Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Caihong Display Devices Co.,Ltd. (600707.SS)

Company Dividend Discount ModelIndustry: Hardware, Equipment & PartsSector: Technology

Valuation Snapshot

Stable Growth$2.82 - $8.64$4.50
Multi-Stage$1.94 - $2.12$2.03
Blended Fair Value$3.27
Current Price$5.89
Upside-44.55%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-8.98%0.01%0.120.170.190.180.200.190.140.060.040.05
YoY Growth---28.47%-12.40%7.74%-13.29%6.73%34.74%127.45%43.83%-5.28%-61.63%
Dividend Yield--1.56%2.07%3.81%3.07%1.82%4.98%2.20%0.72%0.53%0.57%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)390.18
(-) Cash Dividends Paid (M)252.73
(=) Cash Retained (M)137.45
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)78.0448.7729.26
Cash Retained (M)137.45137.45137.45
(-) Cash Required (M)-78.04-48.77-29.26
(=) Excess Retained (M)59.4288.68108.19
(/) Shares Outstanding (M)3,588.393,588.393,588.39
(=) Excess Retained per Share0.020.020.03
LTM Dividend per Share0.070.070.07
(+) Excess Retained per Share0.020.020.03
(=) Adjusted Dividend0.090.100.10
WACC / Discount Rate8.75%8.75%8.75%
Growth Rate5.50%6.50%7.50%
Fair Value$2.82$4.50$8.64
Upside / Downside-52.07%-23.57%46.77%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)390.18415.54442.55471.32501.95534.58550.61
Payout Ratio64.77%69.82%74.86%79.91%84.95%90.00%92.50%
Projected Dividends (M)252.73290.12331.31376.62426.43481.12509.32

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.75%8.75%8.75%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)264.27266.77269.28
Year 2 PV (M)274.90280.13285.42
Year 3 PV (M)284.65292.83301.15
Year 4 PV (M)293.58304.87316.49
Year 5 PV (M)301.72316.30331.43
PV of Terminal Value (M)5,554.185,822.456,100.99
Equity Value (M)6,973.317,283.357,604.75
Shares Outstanding (M)3,588.393,588.393,588.39
Fair Value$1.94$2.03$2.12
Upside / Downside-67.01%-65.54%-64.02%

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