1341.HK WACC - Weighted Average Cost of Capital

The WACC of Hao Tian International Construction Investment Group Ltd (1341.HK) is 6.9%.

The Cost of Equity of Hao Tian International Construction Investment Group Ltd (1341.HK) is 7.15%.

The Cost of Debt of Hao Tian International Construction Investment Group Ltd (1341.HK) is 6.85%.

	Range	Selected
Cost of equity	5.40% - 8.90%	7.15%
Tax rate	1.30% - 3.00%	2.15%
Cost of debt	6.70% - 7.00%	6.85%
WACC	6.2% - 7.5%	6.9%

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	0.26	0.58

Additional risk adjustments	1.0%	1.5%
Cost of equity	5.40%	8.90%

Tax rate	1.30%	3.00%
Debt/Equity ratio	1.93	1.93
Cost of debt	6.70%	7.00%

After-tax WACC	6.2%	7.5%


Selected WACC	6.9%

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 (7.15%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.26) + risk_adjustments (1.25%)

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