Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Hunan Zhongke Electric Co., Ltd. (300035.SZ)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$61.70 - $151.10$141.60
Multi-Stage$22.11 - $24.19$23.13
Blended Fair Value$82.37
Current Price$22.73
Upside262.37%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS33.77%15.38%0.240.300.310.150.080.060.020.040.070.03
YoY Growth---20.85%-2.08%109.65%94.95%35.23%269.72%-64.44%-39.57%102.29%-39.25%
Dividend Yield--1.48%3.24%1.82%0.46%0.70%0.88%0.25%0.68%0.92%0.53%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)521.20
(-) Cash Dividends Paid (M)228.59
(=) Cash Retained (M)292.60
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)104.2465.1539.09
Cash Retained (M)292.60292.60292.60
(-) Cash Required (M)-104.24-65.15-39.09
(=) Excess Retained (M)188.36227.45253.51
(/) Shares Outstanding (M)685.98685.98685.98
(=) Excess Retained per Share0.270.330.37
LTM Dividend per Share0.330.330.33
(+) Excess Retained per Share0.270.330.37
(=) Adjusted Dividend0.610.660.70
WACC / Discount Rate6.54%6.54%6.54%
Growth Rate5.50%6.50%7.50%
Fair Value$61.70$141.60$151.10
Upside / Downside171.43%522.99%564.77%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)521.20555.07591.15629.58670.50714.08735.51
Payout Ratio43.86%53.09%62.32%71.54%80.77%90.00%92.50%
Projected Dividends (M)228.59294.67368.38450.42541.58642.68680.34

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.54%6.54%6.54%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)273.99276.59279.18
Year 2 PV (M)318.48324.55330.67
Year 3 PV (M)362.08372.47383.06
Year 4 PV (M)404.79420.36436.37
Year 5 PV (M)446.64468.21490.61
PV of Terminal Value (M)13,358.7014,003.9314,673.86
Equity Value (M)15,164.6715,866.1016,593.75
Shares Outstanding (M)685.98685.98685.98
Fair Value$22.11$23.13$24.19
Upside / Downside-2.74%1.76%6.42%

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