Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Hefei Taihe Optoelectronic Technology Co., Ltd. (603656.SS)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$28.52 - $33.61$31.49
Multi-Stage$18.41 - $20.24$19.31
Blended Fair Value$25.40
Current Price$22.88
Upside11.01%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-11.46%-2.43%0.050.100.090.090.080.090.150.090.060.06
YoY Growth---50.99%20.53%-1.33%2.69%-9.09%-38.40%75.00%33.33%0.00%0.00%
Dividend Yield--0.27%0.74%0.66%0.73%0.66%0.68%0.83%0.41%0.19%0.40%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)30.58
(-) Cash Dividends Paid (M)9.30
(=) Cash Retained (M)21.27
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6.123.822.29
Cash Retained (M)21.2721.2721.27
(-) Cash Required (M)-6.12-3.82-2.29
(=) Excess Retained (M)15.1617.4518.98
(/) Shares Outstanding (M)177.12177.12177.12
(=) Excess Retained per Share0.090.100.11
LTM Dividend per Share0.050.050.05
(+) Excess Retained per Share0.090.100.11
(=) Adjusted Dividend0.140.150.16
WACC / Discount Rate1.62%1.62%1.62%
Growth Rate3.25%4.25%5.25%
Fair Value$28.52$31.49$33.61
Upside / Downside24.63%37.64%46.90%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)30.5831.8733.2334.6436.1137.6438.77
Payout Ratio30.43%42.35%54.26%66.17%78.09%90.00%92.50%
Projected Dividends (M)9.3013.5018.0322.9228.2033.8835.87

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate1.62%1.62%1.62%
Growth Rate3.25%4.25%5.25%
Year 1 PV (M)13.1513.2813.41
Year 2 PV (M)17.1317.4617.80
Year 3 PV (M)21.2221.8422.48
Year 4 PV (M)25.4426.4427.47
Year 5 PV (M)29.7931.2632.79
PV of Terminal Value (M)3,153.883,309.603,471.41
Equity Value (M)3,260.613,419.893,585.36
Shares Outstanding (M)177.12177.12177.12
Fair Value$18.41$19.31$20.24
Upside / Downside-19.54%-15.61%-11.53%

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