Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

State Grid Information & Communication Co., Ltd. (600131.SS)

Company Dividend Discount ModelIndustry: Renewable UtilitiesSector: Utilities

Valuation Snapshot

Stable Growth$16.60 - $60.89$27.74
Multi-Stage$10.31 - $11.28$10.78
Blended Fair Value$19.26
Current Price$17.66
Upside9.07%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.04%10.57%0.200.190.190.180.150.120.120.020.020.02
YoY Growth--2.80%3.61%5.70%18.82%26.22%-2.73%509.76%0.00%0.00%-72.72%
Dividend Yield--1.06%1.01%0.94%1.18%0.97%0.66%0.62%0.31%0.18%0.25%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)735.67
(-) Cash Dividends Paid (M)41.27
(=) Cash Retained (M)694.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)147.1391.9655.18
Cash Retained (M)694.40694.40694.40
(-) Cash Required (M)-147.13-91.96-55.18
(=) Excess Retained (M)547.26602.44639.22
(/) Shares Outstanding (M)1,269.981,269.981,269.98
(=) Excess Retained per Share0.430.470.50
LTM Dividend per Share0.030.030.03
(+) Excess Retained per Share0.430.470.50
(=) Adjusted Dividend0.460.510.54
WACC / Discount Rate8.45%8.45%8.45%
Growth Rate5.50%6.50%7.50%
Fair Value$16.60$27.74$60.89
Upside / Downside-6.03%57.07%244.77%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)735.67783.49834.41888.65946.411,007.931,038.17
Payout Ratio5.61%22.49%39.37%56.24%73.12%90.00%92.50%
Projected Dividends (M)41.27176.19328.48499.81692.04907.14960.30

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.45%8.45%8.45%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)160.94162.47163.99
Year 2 PV (M)274.08279.30284.57
Year 3 PV (M)380.96391.89403.03
Year 4 PV (M)481.82500.35519.41
Year 5 PV (M)576.92604.79633.72
PV of Terminal Value (M)11,214.2711,755.9212,318.31
Equity Value (M)13,088.9913,694.7314,323.04
Shares Outstanding (M)1,269.981,269.981,269.98
Fair Value$10.31$10.78$11.28
Upside / Downside-41.64%-38.94%-36.14%

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