Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

State Grid Information & Communication Co., Ltd. (600131.SS)

Company Dividend Discount ModelIndustry: Renewable UtilitiesSector: Utilities

Valuation Snapshot

Stable Growth$16.42 - $58.93$27.30
Multi-Stage$10.24 - $11.21$10.72
Blended Fair Value$19.01
Current Price$17.66
Upside7.62%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS11.04%10.57%0.200.190.190.180.150.120.120.020.020.02
YoY Growth--2.80%3.61%5.70%18.82%26.22%-2.73%509.76%0.00%0.00%-72.72%
Dividend Yield--1.06%1.01%0.94%1.18%0.97%0.66%0.62%0.31%0.18%0.25%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)735.67
(-) Cash Dividends Paid (M)41.27
(=) Cash Retained (M)694.40
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)147.1391.9655.18
Cash Retained (M)694.40694.40694.40
(-) Cash Required (M)-147.13-91.96-55.18
(=) Excess Retained (M)547.26602.44639.22
(/) Shares Outstanding (M)1,269.981,269.981,269.98
(=) Excess Retained per Share0.430.470.50
LTM Dividend per Share0.030.030.03
(+) Excess Retained per Share0.430.470.50
(=) Adjusted Dividend0.460.510.54
WACC / Discount Rate8.48%8.48%8.48%
Growth Rate5.50%6.50%7.50%
Fair Value$16.42$27.30$58.93
Upside / Downside-7.02%54.57%233.67%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)735.67783.49834.41888.65946.411,007.931,038.17
Payout Ratio5.61%22.49%39.37%56.24%73.12%90.00%92.50%
Projected Dividends (M)41.27176.19328.48499.81692.04907.14960.30

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.48%8.48%8.48%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)160.90162.42163.95
Year 2 PV (M)273.92279.14284.41
Year 3 PV (M)380.62391.55402.68
Year 4 PV (M)481.26499.77518.81
Year 5 PV (M)576.09603.91632.80
PV of Terminal Value (M)11,133.6911,671.4512,229.80
Equity Value (M)13,006.4913,608.2514,232.44
Shares Outstanding (M)1,269.981,269.981,269.98
Fair Value$10.24$10.72$11.21
Upside / Downside-42.01%-39.32%-36.54%

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