Definitive Analysis
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Jingwei Textile Machinery Company Limited (000666.SZ)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$21.57 - $40.64$29.31
Multi-Stage$33.84 - $37.16$35.47
Blended Fair Value$32.39
Current Price$9.37
Upside245.66%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2022202120202019201820172016201520142013
DPS-21.53%10.70%0.570.740.630.640.921.930.910.410.380.32
YoY Growth---22.19%17.88%-2.37%-30.14%-52.44%112.10%121.79%6.55%21.00%53.18%
Dividend Yield--6.12%7.72%8.10%6.79%6.35%10.54%3.96%2.02%1.86%3.29%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,002.70
(-) Cash Dividends Paid (M)402.83
(=) Cash Retained (M)599.87
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)200.54125.3475.20
Cash Retained (M)599.87599.87599.87
(-) Cash Required (M)-200.54-125.34-75.20
(=) Excess Retained (M)399.33474.53524.67
(/) Shares Outstanding (M)704.23704.23704.23
(=) Excess Retained per Share0.570.670.75
LTM Dividend per Share0.570.570.57
(+) Excess Retained per Share0.570.670.75
(=) Adjusted Dividend1.141.251.32
WACC / Discount Rate6.54%6.54%6.54%
Growth Rate1.20%2.20%3.20%
Fair Value$21.57$29.31$40.64
Upside / Downside130.20%212.80%333.76%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,002.701,024.731,047.241,070.251,093.761,117.791,151.33
Payout Ratio40.17%50.14%60.10%70.07%80.03%90.00%92.50%
Projected Dividends (M)402.83513.79629.44749.92875.391,006.011,064.98

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.54%6.54%6.54%
Growth Rate1.20%2.20%3.20%
Year 1 PV (M)477.53482.25486.97
Year 2 PV (M)543.73554.52565.43
Year 3 PV (M)602.08620.10638.49
Year 4 PV (M)653.21679.41706.40
Year 5 PV (M)697.70732.86769.42
PV of Terminal Value (M)20,857.4721,908.5823,001.64
Equity Value (M)23,831.7124,977.7226,168.34
Shares Outstanding (M)704.23704.23704.23
Fair Value$33.84$35.47$37.16
Upside / Downside261.16%278.53%296.57%

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