Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

GCH Technology Co., Ltd. (688625.SS)

Company Dividend Discount ModelIndustry: Chemicals - SpecialtySector: Basic Materials

Valuation Snapshot

Stable Growth$339.17 - $399.60$374.49
Multi-Stage$90.10 - $98.74$94.34
Blended Fair Value$234.41
Current Price$30.58
Upside666.56%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS39.20%69.37%0.900.760.530.300.320.170.030.230.020.15
YoY Growth--18.84%42.42%77.69%-5.69%84.29%451.66%-86.44%1,088.14%-87.12%3,145.22%
Dividend Yield--3.01%3.13%1.63%1.06%1.10%0.59%0.00%0.00%0.07%0.52%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)269.74
(-) Cash Dividends Paid (M)96.21
(=) Cash Retained (M)173.53
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)53.9533.7220.23
Cash Retained (M)173.53173.53173.53
(-) Cash Required (M)-53.95-33.72-20.23
(=) Excess Retained (M)119.58139.81153.30
(/) Shares Outstanding (M)134.25134.25134.25
(=) Excess Retained per Share0.891.041.14
LTM Dividend per Share0.720.720.72
(+) Excess Retained per Share0.891.041.14
(=) Adjusted Dividend1.611.761.86
WACC / Discount Rate5.32%5.32%5.32%
Growth Rate5.50%6.50%7.50%
Fair Value$339.17$374.49$399.60
Upside / Downside1,009.14%1,124.62%1,206.75%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)269.74287.28305.95325.84347.02369.57380.66
Payout Ratio35.67%46.53%57.40%68.27%79.13%90.00%92.50%
Projected Dividends (M)96.21133.68175.62222.44274.61332.62352.11

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.32%5.32%5.32%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)125.74126.93128.12
Year 2 PV (M)155.36158.32161.31
Year 3 PV (M)185.09190.40195.82
Year 4 PV (M)214.92223.18231.68
Year 5 PV (M)244.84256.67268.95
PV of Terminal Value (M)11,169.5611,709.0612,269.20
Equity Value (M)12,095.5212,664.5713,255.08
Shares Outstanding (M)134.25134.25134.25
Fair Value$90.10$94.34$98.74
Upside / Downside194.64%208.50%222.88%

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