We Think Ningbo Huaxiang Electronic (SZSE:002048) Can Manage Its Debt With Ease
We Think Ningbo Huaxiang Electronic (SZSE:002048) Can Manage Its Debt With Ease
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.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. Importantly, Ningbo Huaxiang Electronic Co., Ltd. (SZSE:002048) does carry debt. But should shareholders be worried about its use of debt?
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。”当我们思考一家公司的风险有多大时,我们总是喜欢考虑其债务的用途,因为债务过载可能导致破产。重要的是,宁波华翔电子有限公司(深圳证券交易所:002048)确实有债务。但是,股东是否应该担心其债务的使用?
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. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. 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. When we think about a company's use of debt, we first look at 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。最终,如果公司无法履行偿还债务的法律义务,股东可能会一无所获。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。当我们考虑公司使用债务时,我们首先将现金和债务放在一起考虑。
What Is Ningbo Huaxiang Electronic's Net Debt?
宁波华翔电子的净负债是多少?
The image below, which you can click on for greater detail, shows that at September 2023 Ningbo Huaxiang Electronic had debt of CN¥1.49b, up from CN¥746.2m in one year. But it also has CN¥3.01b in cash to offset that, meaning it has CN¥1.53b net cash.
您可以点击下图查看更多详情,该图片显示,截至2023年9月,宁波华翔电子的债务为14.9亿元人民币,高于一年内的7.462亿元人民币。但它也有30.1亿元的现金来抵消这一点,这意味着它的净现金为15.3亿元人民币。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240319/0-271c59d52aa9590dc9ef510e3f72b17a-0-6a71d85d5d6b316fc343310af96bdaa5.png/big)
How Healthy Is Ningbo Huaxiang Electronic's Balance Sheet?
宁波华翔电子的资产负债表有多健康?
The latest balance sheet data shows that Ningbo Huaxiang Electronic had liabilities of CN¥10.3b due within a year, and liabilities of CN¥1.87b falling due after that. Offsetting these obligations, it had cash of CN¥3.01b as well as receivables valued at CN¥7.45b due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by CN¥1.69b.
最新的资产负债表数据显示,宁波华翔电子有一年内到期的103亿元人民币的负债,18.7亿元人民币的负债在此之后到期。除了这些债务外,它还有30.1亿元人民币的现金以及价值74.5亿元人民币的应收账款将在12个月内到期。因此,其负债超过其现金和(短期)应收账款总额16.9亿元人民币。
Of course, Ningbo Huaxiang Electronic has a market capitalization of CN¥10.6b, so these liabilities are probably manageable. But there are sufficient liabilities that we would certainly recommend shareholders continue to monitor the balance sheet, going forward. While it does have liabilities worth noting, Ningbo Huaxiang Electronic also has more cash than debt, so we're pretty confident it can manage its debt safely.
当然,宁波华翔电子的市值为106亿元人民币,因此这些负债可能是可以控制的。但是,有足够的负债,我们肯定会建议股东今后继续监督资产负债表。尽管宁波华翔电子确实有值得注意的负债,但其现金也多于债务,因此我们非常有信心它可以安全地管理债务。
In addition to that, we're happy to report that Ningbo Huaxiang Electronic has boosted its EBIT by 30%, thus reducing the spectre of future debt repayments. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Ningbo Huaxiang Electronic'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.
除此之外,我们很高兴地向大家报告,宁波华翔电子已将其息税前利润提高了30%,从而减少了对未来债务偿还的担忧。资产负债表显然是分析债务时需要关注的领域。但是,未来的收益比什么都更能决定宁波华翔电子未来保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。
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. While Ningbo Huaxiang Electronic has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. During the last three years, Ningbo Huaxiang Electronic produced sturdy free cash flow equating to 58% of its EBIT, about what we'd expect. This cold hard cash means it can reduce its debt when it wants to.
但是我们最终的考虑因素也很重要,因为公司无法用纸面利润来偿还债务;它需要冷硬现金。尽管宁波华翔电子的资产负债表上有净现金,但仍值得一看其将息税前收益(EBIT)转换为自由现金流的能力,以帮助我们了解其建立(或侵蚀)现金余额的速度有多快。在过去三年中,宁波华翔电子产生了稳健的自由现金流,相当于其息税前利润的58%,与我们的预期差不多。这种冷硬现金意味着它可以在需要时减少债务。
Summing Up
总结
While Ningbo Huaxiang Electronic does have more liabilities than liquid assets, it also has net cash of CN¥1.53b. And it impressed us with its EBIT growth of 30% over the last year. So we don't think Ningbo Huaxiang Electronic's use of debt is risky. There's no doubt that we learn most about debt from the balance sheet. But ultimately, every company can contain risks that exist outside of the balance sheet. We've identified 1 warning sign with Ningbo Huaxiang Electronic , and understanding them should be part of your investment process.
尽管宁波华翔电子的负债确实超过了流动资产,但其净现金也为15.3亿元人民币。它的息税前利润比去年增长了30%,给我们留下了深刻的印象。因此,我们认为宁波华翔电子使用债务没有风险。毫无疑问,我们从资产负债表中学到的关于债务的知识最多。但归根结底,每家公司都可以控制资产负债表之外存在的风险。我们已经向宁波华翔电子确定了一个警告信号,我们知道它们应该是您投资过程的一部分。
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
当一切都说完之后,有时更容易将注意力集中在甚至不需要债务的公司上。读者现在可以100%免费访问净负债为零的成长型股票清单。
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Simply Wall St的这篇文章本质上是笼统的。我们仅使用公正的方法根据历史数据和分析师的预测提供评论,我们的文章无意作为财务建议。它不构成买入或卖出任何股票的建议,也没有考虑到您的目标或财务状况。我们的目标是为您提供由基本数据驱动的长期重点分析。请注意,我们的分析可能不考虑最新的价格敏感型公司公告或定性材料。简而言之,华尔街没有持有任何上述股票的头寸。