Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

Jiangxi Guotai Group Co.,Ltd. (603977.SS)

Company Dividend Discount ModelIndustry: Chemicals - SpecialtySector: Basic Materials

Valuation Snapshot

Stable Growth$5.55 - $14.08$8.37
Multi-Stage$3.96 - $4.32$4.14
Blended Fair Value$6.25
Current Price$13.06
Upside-52.13%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS20.03%8.12%0.190.070.160.120.100.080.060.180.010.09
YoY Growth--166.28%-55.62%31.13%16.35%38.18%27.34%-67.72%1,837.10%-89.54%5.26%
Dividend Yield--1.46%0.56%1.75%1.45%1.32%1.10%0.93%2.48%0.07%1.91%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)152.21
(-) Cash Dividends Paid (M)73.50
(=) Cash Retained (M)78.71
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)30.4419.0311.42
Cash Retained (M)78.7178.7178.71
(-) Cash Required (M)-30.44-19.03-11.42
(=) Excess Retained (M)48.2759.6867.29
(/) Shares Outstanding (M)620.05620.05620.05
(=) Excess Retained per Share0.080.100.11
LTM Dividend per Share0.120.120.12
(+) Excess Retained per Share0.080.100.11
(=) Adjusted Dividend0.200.210.23
WACC / Discount Rate9.23%9.23%9.23%
Growth Rate5.50%6.50%7.50%
Fair Value$5.55$8.37$14.08
Upside / Downside-57.51%-35.92%7.83%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)152.21162.10172.64183.86195.81208.54214.80
Payout Ratio48.29%56.63%64.97%73.32%81.66%90.00%92.50%
Projected Dividends (M)73.5091.80112.17134.80159.90187.69198.69

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.23%9.23%9.23%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)83.2584.0484.83
Year 2 PV (M)92.2594.0195.78
Year 3 PV (M)100.54103.43106.37
Year 4 PV (M)108.15112.31116.59
Year 5 PV (M)115.13120.69126.46
PV of Terminal Value (M)1,955.172,049.612,147.66
Equity Value (M)2,454.502,564.092,677.69
Shares Outstanding (M)620.05620.05620.05
Fair Value$3.96$4.14$4.32
Upside / Downside-69.69%-68.34%-66.93%

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