Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Zhejiang Huahai Pharmaceutical Co., Ltd. (600521.SS)

Company Dividend Discount ModelIndustry: Drug Manufacturers - Specialty & GenericSector: Healthcare

Valuation Snapshot

Stable Growth$54.13 - $63.78$59.77
Multi-Stage$16.97 - $18.61$17.77
Blended Fair Value$38.77
Current Price$21.19
Upside82.97%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS17.88%11.71%0.330.380.100.200.270.140.140.130.110.08
YoY Growth---14.50%277.51%-49.37%-25.94%88.07%0.22%11.13%18.24%34.56%-24.94%
Dividend Yield--2.09%2.89%0.50%0.95%1.05%0.61%0.99%0.52%0.65%0.53%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)468.07
(-) Cash Dividends Paid (M)131.28
(=) Cash Retained (M)336.79
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)93.6158.5135.11
Cash Retained (M)336.79336.79336.79
(-) Cash Required (M)-93.61-58.51-35.11
(=) Excess Retained (M)243.18278.28301.69
(/) Shares Outstanding (M)1,459.601,459.601,459.60
(=) Excess Retained per Share0.170.190.21
LTM Dividend per Share0.090.090.09
(+) Excess Retained per Share0.170.190.21
(=) Adjusted Dividend0.260.280.30
WACC / Discount Rate4.97%4.97%4.97%
Growth Rate5.50%6.50%7.50%
Fair Value$54.13$59.77$63.78
Upside / Downside155.46%182.05%200.97%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)468.07498.49530.90565.40602.16641.30660.53
Payout Ratio28.05%40.44%52.83%65.22%77.61%90.00%92.50%
Projected Dividends (M)131.28201.58280.46368.75467.33577.17610.99

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate4.97%4.97%4.97%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)190.23192.03193.84
Year 2 PV (M)249.78254.53259.34
Year 3 PV (M)309.92318.81327.88
Year 4 PV (M)370.66384.92399.58
Year 5 PV (M)432.01452.88474.54
PV of Terminal Value (M)23,218.1924,339.6425,504.00
Equity Value (M)24,770.7825,942.8127,159.18
Shares Outstanding (M)1,459.601,459.601,459.60
Fair Value$16.97$17.77$18.61
Upside / Downside-19.91%-16.12%-12.19%

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