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Hung Ching Development & Construction Co., Ltd. (2527.TW)

Company Dividend Discount ModelIndustry: Real Estate - ServicesSector: Real Estate

Valuation Snapshot

Stable Growth$88.23 - $216.83$131.71
Multi-Stage$109.63 - $120.23$114.83
Blended Fair Value$123.27
Current Price$25.40
Upside385.31%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS4.56%6.49%1.501.003.011.401.801.200.800.801.101.50
YoY Growth--50.00%-66.67%114.29%-22.22%50.00%50.00%0.00%-27.27%-26.67%87.50%
Dividend Yield--4.58%2.29%13.55%4.68%8.49%6.84%3.46%2.75%5.13%8.29%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,079.07
(-) Cash Dividends Paid (M)523.52
(=) Cash Retained (M)555.56
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)215.81134.8880.93
Cash Retained (M)555.56555.56555.56
(-) Cash Required (M)-215.81-134.88-80.93
(=) Excess Retained (M)339.74420.67474.62
(/) Shares Outstanding (M)261.10261.10261.10
(=) Excess Retained per Share1.301.611.82
LTM Dividend per Share2.012.012.01
(+) Excess Retained per Share1.301.611.82
(=) Adjusted Dividend3.313.623.82
WACC / Discount Rate6.41%6.41%6.41%
Growth Rate2.56%3.56%4.56%
Fair Value$88.23$131.71$216.83
Upside / Downside247.35%418.53%753.68%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,079.071,117.531,157.361,198.601,241.321,285.561,324.13
Payout Ratio48.52%56.81%65.11%73.41%81.70%90.00%92.50%
Projected Dividends (M)523.52634.90753.55879.851,014.201,157.011,224.82

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.41%6.41%6.41%
Growth Rate2.56%3.56%4.56%
Year 1 PV (M)590.90596.66602.43
Year 2 PV (M)652.74665.53678.44
Year 3 PV (M)709.34730.29751.65
Year 4 PV (M)760.99791.11822.11
Year 5 PV (M)807.99848.16889.90
PV of Terminal Value (M)25,102.6926,350.5427,647.54
Equity Value (M)28,624.6529,982.2931,392.07
Shares Outstanding (M)261.10261.10261.10
Fair Value$109.63$114.83$120.23
Upside / Downside331.62%352.09%373.34%

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