Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Arctech Solar Holding Co., Ltd. (688408.SS)

Company Dividend Discount ModelIndustry: SolarSector: Energy

Valuation Snapshot

Stable Growth$36.12 - $97.50$55.53
Multi-Stage$26.11 - $28.44$27.26
Blended Fair Value$41.39
Current Price$47.43
Upside-12.73%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019201820172016
DPS35.92%0.00%0.770.220.060.280.030.170.000.040.040.00
YoY Growth--253.65%243.81%-77.52%963.75%-84.04%0.00%-100.00%4.72%0.00%0.00%
Dividend Yield--1.41%0.34%0.12%0.51%0.03%0.32%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)325.63
(-) Cash Dividends Paid (M)251.10
(=) Cash Retained (M)74.53
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)65.1340.7024.42
Cash Retained (M)74.5374.5374.53
(-) Cash Required (M)-65.13-40.70-24.42
(=) Excess Retained (M)9.4133.8350.11
(/) Shares Outstanding (M)214.33214.33214.33
(=) Excess Retained per Share0.040.160.23
LTM Dividend per Share1.171.171.17
(+) Excess Retained per Share0.040.160.23
(=) Adjusted Dividend1.221.331.41
WACC / Discount Rate9.05%9.05%9.05%
Growth Rate5.50%6.50%7.50%
Fair Value$36.12$55.53$97.50
Upside / Downside-23.84%17.08%105.56%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)325.63346.80369.34393.35418.91446.14459.53
Payout Ratio77.11%79.69%82.27%84.84%87.42%90.00%92.50%
Projected Dividends (M)251.10276.36303.84333.73366.22401.53425.06

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.05%9.05%9.05%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)251.04253.42255.80
Year 2 PV (M)250.73255.51260.33
Year 3 PV (M)250.17257.35264.67
Year 4 PV (M)249.38258.97268.83
Year 5 PV (M)248.38260.37272.83
PV of Terminal Value (M)4,346.364,556.294,774.26
Equity Value (M)5,596.065,841.926,096.72
Shares Outstanding (M)214.33214.33214.33
Fair Value$26.11$27.26$28.44
Upside / Downside-44.95%-42.53%-40.03%

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