Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

China CITIC Bank Corporation Limited (601998.SS)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$9.13 - $13.48$11.22
Multi-Stage$17.24 - $18.92$18.06
Blended Fair Value$14.64
Current Price$8.50
Upside72.24%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS18.05%9.76%0.500.360.330.260.250.220.240.200.170.00
YoY Growth--39.24%7.27%29.77%4.98%12.67%-7.45%18.99%14.24%0.00%-100.00%
Dividend Yield--7.03%5.75%6.17%5.07%4.51%4.21%3.68%3.07%2.59%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)69,564.00
(-) Cash Dividends Paid (M)47,918.00
(=) Cash Retained (M)21,646.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)13,912.808,695.505,217.30
Cash Retained (M)21,646.0021,646.0021,646.00
(-) Cash Required (M)-13,912.80-8,695.50-5,217.30
(=) Excess Retained (M)7,733.2012,950.5016,428.70
(/) Shares Outstanding (M)59,830.7459,830.7459,830.74
(=) Excess Retained per Share0.130.220.27
LTM Dividend per Share0.800.800.80
(+) Excess Retained per Share0.130.220.27
(=) Adjusted Dividend0.931.021.08
WACC / Discount Rate7.98%7.98%7.98%
Growth Rate-2.00%-1.00%0.00%
Fair Value$9.13$11.22$13.48
Upside / Downside7.47%31.97%58.58%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)69,564.0068,868.3668,179.6867,497.8866,822.9066,154.6768,139.31
Payout Ratio68.88%73.11%77.33%81.55%85.78%90.00%92.50%
Projected Dividends (M)47,918.0050,347.3652,723.3455,046.7757,318.4659,539.2063,028.86

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.98%7.98%7.98%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)46,156.1246,627.1147,098.09
Year 2 PV (M)44,310.6645,219.5746,137.71
Year 3 PV (M)42,412.0943,723.7245,062.11
Year 4 PV (M)40,486.0142,163.9743,893.55
Year 5 PV (M)38,553.7140,561.2942,651.65
PV of Terminal Value (M)819,753.35862,439.80906,886.25
Equity Value (M)1,031,671.941,080,735.461,131,729.35
Shares Outstanding (M)59,830.7459,830.7459,830.74
Fair Value$17.24$18.06$18.92
Upside / Downside102.86%112.51%122.54%

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