Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Guangdong Xinbao Electrical Appliances Holdings Co., Ltd (002705.SZ)

Company Dividend Discount ModelIndustry: Furnishings, Fixtures & AppliancesSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$122.39 - $272.38$255.26
Multi-Stage$40.13 - $43.97$42.02
Blended Fair Value$148.64
Current Price$15.72
Upside845.55%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.13%13.98%0.400.410.200.610.400.350.300.270.160.14
YoY Growth---0.59%101.88%-67.13%54.73%14.29%14.95%11.43%65.16%20.00%25.00%
Dividend Yield--2.50%2.33%1.18%3.67%1.13%1.86%2.14%2.29%1.09%1.24%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,108.83
(-) Cash Dividends Paid (M)132.50
(=) Cash Retained (M)976.33
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)221.77138.6083.16
Cash Retained (M)976.33976.33976.33
(-) Cash Required (M)-221.77-138.60-83.16
(=) Excess Retained (M)754.56837.72893.16
(/) Shares Outstanding (M)809.58809.58809.58
(=) Excess Retained per Share0.931.031.10
LTM Dividend per Share0.160.160.16
(+) Excess Retained per Share0.931.031.10
(=) Adjusted Dividend1.101.201.27
WACC / Discount Rate6.44%6.44%6.44%
Growth Rate5.50%6.50%7.50%
Fair Value$122.39$255.26$272.38
Upside / Downside678.55%1,523.82%1,632.73%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,108.831,180.901,257.661,339.411,426.471,519.191,564.77
Payout Ratio11.95%27.56%43.17%58.78%74.39%90.00%92.50%
Projected Dividends (M)132.50325.45542.93787.301,061.151,367.271,447.41

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.44%6.44%6.44%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)302.88305.75308.62
Year 2 PV (M)470.22479.18488.22
Year 3 PV (M)634.57652.79671.35
Year 4 PV (M)795.97826.58858.06
Year 5 PV (M)954.451,000.551,048.41
PV of Terminal Value (M)29,333.4230,750.2332,221.27
Equity Value (M)32,491.5034,015.0735,595.94
Shares Outstanding (M)809.58809.58809.58
Fair Value$40.13$42.02$43.97
Upside / Downside155.30%167.27%179.70%

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