Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

China Nerin Engineering Co Ltd (603257.SS)

Company Dividend Discount ModelIndustry: Engineering & ConstructionSector: Industrials

Valuation Snapshot

Stable Growth$48.61 - $235.93$104.53
Multi-Stage$114.33 - $126.28$120.19
Blended Fair Value$112.36
Current Price$63.56
Upside76.78%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS0.00%0.00%0.560.000.000.000.000.000.000.000.000.00
YoY Growth--0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.56%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)134.85
(-) Cash Dividends Paid (M)89.42
(=) Cash Retained (M)45.43
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)26.9716.8610.11
Cash Retained (M)45.4345.4345.43
(-) Cash Required (M)-26.97-16.86-10.11
(=) Excess Retained (M)18.4628.5735.32
(/) Shares Outstanding (M)105.74105.74105.74
(=) Excess Retained per Share0.170.270.33
LTM Dividend per Share0.850.850.85
(+) Excess Retained per Share0.170.270.33
(=) Adjusted Dividend1.021.121.18
WACC / Discount Rate0.06%0.06%0.06%
Growth Rate-2.00%-1.00%0.00%
Fair Value$48.61$104.53$235.93
Upside / Downside-23.52%64.46%271.19%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)134.85133.50132.16130.84129.53128.24132.08
Payout Ratio66.31%71.05%75.79%80.52%85.26%90.00%92.50%
Projected Dividends (M)89.4294.85100.16105.36110.44115.41122.18

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate0.06%0.06%0.06%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)93.8494.7995.75
Year 2 PV (M)98.04100.05102.08
Year 3 PV (M)102.02105.18108.40
Year 4 PV (M)105.81110.19114.71
Year 5 PV (M)109.39115.09121.02
PV of Terminal Value (M)11,580.1112,183.1112,810.98
Equity Value (M)12,089.2012,708.4113,352.93
Shares Outstanding (M)105.74105.74105.74
Fair Value$114.33$120.19$126.28
Upside / Downside79.88%89.09%98.68%

High-Yield Dividend Screener

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