Here's Why Henan Shenhuo Coal & PowerLtd (SZSE:000933) Can Manage Its Debt Responsibly
Here's Why Henan Shenhuo Coal & PowerLtd (SZSE:000933) Can Manage Its Debt Responsibly
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of permanent loss is the risk I worry about... and every practical investor I know worries about.' 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. As with many other companies Henan Shenhuo Coal & Power Co.,Ltd (SZSE:000933) makes use of debt. But the more important question is: how much risk is that debt creating?
霍华德·马克斯说得好，他说的不是担心股价的波动，而是 “永久损失的可能性是我担心的风险... 也是我认识的每位实际投资者所担心的风险。”因此，当你评估公司的风险时，看来聪明的货币知道债务（通常涉及破产）是一个非常重要的因素。与许多其他公司一样，河南神火煤电有限公司, Ltd（深圳证券交易所代码：000933）使用债务。但更重要的问题是：这笔债务会带来多大的风险？
Why Does Debt Bring Risk?
为什么债务会带来风险？
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. While that is not too common, we often do see indebted companies permanently diluting shareholders because lenders force them to raise capital at a distressed price. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
债务可以帮助企业，直到企业难以偿还债务，无论是新资本还是自由现金流。在最坏的情况下，如果公司无法向债权人付款，它可能会破产。尽管这种情况并不常见，但我们经常会看到负债公司永久稀释股东，因为贷款人迫使他们以不良价格筹集资金。但是，通过取代稀释，债务可以成为需要资本以高回报率投资增长的企业的极好工具。在考虑企业使用多少债务时，要做的第一件事是同时考虑其现金和债务。
View our latest analysis for Henan Shenhuo Coal & PowerLtd
查看我们对河南神火煤电有限公司的最新分析
What Is Henan Shenhuo Coal & PowerLtd's Net Debt?
河南神火煤电有限公司的净负债是多少？
As you can see below, at the end of September 2023, Henan Shenhuo Coal & PowerLtd had CN¥26.8b of debt, up from CN¥20.5b a year ago. Click the image for more detail. However, it also had CN¥18.0b in cash, and so its net debt is CN¥8.80b.
如下所示，截至2023年9月底，河南神火煤电有限公司的债务为268亿元人民币，高于去年同期的205亿元人民币。点击图片了解更多详情。但是，它也有180亿元的现金，因此其净负债为880亿元人民币。
How Healthy Is Henan Shenhuo Coal & PowerLtd's Balance Sheet?
河南神火煤电有限公司的资产负债表有多健康？
Zooming in on the latest balance sheet data, we can see that Henan Shenhuo Coal & PowerLtd had liabilities of CN¥32.7b due within 12 months and liabilities of CN¥5.54b due beyond that. Offsetting these obligations, it had cash of CN¥18.0b as well as receivables valued at CN¥1.81b due within 12 months. So its liabilities total CN¥18.5b more than the combination of its cash and short-term receivables.
放大最新的资产负债表数据，我们可以看到，河南神火煤电有限公司在12个月内到期的负债为327亿元人民币，之后到期的负债为55.4亿元人民币。除这些债务外，它有180亿元人民币的现金以及价值18.1亿元人民币的应收账款将在12个月内到期。因此，其负债总额比其现金和短期应收账款的总额高出185亿元人民币。
While this might seem like a lot, it is not so bad since Henan Shenhuo Coal & PowerLtd has a market capitalization of CN¥37.4b, and so it could probably strengthen its balance sheet by raising capital if it needed to. But we definitely want to keep our eyes open to indications that its debt is bringing too much risk.
