Definitive Analysis
Definitive Analysis

Financial Statements

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Hengdian Group DMEGC Magnetics Co. ,Ltd (002056.SZ)

Company Dividend Discount ModelIndustry: Consumer ElectronicsSector: Technology

Valuation Snapshot

Stable Growth$139.86 - $292.74$274.34
Multi-Stage$44.44 - $48.66$46.51
Blended Fair Value$160.43
Current Price$20.49
Upside682.95%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS21.47%23.34%0.410.390.260.240.160.150.110.060.070.09
YoY Growth--4.20%50.23%9.64%46.58%5.13%34.98%81.09%-15.17%-21.66%89.64%
Dividend Yield--2.64%2.62%1.26%1.74%1.06%1.53%1.55%0.65%0.93%1.58%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)2,352.92
(-) Cash Dividends Paid (M)727.50
(=) Cash Retained (M)1,625.42
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)470.58294.12176.47
Cash Retained (M)1,625.421,625.421,625.42
(-) Cash Required (M)-470.58-294.12-176.47
(=) Excess Retained (M)1,154.841,331.311,448.95
(/) Shares Outstanding (M)1,598.451,598.451,598.45
(=) Excess Retained per Share0.720.830.91
LTM Dividend per Share0.460.460.46
(+) Excess Retained per Share0.720.830.91
(=) Adjusted Dividend1.181.291.36
WACC / Discount Rate6.39%6.39%6.39%
Growth Rate5.50%6.50%7.50%
Fair Value$139.86$274.34$292.74
Upside / Downside582.56%1,238.92%1,328.72%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)2,352.922,505.862,668.752,842.213,026.963,223.713,320.42
Payout Ratio30.92%42.74%54.55%66.37%78.18%90.00%92.50%
Projected Dividends (M)727.501,070.891,455.841,886.312,366.592,901.343,071.39

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.39%6.39%6.39%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)997.131,006.581,016.03
Year 2 PV (M)1,262.211,286.251,310.52
Year 3 PV (M)1,522.791,566.501,611.05
Year 4 PV (M)1,778.931,847.341,917.71
Year 5 PV (M)2,030.692,128.772,230.61
PV of Terminal Value (M)63,444.6866,509.0869,690.77
Equity Value (M)71,036.4374,344.5377,776.68
Shares Outstanding (M)1,598.451,598.451,598.45
Fair Value$44.44$46.51$48.66
Upside / Downside116.89%126.99%137.47%

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