Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

Zhejiang Renzhi Co., Ltd. (002629.SZ)

Company Dividend Discount ModelIndustry: Oil & Gas Equipment & ServicesSector: Energy

Valuation Snapshot

Stable Growth$0.05 - $0.07$0.06
Multi-Stage$0.10 - $0.11$0.10
Blended Fair Value$0.08
Current Price$7.96
Upside-98.99%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%-35.23%0.000.000.010.020.000.000.010.010.000.01
YoY Growth---43.32%-96.58%-58.09%309.46%0.00%-100.00%67.30%0.00%-100.00%6.68%
Dividend Yield--0.00%0.01%0.22%0.53%0.23%0.00%0.23%0.09%0.00%0.10%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3.58
(-) Cash Dividends Paid (M)0.16
(=) Cash Retained (M)3.41
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)0.720.450.27
Cash Retained (M)3.413.413.41
(-) Cash Required (M)-0.72-0.45-0.27
(=) Excess Retained (M)2.702.973.15
(/) Shares Outstanding (M)420.19420.19420.19
(=) Excess Retained per Share0.010.010.01
LTM Dividend per Share0.000.000.00
(+) Excess Retained per Share0.010.010.01
(=) Adjusted Dividend0.010.010.01
WACC / Discount Rate8.13%8.13%8.13%
Growth Rate-5.04%-4.04%-3.04%
Fair Value$0.05$0.06$0.07
Upside / Downside-99.38%-99.26%-99.14%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3.583.433.303.163.032.913.00
Payout Ratio4.58%21.66%38.75%55.83%72.92%90.00%92.50%
Projected Dividends (M)0.160.741.281.772.212.622.77

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.13%8.13%8.13%
Growth Rate-5.04%-4.04%-3.04%
Year 1 PV (M)0.680.690.70
Year 2 PV (M)1.071.091.11
Year 3 PV (M)1.351.401.44
Year 4 PV (M)1.551.621.69
Year 5 PV (M)1.681.771.87
PV of Terminal Value (M)34.7036.5638.51
Equity Value (M)41.0443.1345.31
Shares Outstanding (M)420.19420.19420.19
Fair Value$0.10$0.10$0.11
Upside / Downside-98.77%-98.71%-98.65%

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