Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Shanghai Dazhong Public Utilities(Group) Co.,Ltd. (600635.SS)

Company Dividend Discount ModelIndustry: Regulated GasSector: Utilities

Valuation Snapshot

Stable Growth$2.09 - $3.38$2.67
Multi-Stage$4.99 - $5.50$5.24
Blended Fair Value$3.96
Current Price$5.87
Upside-32.56%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-10.00%0.49%0.120.130.150.160.170.200.160.140.110.08
YoY Growth---8.57%-15.32%-4.06%-6.95%-14.58%23.81%18.61%26.62%38.59%-31.00%
Dividend Yield--3.17%4.47%5.11%4.57%4.30%5.01%2.14%2.79%1.70%1.13%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)582.58
(-) Cash Dividends Paid (M)154.97
(=) Cash Retained (M)427.61
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)116.5272.8243.69
Cash Retained (M)427.61427.61427.61
(-) Cash Required (M)-116.52-72.82-43.69
(=) Excess Retained (M)311.09354.79383.91
(/) Shares Outstanding (M)2,953.532,953.532,953.53
(=) Excess Retained per Share0.110.120.13
LTM Dividend per Share0.050.050.05
(+) Excess Retained per Share0.110.120.13
(=) Adjusted Dividend0.160.170.18
WACC / Discount Rate5.91%5.91%5.91%
Growth Rate-1.51%-0.51%0.49%
Fair Value$2.09$2.67$3.38
Upside / Downside-64.33%-54.45%-42.39%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)582.58579.59576.62573.67570.73567.80584.84
Payout Ratio26.60%39.28%51.96%64.64%77.32%90.00%92.50%
Projected Dividends (M)154.97227.67299.62370.82441.29511.02540.97

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate5.91%5.91%5.91%
Growth Rate-1.51%-0.51%0.49%
Year 1 PV (M)212.81214.97217.13
Year 2 PV (M)261.77267.12272.51
Year 3 PV (M)302.83312.15321.66
Year 4 PV (M)336.85350.75365.06
Year 5 PV (M)364.62383.51403.18
PV of Terminal Value (M)13,269.3313,956.8114,672.49
Equity Value (M)14,748.2215,485.3016,252.03
Shares Outstanding (M)2,953.532,953.532,953.53
Fair Value$4.99$5.24$5.50
Upside / Downside-14.93%-10.68%-6.26%

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