Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Sany Heavy Industry Co., Ltd (600031.SS)

Company Dividend Discount ModelIndustry: Agricultural - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$25.89 - $84.08$41.95
Multi-Stage$21.39 - $23.41$22.38
Blended Fair Value$32.17
Current Price$23.24
Upside38.42%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.25%12.36%0.350.160.450.660.420.260.150.030.010.04
YoY Growth--111.06%-63.45%-31.67%57.61%62.97%73.92%442.53%201.48%-79.18%-60.00%
Dividend Yield--1.82%1.10%2.63%3.75%1.22%1.48%1.14%0.34%0.12%0.76%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)8,243.08
(-) Cash Dividends Paid (M)3,508.56
(=) Cash Retained (M)4,734.52
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,648.621,030.39618.23
Cash Retained (M)4,734.524,734.524,734.52
(-) Cash Required (M)-1,648.62-1,030.39-618.23
(=) Excess Retained (M)3,085.903,704.134,116.29
(/) Shares Outstanding (M)8,459.218,459.218,459.21
(=) Excess Retained per Share0.360.440.49
LTM Dividend per Share0.410.410.41
(+) Excess Retained per Share0.360.440.49
(=) Adjusted Dividend0.780.850.90
WACC / Discount Rate7.39%7.39%7.39%
Growth Rate4.25%5.25%6.25%
Fair Value$25.89$41.95$84.08
Upside / Downside11.40%80.53%261.81%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)8,243.088,675.649,130.909,610.0510,114.3510,645.1010,964.46
Payout Ratio42.56%52.05%61.54%71.03%80.51%90.00%92.50%
Projected Dividends (M)3,508.564,515.765,619.006,825.598,143.349,580.5910,142.12

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.39%7.39%7.39%
Growth Rate4.25%5.25%6.25%
Year 1 PV (M)4,165.194,205.144,245.10
Year 2 PV (M)4,780.434,872.584,965.62
Year 3 PV (M)5,356.155,511.775,670.37
Year 4 PV (M)5,894.126,123.556,359.62
Year 5 PV (M)6,396.076,708.787,033.61
PV of Terminal Value (M)154,358.08161,904.92169,744.10
Equity Value (M)180,950.03189,326.75198,018.42
Shares Outstanding (M)8,459.218,459.218,459.21
Fair Value$21.39$22.38$23.41
Upside / Downside-7.96%-3.70%0.73%

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