Definitive Analysis
Definitive Analysis

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Hung Ching Development & Construction Co., Ltd. (2527.TW)

Company Dividend Discount ModelIndustry: Real Estate - ServicesSector: Real Estate

Valuation Snapshot

Stable Growth$87.82 - $214.74$130.88
Multi-Stage$109.04 - $119.58$114.21
Blended Fair Value$122.54
Current Price$25.40
Upside382.45%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.56%6.49%1.501.003.011.401.801.200.800.801.101.50
YoY Growth--50.00%-66.67%114.29%-22.22%50.00%50.00%0.00%-27.27%-26.67%87.50%
Dividend Yield--4.58%2.29%13.55%4.68%8.49%6.84%3.46%2.75%5.13%8.29%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,079.07
(-) Cash Dividends Paid (M)523.52
(=) Cash Retained (M)555.56
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)215.81134.8880.93
Cash Retained (M)555.56555.56555.56
(-) Cash Required (M)-215.81-134.88-80.93
(=) Excess Retained (M)339.74420.67474.62
(/) Shares Outstanding (M)261.10261.10261.10
(=) Excess Retained per Share1.301.611.82
LTM Dividend per Share2.012.012.01
(+) Excess Retained per Share1.301.611.82
(=) Adjusted Dividend3.313.623.82
WACC / Discount Rate6.43%6.43%6.43%
Growth Rate2.56%3.56%4.56%
Fair Value$87.82$130.88$214.74
Upside / Downside245.73%415.27%745.43%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,079.071,117.531,157.361,198.601,241.321,285.561,324.13
Payout Ratio48.52%56.81%65.11%73.41%81.70%90.00%92.50%
Projected Dividends (M)523.52634.90753.55879.851,014.201,157.011,224.82

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.43%6.43%6.43%
Growth Rate2.56%3.56%4.56%
Year 1 PV (M)590.80596.56602.32
Year 2 PV (M)652.52665.30678.21
Year 3 PV (M)708.98729.92751.26
Year 4 PV (M)760.48790.57821.55
Year 5 PV (M)807.31847.44889.15
PV of Terminal Value (M)24,949.6726,189.9227,479.00
Equity Value (M)28,469.7529,819.7131,221.51
Shares Outstanding (M)261.10261.10261.10
Fair Value$109.04$114.21$119.58
Upside / Downside329.28%349.64%370.77%

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