1341.HK WACC - Weighted Average Cost of Capital

The WACC of Hao Tian International Construction Investment Group Ltd (1341.HK) is 7.0%.

The Cost of Equity of Hao Tian International Construction Investment Group Ltd (1341.HK) is 6.70%.

The Cost of Debt of Hao Tian International Construction Investment Group Ltd (1341.HK) is 9.80%.

	Range	Selected
Cost of equity	5.50% - 7.90%	6.70%
Tax rate	3.70% - 5.60%	4.65%
Cost of debt	8.20% - 11.40%	9.80%
WACC	5.8% - 8.3%	7.0%

WACC

1341.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.36	0.51

Additional risk adjustments	0.5%	1.0%
Cost of equity	5.50%	7.90%

Tax rate	3.70%	5.60%
Debt/Equity ratio	0.14	0.14
Cost of debt	8.20%	11.40%

After-tax WACC	5.8%	8.3%


Selected WACC	7.0%

1341.HK's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 1341.HK:

cost_of_equity (6.70%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.36) + risk_adjustments (0.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.