Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Dongguang Chemical Limited (1702.HK)

Company Dividend Discount ModelIndustry: ChemicalsSector: Basic Materials

Valuation Snapshot

Stable Growth$72.57 - $85.55$80.15
Multi-Stage$158.89 - $175.01$166.79
Blended Fair Value$123.47
Current Price$1.55
Upside7,865.89%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS16.48%0.00%0.070.070.080.040.050.030.020.000.000.28
YoY Growth--2.64%-14.46%99.14%-23.10%59.50%101.05%0.00%0.00%-100.00%0.00%
Dividend Yield--3.91%3.81%3.59%2.06%3.22%1.59%0.69%0.00%0.00%20.58%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)276.23
(-) Cash Dividends Paid (M)65.75
(=) Cash Retained (M)210.48
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)55.2534.5320.72
Cash Retained (M)210.48210.48210.48
(-) Cash Required (M)-55.25-34.53-20.72
(=) Excess Retained (M)155.24175.95189.76
(/) Shares Outstanding (M)620.94620.94620.94
(=) Excess Retained per Share0.250.280.31
LTM Dividend per Share0.110.110.11
(+) Excess Retained per Share0.250.280.31
(=) Adjusted Dividend0.360.390.41
WACC / Discount Rate-21.36%-21.36%-21.36%
Growth Rate1.95%2.95%3.95%
Fair Value$72.57$80.15$85.55
Upside / Downside4,581.69%5,070.83%5,419.40%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)276.23284.38292.78301.43310.33319.49329.08
Payout Ratio23.80%37.04%50.28%63.52%76.76%90.00%92.50%
Projected Dividends (M)65.75105.34147.21191.47238.21287.54304.40

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate-21.36%-21.36%-21.36%
Growth Rate1.95%2.95%3.95%
Year 1 PV (M)132.66133.96135.26
Year 2 PV (M)233.46238.06242.71
Year 3 PV (M)382.38393.74405.32
Year 4 PV (M)599.08622.93647.49
Year 5 PV (M)910.66956.211,003.56
PV of Terminal Value (M)96,403.77101,225.29106,237.83
Equity Value (M)98,662.00103,570.19108,672.16
Shares Outstanding (M)620.94620.94620.94
Fair Value$158.89$166.79$175.01
Upside / Downside10,150.99%10,660.95%11,191.05%

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