130.40135.42140.58
Year 5 PV (M)157.76165.38173.29
PV of Terminal Value (M)4,844.085,078.055,320.97
Equity Value (M)5,354.245,605.635,866.48
Shares Outstanding (M)123.27123.27123.27
Fair Value$43.44$45.48$47.59
Upside / Downside52.41%59.56%66.99%

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