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FSE Lifestyle Services Limited (0331.HK)

Company Dividend Discount ModelIndustry: Engineering & ConstructionSector: Industrials

Valuation Snapshot

Stable Growth$19.70 - $30.51$24.71
Multi-Stage$44.58 - $49.10$46.80
Blended Fair Value$35.75
Current Price$5.70
Upside527.24%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS0.00%0.00%0.000.440.490.370.600.290.360.350.280.05
YoY Growth---100.00%-10.08%31.35%-37.84%105.80%-18.78%2.35%24.64%458.22%-92.53%
Dividend Yield--0.00%7.78%8.06%7.18%9.52%9.27%10.89%12.79%11.78%2.42%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)950.05
(-) Cash Dividends Paid (M)301.40
(=) Cash Retained (M)648.65
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)190.01118.7671.25
Cash Retained (M)648.65648.65648.65
(-) Cash Required (M)-190.01-118.76-71.25
(=) Excess Retained (M)458.64529.89577.39
(/) Shares Outstanding (M)450.00450.00450.00
(=) Excess Retained per Share1.021.181.28
LTM Dividend per Share0.670.670.67
(+) Excess Retained per Share1.021.181.28
(=) Adjusted Dividend1.691.851.95
WACC / Discount Rate6.40%6.40%6.40%
Growth Rate-2.00%-1.00%0.00%
Fair Value$19.70$24.71$30.51
Upside / Downside245.64%333.51%435.22%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)950.05940.55931.15921.83912.62903.49930.59
Payout Ratio31.73%43.38%55.04%66.69%78.35%90.00%92.50%
Projected Dividends (M)301.40408.01512.46614.77714.99813.14860.80

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.40%6.40%6.40%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)379.59383.46387.34
Year 2 PV (M)443.55452.65461.84
Year 3 PV (M)495.05510.36525.98
Year 4 PV (M)535.64557.84580.73
Year 5 PV (M)566.74596.25626.98
PV of Terminal Value (M)17,639.0818,557.5919,513.97
Equity Value (M)20,059.6521,058.1622,096.83
Shares Outstanding (M)450.00450.00450.00
Fair Value$44.58$46.80$49.10
Upside / Downside682.05%720.98%761.47%

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