Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Hsino Tower Group Co., Ltd. (601096.SS)

Company Dividend Discount ModelIndustry: Electrical Equipment & PartsSector: Industrials

Valuation Snapshot

Stable Growth$2.34 - $5.27$3.39
Multi-Stage$10.01 - $11.06$10.53
Blended Fair Value$6.96
Current Price$4.24
Upside64.13%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS-18.18%0.00%0.030.000.040.070.060.080.000.000.000.00
YoY Growth--538.04%-89.32%-42.70%31.40%-28.58%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.70%0.09%2.53%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)334.62
(-) Cash Dividends Paid (M)82.28
(=) Cash Retained (M)252.33
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)66.9241.8325.10
Cash Retained (M)252.33252.33252.33
(-) Cash Required (M)-66.92-41.83-25.10
(=) Excess Retained (M)185.41210.51227.24
(/) Shares Outstanding (M)2,674.502,674.502,674.50
(=) Excess Retained per Share0.070.080.08
LTM Dividend per Share0.030.030.03
(+) Excess Retained per Share0.070.080.08
(=) Adjusted Dividend0.100.110.12
WACC / Discount Rate2.20%2.20%2.20%
Growth Rate-2.00%-1.00%0.00%
Fair Value$2.34$3.39$5.27
Upside / Downside-44.87%-20.04%24.26%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)334.62331.27327.96324.68321.43318.22327.76
Payout Ratio24.59%37.67%50.75%63.84%76.92%90.00%92.50%
Projected Dividends (M)82.28124.80166.45207.26247.24286.39303.18

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate2.20%2.20%2.20%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)120.88122.11123.35
Year 2 PV (M)156.17159.37162.61
Year 3 PV (M)188.36194.18200.13
Year 4 PV (M)217.64226.66235.95
Year 5 PV (M)244.19256.91270.15
PV of Terminal Value (M)25,850.6527,196.7528,598.35
Equity Value (M)26,777.8828,155.9829,590.54
Shares Outstanding (M)2,674.502,674.502,674.50
Fair Value$10.01$10.53$11.06
Upside / Downside136.14%148.29%160.94%

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