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Li Ming Development Construction Co., Ltd. (6212.TWO)

Company Dividend Discount ModelIndustry: Real Estate - DevelopmentSector: Real Estate

Valuation Snapshot

Stable Growth$116.73 - $228.02$160.80
Multi-Stage$193.96 - $213.03$203.31
Blended Fair Value$182.06
Current Price$43.30
Upside320.46%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS3.13%0.00%3.480.000.002.990.002.990.000.000.000.00
YoY Growth--0.00%0.00%-100.00%0.00%-100.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--6.58%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)746.12
(-) Cash Dividends Paid (M)357.00
(=) Cash Retained (M)389.12
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)149.2293.2655.96
Cash Retained (M)389.12389.12389.12
(-) Cash Required (M)-149.22-93.26-55.96
(=) Excess Retained (M)239.89295.85333.16
(/) Shares Outstanding (M)102.50102.50102.50
(=) Excess Retained per Share2.342.893.25
LTM Dividend per Share3.483.483.48
(+) Excess Retained per Share2.342.893.25
(=) Adjusted Dividend5.826.376.73
WACC / Discount Rate6.18%6.18%6.18%
Growth Rate1.13%2.13%3.13%
Fair Value$116.73$160.80$228.02
Upside / Downside169.57%271.37%426.62%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)746.12762.02778.26794.84811.78829.08853.95
Payout Ratio47.85%56.28%64.71%73.14%81.57%90.00%92.50%
Projected Dividends (M)357.00428.85503.60581.34662.16746.17789.90

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.18%6.18%6.18%
Growth Rate1.13%2.13%3.13%
Year 1 PV (M)399.95403.90407.86
Year 2 PV (M)438.01446.71455.50
Year 3 PV (M)471.55485.68500.08
Year 4 PV (M)500.91521.02541.73
Year 5 PV (M)526.42552.97580.57
PV of Terminal Value (M)17,544.8018,429.5519,349.65
Equity Value (M)19,881.6420,839.8421,835.40
Shares Outstanding (M)102.50102.50102.50
Fair Value$193.96$203.31$213.03
Upside / Downside347.95%369.54%391.98%

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