We Think Hangzhou Cogeneration Group (SHSE:605011) Can Manage Its Debt With Ease
We Think Hangzhou Cogeneration Group (SHSE:605011) Can Manage Its Debt With Ease
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. We note that Hangzhou Cogeneration Group Co., Ltd. (SHSE:605011) does have debt on its balance sheet. But is this debt a concern to shareholders?
有人说,波动性,而不是债务,是投资者思考风险的最佳方式,但沃伦·巴菲特曾说过一句名言:“波动性远非风险的代名词。”因此,很明显,当你考虑任何给定股票的风险时,你需要考虑债务,因为过多的债务会使公司陷入困境。我们注意到,杭州热电联产集团有限公司(SHSE: 605011)的资产负债表上确实有债务。但是这笔债务是股东关心的问题吗?
When Is Debt A Problem?
债务何时会成为问题?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. Part and parcel of capitalism is the process of 'creative destruction' where failed businesses are mercilessly liquidated by their bankers. 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, plenty of companies use debt to fund growth, without any negative consequences. The first thing to do when considering how much debt a business uses is to look at its cash and debt together.
债务是帮助企业增长的工具,但是如果企业无法偿还贷款人的债务,那么债务就会任由他们摆布。资本主义的重要组成部分是 “创造性破坏” 过程,在这种过程中,倒闭的企业被银行家无情地清算。但是,更常见(但仍然很痛苦)的情况是,它必须以低廉的价格筹集新的股权资本,从而永久稀释股东。当然,许多公司使用债务为增长提供资金,而不会产生任何负面影响。在考虑企业使用多少债务时,要做的第一件事就是综合考虑其现金和债务。
What Is Hangzhou Cogeneration Group's Net Debt?
杭州热电联产集团的净负债是多少?
The image below, which you can click on for greater detail, shows that Hangzhou Cogeneration Group had debt of CN¥728.9m at the end of September 2023, a reduction from CN¥1.13b over a year. But on the other hand it also has CN¥773.4m in cash, leading to a CN¥44.5m net cash position.
您可以点击下图查看更多详情,该图片显示,截至2023年9月底,杭州热电联产集团的债务为7.289亿元人民币,较一年11.3亿元人民币有所减少。但另一方面,它也有7.734亿元的现金,净现金状况为4,450万元人民币。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240322/0-9fd329a95e5aa5ef0ca437b2d0be4f66-0-8bd28ade91554babe0e68d753931ab6b.png/big)
A Look At Hangzhou Cogeneration Group's Liabilities
看看杭州热电联产集团的负债
According to the last reported balance sheet, Hangzhou Cogeneration Group had liabilities of CN¥797.0m due within 12 months, and liabilities of CN¥371.3m due beyond 12 months. Offsetting these obligations, it had cash of CN¥773.4m as well as receivables valued at CN¥354.9m due within 12 months. So its liabilities total CN¥40.0m more than the combination of its cash and short-term receivables.
根据上次报告的资产负债表,杭州热电联产集团在12个月内到期的负债为7.97亿元人民币,12个月以后到期的负债为3.713亿元人民币。除这些债务外,它有7.734亿元的现金以及价值3.549亿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4,00万元人民币。
This state of affairs indicates that Hangzhou Cogeneration Group's balance sheet looks quite solid, as its total liabilities are just about equal to its liquid assets. So it's very unlikely that the CN¥9.27b company is short on cash, but still worth keeping an eye on the balance sheet. While it does have liabilities worth noting, Hangzhou Cogeneration Group also has more cash than debt, so we're pretty confident it can manage its debt safely.
这种状况表明,杭州热电联产集团的资产负债表看起来相当稳健,因为其总负债几乎等于其流动资产。因此,这家927亿元人民币的公司现金短缺的可能性很小,但仍然值得关注资产负债表。尽管它确实有值得注意的负债,但杭州热电联产集团的现金也多于债务,因此我们非常有信心它可以安全地管理债务。
Hangzhou Cogeneration Group's EBIT was pretty flat over the last year, but that shouldn't be an issue given the it doesn't have a lot of debt. There's no doubt that we learn most about debt from the balance sheet. But you can't view debt in total isolation; since Hangzhou Cogeneration Group will need earnings to service that debt. So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.
去年,杭州热电联产集团的息税前利润相当平稳,但鉴于其债务不多,这应该不是问题。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。但是你不能完全孤立地看待债务;因为杭州热电联产集团需要收益来偿还债务。因此,在考虑债务时,绝对值得一看收益趋势。单击此处查看交互式快照。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. While Hangzhou Cogeneration Group 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, Hangzhou Cogeneration Group generated free cash flow amounting to a very robust 95% of its EBIT, more than we'd expect. That puts it in a very strong position to pay down debt.
最后,公司只能用冷硬现金偿还债务,不能用会计利润偿还债务。尽管杭州热电联产集团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,杭州热电联产集团产生的自由现金流相当于其息税前利润的95%,超出了我们的预期。这使其在偿还债务方面处于非常有利的地位。
Summing Up
总结
We could understand if investors are concerned about Hangzhou Cogeneration Group's liabilities, but we can be reassured by the fact it has has net cash of CN¥44.5m. The cherry on top was that in converted 95% of that EBIT to free cash flow, bringing in CN¥311m. So we don't think Hangzhou Cogeneration Group's use of debt is risky. When analysing debt levels, the balance sheet is the obvious place to start. But ultimately, every company can contain risks that exist outside of the balance sheet. For instance, we've identified 2 warning signs for Hangzhou Cogeneration Group that you should be aware of.
我们可以理解投资者是否担心杭州热电联产集团的负债,但我们可以放心,该集团的净现金为4,450万元人民币。最重要的是,它将息税前利润的95%转换为自由现金流,带来了3.11亿元人民币的收入。因此,我们认为杭州热电联产集团使用债务没有风险。在分析债务水平时,资产负债表是显而易见的起点。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。例如,我们已经确定了杭州热电联产集团的两个警告信号,您应该注意这些信号。
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,那么请立即查看我们的独家净现金增长股票清单。
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