Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

ENC Digital Technology Co., Ltd (603869.SS)

Company Dividend Discount ModelIndustry: Information Technology ServicesSector: Technology

Valuation Snapshot

Stable Growth$0.12 - $0.16$0.14
Multi-Stage$0.27 - $0.30$0.28
Blended Fair Value$0.21
Current Price$9.28
Upside-97.71%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-49.27%-16.95%0.010.000.030.060.170.250.310.200.070.05
YoY Growth--2,502.54%-98.82%-52.35%-66.32%-31.74%-18.31%58.12%175.28%43.50%-9.02%
Dividend Yield--0.15%0.00%0.27%0.61%2.02%2.51%1.90%1.32%0.33%0.23%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)37.99
(-) Cash Dividends Paid (M)10.01
(=) Cash Retained (M)27.97
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)7.604.752.85
Cash Retained (M)27.9727.9727.97
(-) Cash Required (M)-7.60-4.75-2.85
(=) Excess Retained (M)20.3823.2225.12
(/) Shares Outstanding (M)491.23491.23491.23
(=) Excess Retained per Share0.040.050.05
LTM Dividend per Share0.020.020.02
(+) Excess Retained per Share0.040.050.05
(=) Adjusted Dividend0.060.070.07
WACC / Discount Rate8.04%8.04%8.04%
Growth Rate-27.95%-26.95%-25.95%
Fair Value$0.12$0.14$0.16
Upside / Downside-98.67%-98.48%-98.32%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)37.9927.7520.2714.8110.827.908.14
Payout Ratio26.36%39.09%51.82%64.54%77.27%90.00%92.50%
Projected Dividends (M)10.0110.8510.509.568.367.117.53

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.04%8.04%8.04%
Growth Rate-27.95%-26.95%-25.95%
Year 1 PV (M)9.9010.0410.18
Year 2 PV (M)8.759.009.25
Year 3 PV (M)7.277.587.89
Year 4 PV (M)5.816.136.48
Year 5 PV (M)4.514.835.17
PV of Terminal Value (M)94.76101.52108.66
Equity Value (M)131.00139.10147.62
Shares Outstanding (M)491.23491.23491.23
Fair Value$0.27$0.28$0.30
Upside / Downside-97.13%-96.95%-96.76%

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