尽管这可能看起来很多，但还不错，因为河南神火煤电有限公司的市值为374亿元人民币，因此如果需要，它可能会通过筹集资金来强化资产负债表。但是，我们绝对希望留意其债务带来过大风险的迹象。
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). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
我们通过以下方法来衡量公司的债务负担与其盈利能力：将其净负债除以利息、税项、折旧和摊销前的收益（EBITDA），并计算其利息和税前收益（EBIT）支付利息支出（利息保障）的难易程度。因此，我们将债务与收益的关系考虑在内，包括和不包括折旧和摊销费用。
Henan Shenhuo Coal & PowerLtd has a low debt to EBITDA ratio of only 0.91. And remarkably, despite having net debt, it actually received more in interest over the last twelve months than it had to pay. So there's no doubt this company can take on debt while staying cool as a cucumber. In fact Henan Shenhuo Coal & PowerLtd's saving grace is its low debt levels, because its EBIT has tanked 36% in the last twelve months. Falling earnings (if the trend continues) could eventually make even modest debt quite risky. When analysing debt levels, the balance sheet is the obvious place to start. But it is future earnings, more than anything, that will determine Henan Shenhuo Coal & PowerLtd's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
河南神火煤电有限公司的债务与息税折旧摊销前利润的比率很低，仅为0.91。值得注意的是，尽管有净负债，但它在过去十二个月中获得的利息实际上超过了必须支付的利息。因此，毫无疑问，这家公司可以承担债务，同时保持冷静。实际上，河南神火煤电有限公司的救济之处在于其低债务水平，因为其息税前利润在过去十二个月中下降了36％。收益下降（如果这种趋势持续下去）最终也可能使即使是微不足道的债务也相当危险。在分析债务水平时，资产负债表是显而易见的起点。但是，未来的收益将决定河南神火煤电有限公司未来维持健康资产负债表的能力。因此，如果您专注于未来，可以查看这份显示分析师利润预测的免费报告。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. Over the last three years, Henan Shenhuo Coal & PowerLtd actually produced more free cash flow than EBIT. That sort of strong cash generation warms our hearts like a puppy in a bumblebee suit.
最后，尽管税务人员可能喜欢会计利润，但贷款人只接受冷硬现金。因此，我们显然需要研究息税前利润是否会带来相应的自由现金流。在过去的三年中，河南神火煤电有限公司产生的自由现金流实际上超过了息税前利润。这种强劲的现金产生像穿着大黄蜂套装的小狗一样温暖着我们的心。
Our View
我们的观点
Henan Shenhuo Coal & PowerLtd's EBIT growth rate was a real negative on this analysis, although the other factors we considered were considerably better. In particular, we are dazzled with its interest cover. When we consider all the factors mentioned above, we do feel a bit cautious about Henan Shenhuo Coal & PowerLtd's use of debt. While we appreciate debt can enhance returns on equity, we'd suggest that shareholders keep close watch on its debt levels, lest they increase. The balance sheet is clearly the area to focus on when you are analysing debt. However, not all investment risk resides within the balance sheet - far from it. These risks can be hard to spot. Every company has them, and we've spotted 1 warning sign for Henan Shenhuo Coal & PowerLtd you should know about.
尽管我们考虑的其他因素要好得多，但根据该分析，河南神火煤电有限公司的息税前利润增长率确实为负数。特别是，它的兴趣封面令我们眼花缭乱。当我们考虑上述所有因素时，我们确实对河南神火煤电有限公司的债务使用感到有些谨慎。尽管我们意识到债务可以提高股本回报率，但我们建议股东密切关注其债务水平，以免债务增加。资产负债表显然是分析债务时需要关注的领域。但是，并非所有的投资风险都存在于资产负债表中，远非如此。这些风险可能很难发现。每家公司都有它们，我们已经发现了一个你应该知道的河南神火煤电有限公司的警告标志。
Of course, if you're the type of investor who prefers buying stocks without the burden of debt, then don't hesitate to discover our exclusive list of net cash growth stocks, today.
当然，如果你是那种喜欢在没有债务负担的情况下购买股票的投资者，那么立即查看我们的净现金增长股票的独家清单。
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