Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Huishang Bank Corporation Limited (3698.HK)

Company Dividend Discount ModelIndustry: Banks - RegionalSector: Financial Services

Valuation Snapshot

Stable Growth$38.57 - $78.97$54.07
Multi-Stage$48.13 - $52.79$50.42
Blended Fair Value$52.24
Current Price$3.52
Upside1,384.16%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-9.15%4.32%0.240.500.460.420.520.380.360.180.300.16
YoY Growth---52.58%7.39%10.89%-19.18%35.61%5.26%99.41%-39.56%85.34%4.90%
Dividend Yield--10.14%23.07%21.09%19.56%24.09%14.91%12.12%5.59%9.33%6.05%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)30,855.08
(-) Cash Dividends Paid (M)8,886.23
(=) Cash Retained (M)21,968.85
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)6,171.023,856.882,314.13
Cash Retained (M)21,968.8521,968.8521,968.85
(-) Cash Required (M)-6,171.02-3,856.88-2,314.13
(=) Excess Retained (M)15,797.8318,111.9619,654.72
(/) Shares Outstanding (M)13,889.8013,889.8013,889.80
(=) Excess Retained per Share1.141.301.42
LTM Dividend per Share0.640.640.64
(+) Excess Retained per Share1.141.301.42
(=) Adjusted Dividend1.781.942.05
WACC / Discount Rate7.04%7.04%7.04%
Growth Rate2.32%3.32%4.32%
Fair Value$38.57$54.07$78.97
Upside / Downside995.78%1,436.05%2,143.56%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)30,855.0831,880.0432,939.0534,033.2435,163.7736,331.8637,421.82
Payout Ratio28.80%41.04%53.28%65.52%77.76%90.00%92.50%
Projected Dividends (M)8,886.2313,083.5417,549.9022,298.5627,343.3432,698.6834,615.18

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.04%7.04%7.04%
Growth Rate2.32%3.32%4.32%
Year 1 PV (M)12,105.1712,223.4712,341.78
Year 2 PV (M)15,023.3115,318.4015,616.35
Year 3 PV (M)17,660.9218,183.8018,716.90
Year 4 PV (M)20,037.0420,831.8921,650.16
Year 5 PV (M)22,169.5923,274.3024,422.61
PV of Terminal Value (M)581,460.63610,434.77640,552.60
Equity Value (M)668,456.66700,266.63733,300.40
Shares Outstanding (M)13,889.8013,889.8013,889.80
Fair Value$48.13$50.42$52.79
Upside / Downside1,267.21%1,332.27%1,399.83%

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