Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Guangzhou Huayan Precision Machinery Co.,Ltd. (301138.SZ)

Company Dividend Discount ModelIndustry: Manufacturing - Metal FabricationSector: Industrials

Valuation Snapshot

Stable Growth$165.52 - $195.02$182.76
Multi-Stage$39.32 - $43.12$41.18
Blended Fair Value$111.97
Current Price$35.98
Upside211.20%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR20242023202220212020201920182017
DPS14.79%0.00%0.501.000.600.000.210.250.140.360.000.00
YoY Growth---50.00%66.67%0.00%-100.00%-16.96%79.45%-61.08%0.00%0.00%0.00%
Dividend Yield--1.74%3.61%2.29%0.00%0.26%0.31%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)118.03
(-) Cash Dividends Paid (M)12.00
(=) Cash Retained (M)106.03
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)23.6114.758.85
Cash Retained (M)106.03106.03106.03
(-) Cash Required (M)-23.61-14.75-8.85
(=) Excess Retained (M)82.4391.2897.18
(/) Shares Outstanding (M)120.00120.00120.00
(=) Excess Retained per Share0.690.760.81
LTM Dividend per Share0.100.100.10
(+) Excess Retained per Share0.690.760.81
(=) Adjusted Dividend0.790.860.91
WACC / Discount Rate5.53%5.53%5.53%
Growth Rate5.17%6.17%7.17%
Fair Value$165.52$182.76$195.02
Upside / Downside360.02%407.94%442.02%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)118.03125.32133.05141.26149.98159.24164.02
Payout Ratio10.17%26.13%42.10%58.07%74.03%90.00%92.50%
Projected Dividends (M)12.0032.7556.0182.03111.04143.31151.71

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.53%5.53%5.53%
Growth Rate5.17%6.17%7.17%
Year 1 PV (M)30.7431.0331.33
Year 2 PV (M)49.3650.3051.25
Year 3 PV (M)67.8569.8171.80
Year 4 PV (M)86.2289.5592.97
Year 5 PV (M)104.46109.52114.78
PV of Terminal Value (M)4,379.444,591.644,811.99
Equity Value (M)4,718.074,941.855,174.11
Shares Outstanding (M)120.00120.00120.00
Fair Value$39.32$41.18$43.12
Upside / Downside9.28%14.46%19.84%

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