Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Xinjiang Hongtong Natural Gas Co., Ltd. (605169.SS)

Company Dividend Discount ModelIndustry: Regulated GasSector: Utilities

Valuation Snapshot

Stable Growth$3.42 - $5.33$4.30
Multi-Stage$8.32 - $9.15$8.73
Blended Fair Value$6.51
Current Price$14.05
Upside-53.64%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019201820172016
DPS-16.19%0.00%0.230.200.410.370.020.560.260.610.010.00
YoY Growth--13.36%-50.63%11.51%1,675.75%-96.27%111.95%-56.72%3,973.84%0.00%0.00%
Dividend Yield--2.33%2.25%3.72%3.11%0.14%3.26%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)100.62
(-) Cash Dividends Paid (M)91.62
(=) Cash Retained (M)9.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)20.1212.587.55
Cash Retained (M)9.009.009.00
(-) Cash Required (M)-20.12-12.58-7.55
(=) Excess Retained (M)-11.13-3.581.45
(/) Shares Outstanding (M)279.15279.15279.15
(=) Excess Retained per Share-0.04-0.010.01
LTM Dividend per Share0.330.330.33
(+) Excess Retained per Share-0.04-0.010.01
(=) Adjusted Dividend0.290.320.33
WACC / Discount Rate6.26%6.26%6.26%
Growth Rate-2.00%-1.00%0.00%
Fair Value$3.42$4.30$5.33
Upside / Downside-75.64%-69.38%-62.08%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)100.6299.6198.6297.6396.6695.6998.56
Payout Ratio91.06%90.85%90.64%90.42%90.21%90.00%92.50%
Projected Dividends (M)91.6290.5089.3888.2887.1986.1291.17

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.26%6.26%6.26%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)84.3185.1786.03
Year 2 PV (M)77.5779.1680.77
Year 3 PV (M)71.3873.5975.84
Year 4 PV (M)65.6868.4071.20
Year 5 PV (M)60.4363.5866.85
PV of Terminal Value (M)1,963.662,065.912,172.38
Equity Value (M)2,323.022,435.802,553.07
Shares Outstanding (M)279.15279.15279.15
Fair Value$8.32$8.73$9.15
Upside / Downside-40.77%-37.90%-34.91%

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