Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

CGN Power Co., Ltd. (003816.SZ)

Company Dividend Discount ModelIndustry: Independent Power ProducersSector: Utilities

Valuation Snapshot

Stable Growth$19.87 - $37.00$34.68
Multi-Stage$6.24 - $6.83$6.53
Blended Fair Value$20.60
Current Price$3.62
Upside469.14%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-1.71%14.41%0.320.090.080.080.080.350.320.050.070.08
YoY Growth--264.99%3.53%4.98%5.33%-78.04%8.31%607.29%-30.85%-20.25%-0.91%
Dividend Yield--8.75%2.19%2.93%2.93%2.68%11.89%8.90%1.26%1.82%2.28%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)9,406.28
(-) Cash Dividends Paid (M)8,104.90
(=) Cash Retained (M)1,301.38
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,881.261,175.79705.47
Cash Retained (M)1,301.381,301.381,301.38
(-) Cash Required (M)-1,881.26-1,175.79-705.47
(=) Excess Retained (M)-579.88125.59595.91
(/) Shares Outstanding (M)50,487.0150,487.0150,487.01
(=) Excess Retained per Share-0.010.000.01
LTM Dividend per Share0.160.160.16
(+) Excess Retained per Share-0.010.000.01
(=) Adjusted Dividend0.150.160.17
WACC / Discount Rate6.14%6.14%6.14%
Growth Rate5.35%6.35%7.35%
Fair Value$19.87$34.68$37.00
Upside / Downside448.96%857.91%922.17%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)9,406.2810,004.0110,639.7111,315.8212,034.8812,799.6413,183.63
Payout Ratio86.16%86.93%87.70%88.47%89.23%90.00%92.50%
Projected Dividends (M)8,104.908,696.679,330.9110,010.6410,739.0811,519.6812,194.86

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.14%6.14%6.14%
Growth Rate5.35%6.35%7.35%
Year 1 PV (M)8,116.188,193.228,270.25
Year 2 PV (M)8,126.848,281.858,438.32
Year 3 PV (M)8,136.898,370.808,609.14
Year 4 PV (M)8,146.348,460.068,782.76
Year 5 PV (M)8,155.208,549.658,959.22
PV of Terminal Value (M)274,530.17287,808.74301,596.22
Equity Value (M)315,211.61329,664.31344,655.92
Shares Outstanding (M)50,487.0150,487.0150,487.01
Fair Value$6.24$6.53$6.83
Upside / Downside72.47%80.38%88.58%

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