Definitive Analysis
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Bros Eastern.,Ltd (601339.SS)

Company Dividend Discount ModelIndustry: Apparel - ManufacturersSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$11.01 - $46.60$19.02
Multi-Stage$10.73 - $11.74$11.22
Blended Fair Value$15.12
Current Price$5.38
Upside181.05%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS9.16%11.42%0.410.630.600.280.060.260.210.360.140.15
YoY Growth---34.53%4.14%117.35%357.37%-77.13%24.16%-40.75%151.91%-3.60%6.49%
Dividend Yield--7.74%11.25%8.71%4.27%1.35%7.74%3.67%6.82%2.29%2.41%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)547.30
(-) Cash Dividends Paid (M)477.76
(=) Cash Retained (M)69.54
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)109.4668.4141.05
Cash Retained (M)69.5469.5469.54
(-) Cash Required (M)-109.46-68.41-41.05
(=) Excess Retained (M)-39.921.1328.49
(/) Shares Outstanding (M)1,486.291,486.291,486.29
(=) Excess Retained per Share-0.030.000.02
LTM Dividend per Share0.320.320.32
(+) Excess Retained per Share-0.030.000.02
(=) Adjusted Dividend0.290.320.34
WACC / Discount Rate6.34%6.34%6.34%
Growth Rate3.57%4.57%5.57%
Fair Value$11.01$19.02$46.60
Upside / Downside104.60%253.48%766.14%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)547.30572.29598.41625.73654.30684.17704.69
Payout Ratio87.29%87.84%88.38%88.92%89.46%90.00%92.50%
Projected Dividends (M)477.76502.67528.86556.39585.33615.75651.84

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.34%6.34%6.34%
Growth Rate3.57%4.57%5.57%
Year 1 PV (M)468.20472.72477.24
Year 2 PV (M)458.80467.71476.69
Year 3 PV (M)449.58462.73476.13
Year 4 PV (M)440.53457.79475.55
Year 5 PV (M)431.64452.89474.96
PV of Terminal Value (M)13,694.4914,368.5315,068.86
Equity Value (M)15,943.2316,682.3617,449.44
Shares Outstanding (M)1,486.291,486.291,486.29
Fair Value$10.73$11.22$11.74
Upside / Downside99.38%108.63%118.22%

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