Definitive Analysis
Definitive Analysis

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China Longyuan Power Group Corporation Limited (0916.HK)

Company Dividend Discount ModelIndustry: Renewable UtilitiesSector: Utilities

Valuation Snapshot

Stable Growth$60.10 - $140.19$131.38
Multi-Stage$21.57 - $23.57$22.55
Blended Fair Value$76.97
Current Price$6.45
Upside1,093.27%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS47.63%30.59%0.660.140.180.110.100.090.090.080.070.06
YoY Growth--367.47%-19.74%55.28%9.29%10.13%6.43%8.00%18.55%20.10%25.68%
Dividend Yield--11.34%2.70%2.24%0.78%1.16%2.41%1.87%1.70%1.29%1.20%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)5,892.80
(-) Cash Dividends Paid (M)5,823.08
(=) Cash Retained (M)69.72
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,178.56736.60441.96
Cash Retained (M)69.7269.7269.72
(-) Cash Required (M)-1,178.56-736.60-441.96
(=) Excess Retained (M)-1,108.84-666.88-372.24
(/) Shares Outstanding (M)8,359.428,359.428,359.42
(=) Excess Retained per Share-0.13-0.08-0.04
LTM Dividend per Share0.700.700.70
(+) Excess Retained per Share-0.13-0.08-0.04
(=) Adjusted Dividend0.560.620.65
WACC / Discount Rate6.49%6.49%6.49%
Growth Rate5.50%6.50%7.50%
Fair Value$60.10$131.38$140.19
Upside / Downside831.81%1,936.92%2,073.53%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)5,892.806,275.846,683.777,118.217,580.908,073.658,315.86
Payout Ratio98.82%97.05%95.29%93.53%91.76%90.00%92.50%
Projected Dividends (M)5,823.086,090.926,368.976,657.436,956.487,266.297,692.17

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.49%6.49%6.49%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)5,666.005,719.715,773.42
Year 2 PV (M)5,511.355,616.325,722.29
Year 3 PV (M)5,359.075,512.915,669.67
Year 4 PV (M)5,209.155,409.485,615.54
Year 5 PV (M)5,061.565,306.035,559.87
PV of Terminal Value (M)153,534.02160,949.77168,649.34
Equity Value (M)180,341.16188,514.23196,990.12
Shares Outstanding (M)8,359.428,359.428,359.42
Fair Value$21.57$22.55$23.57
Upside / Downside234.47%249.63%265.35%

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