Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Guangdong Guanghong Holdings Co.,Ltd. (000529.SZ)

Company Dividend Discount ModelIndustry: Agricultural Farm ProductsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$1.42 - $2.10$1.75
Multi-Stage$2.81 - $3.08$2.95
Blended Fair Value$2.35
Current Price$5.95
Upside-60.56%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS27.96%0.00%0.240.150.150.110.100.070.070.040.000.00
YoY Growth--60.08%0.00%36.36%10.00%42.86%2.94%51.11%89,348.52%-94.91%0.00%
Dividend Yield--4.09%2.53%1.84%1.58%1.61%1.01%1.02%0.71%0.00%0.01%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)103.83
(-) Cash Dividends Paid (M)102.23
(=) Cash Retained (M)1.60
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)20.7712.987.79
Cash Retained (M)1.601.601.60
(-) Cash Required (M)-20.77-12.98-7.79
(=) Excess Retained (M)-19.16-11.38-6.18
(/) Shares Outstanding (M)584.45584.45584.45
(=) Excess Retained per Share-0.03-0.02-0.01
LTM Dividend per Share0.170.170.17
(+) Excess Retained per Share-0.03-0.02-0.01
(=) Adjusted Dividend0.140.160.16
WACC / Discount Rate7.81%7.81%7.81%
Growth Rate-2.00%-1.00%0.00%
Fair Value$1.42$1.75$2.10
Upside / Downside-76.14%-70.64%-64.64%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)103.83102.79101.77100.7599.7498.74101.71
Payout Ratio98.46%96.76%95.07%93.38%91.69%90.00%92.50%
Projected Dividends (M)102.2399.4796.7594.0891.4588.8794.08

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.81%7.81%7.81%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)91.3392.2693.19
Year 2 PV (M)81.5783.2484.93
Year 3 PV (M)72.8375.0877.38
Year 4 PV (M)65.0067.6970.47
Year 5 PV (M)57.9961.0164.16
PV of Terminal Value (M)1,276.141,342.591,411.78
Equity Value (M)1,644.851,721.871,801.91
Shares Outstanding (M)584.45584.45584.45
Fair Value$2.81$2.95$3.08
Upside / Downside-52.70%-50.49%-48.18%

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