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Sineng Electric Co Ltd - Discounted Cash Flow Model
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Assumptions
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Tax Rate15.0%
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Discount Rate4.0%
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Perpetural Growth Rate
2.9%
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EV/EBITDA Multiple
205.54x
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Transaction Date
11/12/2021
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Fiscal Year End
12/31/2021
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Current Price ($)
19.04
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Diluted Shares Outstanding
132.00 million
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Debt (CNY) 1,426.67 million
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Cash (CNY) 598.81 million
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Capex (CNY) 77.80 million
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CN to USD Exchange Rate
0.16
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Intrinsic Value
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Enterprise Value
$ 4,723.04 million Discounted Cash Flow Entry20212022202320242025202620272028202920302031 Exit
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Plus: Cash $ 95.81 million Rate of Return Date11/12/202112/31/202112/31/202212/31/202312/31/202412/31/202512/31/202612/31/202712/31/202812/31/202912/31/203012/31/203112/31/2031
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Less: Debt $ 228.27 million
Target Price Upside
83% Time Periods012345678910
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Equity Value $ 4,590.58 million
Internal Rate of Return (IRR)
32% Year Fraction 0.14 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
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EBIT 77 91 108 127 150 177 202 230 262 299 340
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Equity Value/Share
$ 34.78
Market Value vs Intrinsic Value
Less: Cash Taxes 12 14 16 19 22 27 30 34 39 45 51
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Market Value 19.04 Plus: D&A 8 8 8 8 8 8 8 8 8 8 8
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Market Value
Upside 15.74 Less: Capex 77.80 82.47 87.42 92.66 98.22 104.11 110.36 116.98 124.00 131.44 139.33
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Market Cap $ 2,513.28 million Intrinsic Value $ 34.78 Less: Changes in NWC - - - - - - - - - - -
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Plus: Debt $ 228.27 million Unlevered FCF(4) 3 12 23 37 54 69 87 107 131 158
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Less: Cash $ 95.81 million (Entry)/Exit(2,646) 43,310
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Enterprise Value
$ 2,645.74 million Transaction CF - (1) 3 12 23 37 54 69 87 107 131 158 43,310
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Transaction CF(2,646) (1) 3 12 23 37 54 69 87 107 131 158 43,310
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Equity Value/Share
$ 19.04
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in USD Terminal Value
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Perpetural Growth 14,949
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EV/EBITDA 71,671
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https://www.bloomberg.com/quote/300827:CH
Average 43,310
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in million Chinese Yuan
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