Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Zhejiang Xinhua Chemical Co.,Ltd (603867.SS)

Company Dividend Discount ModelIndustry: ChemicalsSector: Basic Materials

Valuation Snapshot

Stable Growth$192.09 - $226.31$212.09
Multi-Stage$421.27 - $462.49$441.49
Blended Fair Value$326.79
Current Price$33.20
Upside884.31%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS21.63%12.01%0.580.530.420.340.210.220.180.160.120.14
YoY Growth--9.38%26.72%22.66%64.15%-4.63%20.62%11.58%37.85%-18.33%-22.89%
Dividend Yield--2.26%1.91%1.17%1.43%1.17%0.88%1.00%0.90%0.65%0.80%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)231.70
(-) Cash Dividends Paid (M)90.01
(=) Cash Retained (M)141.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)46.3428.9617.38
Cash Retained (M)141.70141.70141.70
(-) Cash Required (M)-46.34-28.96-17.38
(=) Excess Retained (M)95.36112.74124.32
(/) Shares Outstanding (M)203.61203.61203.61
(=) Excess Retained per Share0.470.550.61
LTM Dividend per Share0.440.440.44
(+) Excess Retained per Share0.470.550.61
(=) Adjusted Dividend0.911.001.05
WACC / Discount Rate-19.19%-19.19%-19.19%
Growth Rate5.50%6.50%7.50%
Fair Value$192.09$212.09$226.31
Upside / Downside478.58%538.83%581.67%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)231.70246.77262.81279.89298.08317.46326.98
Payout Ratio38.85%49.08%59.31%69.54%79.77%90.00%92.50%
Projected Dividends (M)90.01121.10155.86194.63237.78285.71302.46

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate-19.19%-19.19%-19.19%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)148.45149.85151.26
Year 2 PV (M)234.20238.66243.16
Year 3 PV (M)358.48368.77379.25
Year 4 PV (M)536.84557.48578.72
Year 5 PV (M)790.71828.90868.56
PV of Terminal Value (M)83,705.7187,748.7291,946.48
Equity Value (M)85,774.3889,892.3994,167.43
Shares Outstanding (M)203.61203.61203.61
Fair Value$421.27$441.49$462.49
Upside / Downside1,168.87%1,229.79%1,293.03%

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