1645.HK WACC - Weighted Average Cost of Capital
The WACC of Haina Intelligent Equipment International Holdings Ltd (1645.HK) is 6.4%.
| Range | Selected | |
| Cost of equity | 6.1% - 8.4% | 7.25% |
| Tax rate | 2.8% - 10.3% | 6.55% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 5.3% - 7.6% | 6.4% |
| Category | Low | High |
| Long-term bond rate | 2.9% | 3.4% |
| Equity market risk premium | 6.0% | 7.0% |
| Adjusted beta | 0.54 | 0.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 6.1% | 8.4% |
| Tax rate | 2.8% | 10.3% |
| Debt/Equity ratio | 0.59 | 0.59 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 5.3% | 7.6% |
| Selected WACC | 6.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 1645.HK | Haina Intelligent Equipment International Holdings Ltd | 0.59 | -0.15 | -0.09 |
| 1289.HK | Wuxi Sunlit Science and Technology Co Ltd | 0.4 | 0.24 | 0.17 |
| 1452.HK | Denox Environmental & Technology Holdings Ltd | 0.38 | 0.48 | 0.35 |
| 1527.HK | Zhejiang Tengy Environmental Technology Co Ltd | 0.49 | -0.06 | -0.04 |
| 1673.HK | Huazhang Technology Holding Ltd | 0.27 | 0.27 | 0.21 |
| 5GD.SI | Sunpower Group Ltd | 4.51 | 0.36 | 0.07 |
| 600243.SS | Qinghaihuading Industrial Co Ltd | 0.07 | 0.69 | 0.65 |
| 600520.SS | WenYi Trinity Technology Co Ltd | 0.01 | 1.22 | 1.21 |
| 603029.SS | Shandong Swan Cotton Industrial Machinery Stock Co Ltd | 0.06 | 1.07 | 1.01 |
| B49.SI | World Precision Machinery Ltd | 0.63 | 0.45 | 0.28 |
| Low | High | |
| Unlevered beta | 0.2 | 0.31 |
| Relevered beta | 0.31 | 0.48 |
| Adjusted relevered beta | 0.54 | 0.65 |
1645.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 1645.HK:
cost_of_equity (7.25%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.54) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.