Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Shanghai GenTech Co., Ltd. (688596.SS)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$79.27 - $194.14$181.94
Multi-Stage$28.32 - $30.99$29.63
Blended Fair Value$105.78
Current Price$43.37
Upside143.91%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS56.35%54.23%0.380.090.170.100.020.040.090.020.000.01
YoY Growth--321.96%-47.29%79.93%292.30%-40.49%-51.72%415.95%323.59%-63.14%109.53%
Dividend Yield--0.98%0.24%0.49%0.49%0.16%0.12%0.26%0.00%0.01%0.03%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)267.40
(-) Cash Dividends Paid (M)105.24
(=) Cash Retained (M)162.16
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)53.4833.4220.05
Cash Retained (M)162.16162.16162.16
(-) Cash Required (M)-53.48-33.42-20.05
(=) Excess Retained (M)108.68128.73142.10
(/) Shares Outstanding (M)273.92273.92273.92
(=) Excess Retained per Share0.400.470.52
LTM Dividend per Share0.380.380.38
(+) Excess Retained per Share0.400.470.52
(=) Adjusted Dividend0.780.850.90
WACC / Discount Rate6.54%6.54%6.54%
Growth Rate5.50%6.50%7.50%
Fair Value$79.27$181.94$194.14
Upside / Downside82.77%319.50%347.63%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)267.40284.78303.29323.00344.00366.36377.35
Payout Ratio39.36%49.49%59.61%69.74%79.87%90.00%92.50%
Projected Dividends (M)105.24140.93180.80225.27274.76329.72349.05

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.54%6.54%6.54%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)131.03132.28133.52
Year 2 PV (M)156.31159.29162.30
Year 3 PV (M)181.09186.28191.58
Year 4 PV (M)205.36213.26221.38
Year 5 PV (M)229.15240.21251.70
PV of Terminal Value (M)6,853.637,184.667,528.37
Equity Value (M)7,756.578,115.998,488.85
Shares Outstanding (M)273.92273.92273.92
Fair Value$28.32$29.63$30.99
Upside / Downside-34.71%-31.68%-28.55%

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