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Transport International Holdings Limited (0062.HK)

Company Dividend Discount ModelIndustry: RailroadsSector: Industrials

Valuation Snapshot

Stable Growth$8.37 - $11.93$10.12
Multi-Stage$23.43 - $25.86$24.62
Blended Fair Value$17.37
Current Price$8.84
Upside96.50%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-14.94%-7.07%0.230.380.230.220.300.520.470.490.670.84
YoY Growth---38.96%62.96%6.83%-26.66%-42.86%10.46%-3.47%-27.02%-20.82%75.00%
Dividend Yield--2.81%4.03%2.05%1.70%1.99%2.58%2.18%1.95%3.03%4.09%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)645.25
(-) Cash Dividends Paid (M)295.22
(=) Cash Retained (M)350.02
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)129.0580.6648.39
Cash Retained (M)350.02350.02350.02
(-) Cash Required (M)-129.05-80.66-48.39
(=) Excess Retained (M)220.97269.37301.63
(/) Shares Outstanding (M)501.82501.82501.82
(=) Excess Retained per Share0.440.540.60
LTM Dividend per Share0.590.590.59
(+) Excess Retained per Share0.440.540.60
(=) Adjusted Dividend1.031.131.19
WACC / Discount Rate6.40%6.40%6.40%
Growth Rate-5.25%-4.25%-3.25%
Fair Value$8.37$10.12$11.93
Upside / Downside-5.32%14.47%34.96%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)645.25617.84591.59566.46542.40519.35534.94
Payout Ratio45.75%54.60%63.45%72.30%81.15%90.00%92.50%
Projected Dividends (M)295.22337.36375.38409.56440.16467.42494.82

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.40%6.40%6.40%
Growth Rate-5.25%-4.25%-3.25%
Year 1 PV (M)313.76317.07320.38
Year 2 PV (M)324.70331.59338.55
Year 3 PV (M)329.49340.03350.80
Year 4 PV (M)329.34343.46358.04
Year 5 PV (M)325.27342.80361.08
PV of Terminal Value (M)10,134.5710,680.7711,250.27
Equity Value (M)11,757.1312,355.7312,979.12
Shares Outstanding (M)501.82501.82501.82
Fair Value$23.43$24.62$25.86
Upside / Downside165.03%178.53%192.58%

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