Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Korea District Heating Corp. (071320.KS)

Company Dividend Discount ModelIndustry: Regulated WaterSector: Utilities

Valuation Snapshot

Stable Growth$1,005,112.43 - $5,530,123.60$1,942,528.03
Multi-Stage$1,688,289.20 - $1,857,393.51$1,771,217.01
Blended Fair Value$1,856,872.52
Current Price$90,300.00
Upside1,956.34%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%-5.53%1,715.66940.35807.99978.31152.020.002,858.893,852.403,669.922,139.10
YoY Growth--82.45%16.38%-17.41%543.54%0.00%-100.00%-25.79%4.97%71.56%-29.43%
Dividend Yield--3.46%2.51%3.00%2.68%0.40%0.00%4.69%4.58%5.49%3.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)327,691.19
(-) Cash Dividends Paid (M)64,200.75
(=) Cash Retained (M)263,490.44
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)65,538.2440,961.4024,576.84
Cash Retained (M)263,490.44263,490.44263,490.44
(-) Cash Required (M)-65,538.24-40,961.40-24,576.84
(=) Excess Retained (M)197,952.20222,529.04238,913.60
(/) Shares Outstanding (M)11.4211.4211.42
(=) Excess Retained per Share17,331.9219,483.7720,918.34
LTM Dividend per Share5,621.175,621.175,621.17
(+) Excess Retained per Share17,331.9219,483.7720,918.34
(=) Adjusted Dividend22,953.0925,104.9426,539.51
WACC / Discount Rate4.52%4.52%4.52%
Growth Rate2.19%3.19%4.19%
Fair Value$1,005,112.43$1,942,528.03$5,530,123.60
Upside / Downside1,013.08%2,051.19%6,024.17%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)327,691.19338,133.49348,908.54360,026.96371,499.68383,337.99394,838.13
Payout Ratio19.59%33.67%47.76%61.84%75.92%90.00%92.50%
Projected Dividends (M)64,200.75113,861.30166,621.65222,628.93282,036.50345,004.19365,225.27

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate4.52%4.52%4.52%
Growth Rate2.19%3.19%4.19%
Year 1 PV (M)107,881.40108,937.13109,992.86
Year 2 PV (M)149,579.57152,521.47155,492.03
Year 3 PV (M)189,362.03194,975.91200,699.66
Year 4 PV (M)227,293.51236,322.16245,617.16
Year 5 PV (M)263,436.85276,581.61290,245.91
PV of Terminal Value (M)18,344,819.6519,260,174.0520,211,708.06
Equity Value (M)19,282,373.0220,229,512.3321,213,755.66
Shares Outstanding (M)11.4211.4211.42
Fair Value$1,688,289.20$1,771,217.01$1,857,393.51
Upside / Downside1,769.64%1,861.48%1,956.91%

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