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The Bank of East Asia, Limited (0023.HK)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$26.00 - $39.43$32.31
Multi-Stage$53.79 - $59.17$56.43
Blended Fair Value$44.37
Current Price$12.10
Upside266.70%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS16.29%5.85%0.660.520.760.640.510.310.310.940.280.31
YoY Growth--27.09%-31.08%18.51%24.15%65.01%-1.08%-66.65%234.45%-8.69%-17.56%
Dividend Yield--6.71%5.48%7.99%5.69%3.10%1.79%1.26%2.78%0.95%1.07%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)7,902.00
(-) Cash Dividends Paid (M)3,453.00
(=) Cash Retained (M)4,449.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,580.40987.75592.65
Cash Retained (M)4,449.004,449.004,449.00
(-) Cash Required (M)-1,580.40-987.75-592.65
(=) Excess Retained (M)2,868.603,461.253,856.35
(/) Shares Outstanding (M)2,643.522,643.522,643.52
(=) Excess Retained per Share1.091.311.46
LTM Dividend per Share1.311.311.31
(+) Excess Retained per Share1.091.311.46
(=) Adjusted Dividend2.392.622.77
WACC / Discount Rate7.01%7.01%7.01%
Growth Rate-2.00%-1.00%0.00%
Fair Value$26.00$32.31$39.43
Upside / Downside114.89%167.06%225.83%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)7,902.007,822.987,744.757,667.307,590.637,514.727,740.17
Payout Ratio43.70%52.96%62.22%71.48%80.74%90.00%92.50%
Projected Dividends (M)3,453.004,142.914,818.685,480.526,128.646,763.257,159.65

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.01%7.01%7.01%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)3,832.303,871.403,910.51
Year 2 PV (M)4,123.214,207.794,293.22
Year 3 PV (M)4,337.934,472.094,608.98
Year 4 PV (M)4,487.244,673.214,864.91
Year 5 PV (M)4,580.624,819.145,067.50
PV of Terminal Value (M)120,829.97127,121.87133,673.18
Equity Value (M)142,191.27149,165.50156,418.30
Shares Outstanding (M)2,643.522,643.522,643.52
Fair Value$53.79$56.43$59.17
Upside / Downside344.53%366.34%389.01%

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