Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Guangdong Xinbao Electrical Appliances Holdings Co., Ltd (002705.SZ)

Company Dividend Discount ModelIndustry: Furnishings, Fixtures & AppliancesSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$231.19 - $272.38$255.26
Multi-Stage$84.94 - $93.19$88.99
Blended Fair Value$172.13
Current Price$15.72
Upside994.95%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.13%13.98%0.400.410.200.610.400.350.300.270.160.14
YoY Growth---0.59%101.88%-67.13%54.73%14.29%14.95%11.43%65.16%20.00%25.00%
Dividend Yield--2.50%2.33%1.18%3.67%1.13%1.86%2.14%2.29%1.09%1.24%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,108.83
(-) Cash Dividends Paid (M)132.50
(=) Cash Retained (M)976.33
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)221.77138.6083.16
Cash Retained (M)976.33976.33976.33
(-) Cash Required (M)-221.77-138.60-83.16
(=) Excess Retained (M)754.56837.72893.16
(/) Shares Outstanding (M)809.58809.58809.58
(=) Excess Retained per Share0.931.031.10
LTM Dividend per Share0.160.160.16
(+) Excess Retained per Share0.931.031.10
(=) Adjusted Dividend1.101.201.27
WACC / Discount Rate4.68%4.68%4.68%
Growth Rate5.50%6.50%7.50%
Fair Value$231.19$255.26$272.38
Upside / Downside1,370.69%1,523.82%1,632.73%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,108.831,180.901,257.661,339.411,426.471,519.191,564.77
Payout Ratio11.95%27.56%43.17%58.78%74.39%90.00%92.50%
Projected Dividends (M)132.50325.45542.93787.301,061.151,367.271,447.41

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate4.68%4.68%4.68%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)307.99310.91313.82
Year 2 PV (M)486.21495.48504.82
Year 3 PV (M)667.22686.37705.89
Year 4 PV (M)851.03883.76917.43
Year 5 PV (M)1,037.691,087.811,139.85
PV of Terminal Value (M)65,419.3768,579.1571,859.86
Equity Value (M)68,769.5172,043.4875,441.68
Shares Outstanding (M)809.58809.58809.58
Fair Value$84.94$88.99$93.19
Upside / Downside440.36%466.08%492.78%

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