Does China Lesso Group Holdings Have A Healthy Balance Sheet?
Does China Lesso Group Holdings Have A Healthy Balance Sheet?
The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. We note that China Lesso Group Holdings Limited (HKG:2128) does have debt on its balance sheet. But the real question is whether this debt is making the company risky.
由伯克希尔哈撒韦的Li·芒格支持的外部基金经理Lu直言不讳地说,最大的投资风险不是价格的波动,而是你是否会遭受永久性的资本损失。因此,当你评估一家公司的风险时,聪明的投资者似乎知道债务是一个非常重要的因素。债务通常涉及破产。*我们注意到中国乐购集团控股有限公司(HKG:2128)的资产负债表上确实有债务。但真正的问题是,这笔债务是否会让公司面临风险。
What Risk Does Debt Bring?
债务会带来什么风险?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. The first step when considering a company's debt levels is to consider its cash and debt together.
一般来说,只有当一家公司无法轻松偿还债务时,债务才会成为一个真正的问题,无论是通过筹集资金还是用自己的现金流。但在最糟糕的情况下,如果一家公司无法偿还债权人的债务,它可能会破产。然而,一种更常见(但仍令人痛苦)的情况是,它必须以低价筹集新的股权资本,从而永久性地稀释股东。当然,债务的好处是,它往往代表着廉价资本,特别是当它用能够以高回报率进行再投资的能力取代公司的稀释时。当考虑一家公司的债务水平时,第一步是把它的现金和债务放在一起考虑。
Check out our latest analysis for China Lesso Group Holdings
查看我们对中国乐视集团控股的最新分析
How Much Debt Does China Lesso Group Holdings Carry?
中国乐视集团控股背负着多少债务?
The image below, which you can click on for greater detail, shows that at June 2023 China Lesso Group Holdings had debt of CN¥22.8b, up from CN¥17.0b in one year. However, it does have CN¥5.64b in cash offsetting this, leading to net debt of about CN¥17.1b.
下面的图片,你可以点击查看更多详细信息,显示了截至2023年6月,中国乐视集团控股公司的债务为228亿加元,而一年内为170亿加元。然而,它确实有56.4亿加元的现金抵消了这一点,导致净债务约为171亿加元。他说:
![](https://newsfile.futunn.com/public/NN-PersistNewsContentImage/7781/20231010/0-9668d133ffe4e2501d2b0e889e7ab818-0-c8f51a2a96eba600923cd86b0da58b3f.png/big)
SEHK:2128 Debt to Equity History October 9th 2023
联交所:2128债转股历史2023年10月9日
How Healthy Is China Lesso Group Holdings' Balance Sheet?
中国乐视集团控股的资产负债表有多健康?
According to the last reported balance sheet, China Lesso Group Holdings had liabilities of CN¥21.1b due within 12 months, and liabilities of CN¥17.3b due beyond 12 months. Offsetting these obligations, it had cash of CN¥5.64b as well as receivables valued at CN¥7.63b due within 12 months. So it has liabilities totalling CN¥25.1b more than its cash and near-term receivables, combined.
根据最近一次报告的资产负债表,中国乐购集团控股公司有211亿加元的负债在12个月内到期,173亿加元的负债在12个月后到期。在抵消这些债务后,该公司有56.4亿加元的现金以及价值76.3亿加元的应收账款在12个月内到期。因此,该公司的负债总额为人民币251亿元,比现金和近期应收账款的总和还要多。他说:
This deficit casts a shadow over the CN¥11.5b company, like a colossus towering over mere mortals. So we definitely think shareholders need to watch this one closely. At the end of the day, China Lesso Group Holdings would probably need a major re-capitalization if its creditors were to demand repayment.
这一赤字给这家115亿元的CN公司蒙上了一层阴影,就像一个庞然大物耸立在凡人之上。因此,我们肯定认为股东需要密切关注这一事件。但归根结底,如果中国乐视集团控股的债权人要求偿还,它可能需要进行重大的资本重组。他说:
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
我们通过查看公司的净债务除以利息、税项、折旧和摊销前收益(EBITDA),并计算其息税前收益(EBIT)覆盖利息支出(利息覆盖)的容易程度,来衡量公司的债务负担与其盈利能力的关系。通过这种方式,我们既考虑了债务的绝对数量,也考虑了为其支付的利率。
China Lesso Group Holdings has a debt to EBITDA ratio of 3.2 and its EBIT covered its interest expense 5.3 times. This suggests that while the debt levels are significant, we'd stop short of calling them problematic. It is well worth noting that China Lesso Group Holdings's EBIT shot up like bamboo after rain, gaining 57% in the last twelve months. That'll make it easier to manage its debt. There's no doubt that we learn most about debt from the balance sheet. But ultimately the future profitability of the business will decide if China Lesso Group Holdings can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
中国乐购集团控股的债务与息税前利润之比为3.2倍,息税前利润为利息支出的5.3倍。但这表明,尽管债务水平很高,但我们不会说它们有问题。他说,值得注意的是,中国乐购集团控股的息税前利润如雨后春笋般迅速增长,在最近12个月中上涨了57%。这将使其更容易管理债务。他说,毫无疑问,我们从资产负债表中了解到的债务最多。但最终,该业务未来的盈利能力将决定中国乐视集团控股能否随着时间的推移加强其资产负债表。所以,如果你着眼于未来,你可以看看这个免费显示分析师利润预测的报告。
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So we always check how much of that EBIT is translated into free cash flow. In the last three years, China Lesso Group Holdings's free cash flow amounted to 30% of its EBIT, less than we'd expect. That weak cash conversion makes it more difficult to handle indebtedness.
最后,企业需要自由现金流来偿还债务;会计利润只是不能削减这一点。因此,我们总是检查EBIT中有多少转化为自由现金流。最近三年,中国乐购集团控股的自由现金流占其息税前利润的30%,低于我们的预期。他说,现金转换率较低,加大了处理负债的难度。他说: