Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Zhejiang Rongsheng Environmental Protection Paper Joint Stock Co., Ltd. (603165.SS)

Company Dividend Discount ModelIndustry: Packaging & ContainersSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$33.49 - $149.28$78.45
Multi-Stage$17.87 - $19.51$18.68
Blended Fair Value$48.56
Current Price$13.63
Upside256.28%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS15.14%34.16%0.610.500.380.670.280.300.280.110.150.18
YoY Growth--22.48%31.70%-43.79%142.82%-8.10%7.99%159.26%-28.62%-18.45%472.91%
Dividend Yield--4.93%4.12%2.61%3.75%2.04%2.62%1.95%0.44%0.71%2.40%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)208.48
(-) Cash Dividends Paid (M)153.93
(=) Cash Retained (M)54.56
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)41.7026.0615.64
Cash Retained (M)54.5654.5654.56
(-) Cash Required (M)-41.70-26.06-15.64
(=) Excess Retained (M)12.8628.5038.92
(/) Shares Outstanding (M)277.75277.75277.75
(=) Excess Retained per Share0.050.100.14
LTM Dividend per Share0.550.550.55
(+) Excess Retained per Share0.050.100.14
(=) Adjusted Dividend0.600.660.69
WACC / Discount Rate7.39%7.39%7.39%
Growth Rate5.50%6.50%7.50%
Fair Value$33.49$78.45$149.28
Upside / Downside145.71%475.54%995.23%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)208.48222.03236.47251.84268.21285.64294.21
Payout Ratio73.83%77.06%80.30%83.53%86.77%90.00%92.50%
Projected Dividends (M)153.93171.11189.88210.37232.71257.08272.14

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.39%7.39%7.39%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)157.84159.33160.83
Year 2 PV (M)161.56164.64167.75
Year 3 PV (M)165.11169.85174.68
Year 4 PV (M)168.48174.96181.62
Year 5 PV (M)171.68179.97188.58
PV of Terminal Value (M)4,138.364,338.244,545.78
Equity Value (M)4,963.035,187.005,419.24
Shares Outstanding (M)277.75277.75277.75
Fair Value$17.87$18.68$19.51
Upside / Downside31.10%37.02%43.15%

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