Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

MEGA P&C Advanced Materials (Shanghai) Company Limited (603062.SS)

Company Dividend Discount ModelIndustry: Chemicals - SpecialtySector: Basic Materials

Valuation Snapshot

Stable Growth$180.32 - $442.59$414.77
Multi-Stage$66.04 - $72.19$69.05
Blended Fair Value$241.91
Current Price$55.27
Upside337.69%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS81.23%0.00%1.901.251.411.280.130.100.000.000.000.00
YoY Growth--52.17%-11.70%10.41%857.82%37.59%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--3.77%2.86%2.43%2.20%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)236.24
(-) Cash Dividends Paid (M)175.46
(=) Cash Retained (M)60.78
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)47.2529.5317.72
Cash Retained (M)60.7860.7860.78
(-) Cash Required (M)-47.25-29.53-17.72
(=) Excess Retained (M)13.5331.2543.06
(/) Shares Outstanding (M)106.15106.15106.15
(=) Excess Retained per Share0.130.290.41
LTM Dividend per Share1.651.651.65
(+) Excess Retained per Share0.130.290.41
(=) Adjusted Dividend1.781.952.06
WACC / Discount Rate6.54%6.54%6.54%
Growth Rate5.50%6.50%7.50%
Fair Value$180.32$414.77$442.59
Upside / Downside226.26%650.45%700.78%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)236.24251.60267.95285.37303.92323.67333.38
Payout Ratio74.27%77.42%80.56%83.71%86.85%90.00%92.50%
Projected Dividends (M)175.46194.78215.87238.88263.96291.30308.38

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.54%6.54%6.54%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)181.10182.82184.53
Year 2 PV (M)186.62190.17193.76
Year 3 PV (M)192.01197.52203.14
Year 4 PV (M)197.28204.86212.67
Year 5 PV (M)202.42212.20222.35
PV of Terminal Value (M)6,050.576,342.816,646.24
Equity Value (M)7,010.007,330.397,662.69
Shares Outstanding (M)106.15106.15106.15
Fair Value$66.04$69.05$72.19
Upside / Downside19.48%24.94%30.60%

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