Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Shandong Mining Machinery Group Co., Ltd (002526.SZ)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$0.53 - $0.78$0.65
Multi-Stage$0.71 - $0.78$0.75
Blended Fair Value$0.70
Current Price$3.83
Upside-81.78%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS30.97%-1.41%0.030.010.000.010.020.010.020.010.010.04
YoY Growth--432.79%1,681.96%-95.91%-58.98%142.08%-56.04%109.41%-43.19%-61.30%11.30%
Dividend Yield--0.72%0.18%0.01%0.33%0.84%0.34%0.55%0.38%0.39%1.25%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)113.55
(-) Cash Dividends Paid (M)1.60
(=) Cash Retained (M)111.96
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)22.7114.198.52
Cash Retained (M)111.96111.96111.96
(-) Cash Required (M)-22.71-14.19-8.52
(=) Excess Retained (M)89.2597.76103.44
(/) Shares Outstanding (M)1,778.311,778.311,778.31
(=) Excess Retained per Share0.050.050.06
LTM Dividend per Share0.000.000.00
(+) Excess Retained per Share0.050.050.06
(=) Adjusted Dividend0.050.060.06
WACC / Discount Rate9.50%9.50%9.50%
Growth Rate-0.21%0.79%1.79%
Fair Value$0.53$0.65$0.78
Upside / Downside-86.29%-83.11%-79.63%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)113.55114.45115.36116.27117.19118.12121.66
Payout Ratio1.41%19.13%36.84%54.56%72.28%90.00%92.50%
Projected Dividends (M)1.6021.8942.5063.4484.71106.31112.54

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.50%9.50%9.50%
Growth Rate-0.21%0.79%1.79%
Year 1 PV (M)19.7919.9920.19
Year 2 PV (M)34.7535.4536.16
Year 3 PV (M)46.9048.3249.78
Year 4 PV (M)56.6258.9361.30
Year 5 PV (M)64.2667.5470.96
PV of Terminal Value (M)1,047.011,100.531,156.22
Equity Value (M)1,269.341,330.771,394.61
Shares Outstanding (M)1,778.311,778.311,778.31
Fair Value$0.71$0.75$0.78
Upside / Downside-81.36%-80.46%-79.52%

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