Horizon Construction Development (HKG:9930) Seems To Be Using A Lot Of Debt
Horizon Construction Development (HKG:9930) Seems To Be Using A Lot Of Debt
Warren Buffett famously said, '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. As with many other companies Horizon Construction Development Limited (HKG:9930) makes use of debt. But is this debt a concern to shareholders?
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。与许多其他公司一样,地平线建筑开发有限公司(HKG: 9930)也使用债务。但是这笔债务是股东关心的问题吗?
What Risk Does Debt Bring?
债务会带来什么风险?
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. 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 step when considering a company's debt levels is to consider its cash and debt together.
债务是帮助企业增长的工具,但是如果企业无法还清贷款人的债务,那么债务就任其摆布。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,对于需要资本以高回报率投资增长的企业来说,债务可以成为一个非常好的工具。考虑公司的债务水平的第一步是同时考虑其现金和债务。
How Much Debt Does Horizon Construction Development Carry?
地平线建设开发公司背负了多少债务?
As you can see below, Horizon Construction Development had CN¥17.3b of debt at December 2023, down from CN¥21.2b a year prior. However, it also had CN¥3.86b in cash, and so its net debt is CN¥13.5b.
如下所示,截至2023年12月,Horizon Construction Development的债务为173亿元人民币,低于去年同期的212亿元人民币。但是,它也有386亿加元的现金,因此其净负债为135亿元人民币。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240522/0-de310a1aaf2640343f96f13fc5407dcd-0-1e7c4c3633884d583ab6653be4fe4b83.png/big)
How Strong Is Horizon Construction Development's Balance Sheet?
地平线建设开发公司的资产负债表有多强?
The latest balance sheet data shows that Horizon Construction Development had liabilities of CN¥9.28b due within a year, and liabilities of CN¥11.2b falling due after that. Offsetting this, it had CN¥3.86b in cash and CN¥6.55b in receivables that were due within 12 months. So its liabilities total CN¥10.0b more than the combination of its cash and short-term receivables.
最新的资产负债表数据显示,Horizon Construction Development的负债为92.8亿元人民币,此后到期的负债为112亿元人民币。与此相抵消的是,它有38.6亿元人民币的现金和65.5亿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100亿元人民币。
The deficiency here weighs heavily on the CN¥6.05b company itself, as if a child were struggling under the weight of an enormous back-pack full of books, his sports gear, and a trumpet. So we definitely think shareholders need to watch this one closely. At the end of the day, Horizon Construction Development would probably need a major re-capitalization if its creditors were to demand repayment.
这里的缺陷严重影响了这家60.5亿元人民币的公司本身,就好像一个孩子在装满书本、运动装备和喇叭的巨大背包的重压下挣扎一样。因此,我们绝对认为股东需要密切关注这个问题。归根结底,如果债权人要求还款,Horizon Construction Development可能需要进行大规模的资本重组。
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。这样,我们既考虑债务的绝对数量,也考虑为债务支付的利率。
While Horizon Construction Development's debt to EBITDA ratio (3.1) suggests that it uses some debt, its interest cover is very weak, at 2.4, suggesting high leverage. In large part that's due to the company's significant depreciation and amortisation charges, which arguably mean its EBITDA is a very generous measure of earnings, and its debt may be more of a burden than it first appears. It seems clear that the cost of borrowing money is negatively impacting returns for shareholders, of late. The good news is that Horizon Construction Development improved its EBIT by 8.4% over the last twelve months, thus gradually reducing its debt levels relative to its earnings. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately the future profitability of the business will decide if Horizon Construction Development can strengthen its balance sheet over time. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
尽管Horizon Construction Development的债务与息税折旧摊销前利润比率(3.1)表明它使用了部分债务,但其利息保障非常薄弱,为2.4,这表明杠杆率很高。这在很大程度上是由于该公司收取了巨额折旧和摊销费用,这可以说意味着其息税折旧摊销前利润是衡量收益的非常慷慨的指标,其债务可能比最初看起来更具负担。看来很明显,借钱成本最近对股东的回报产生了负面影响。好消息是,Horizon Construction Development在过去十二个月中将其息税前利润提高了8.4%,从而逐渐降低了相对于收益的债务水平。资产负债表显然是分析债务时需要关注的领域。但最终,该业务未来的盈利能力将决定Horizon Construction Development能否随着时间的推移加强其资产负债表。因此,如果你想看看专业人士的想法,你可能会发现这份关于分析师利润预测的免费报告很有趣。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. During the last three years, Horizon Construction Development burned a lot of cash. While that may be a result of expenditure for growth, it does make the debt far more risky.
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。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,Horizon Construction Development消耗了大量现金。尽管这可能是增长支出的结果,但它确实使债务风险大大增加。
Our View
我们的观点
On the face of it, Horizon Construction Development's conversion of EBIT to free cash flow left us tentative about the stock, and its level of total liabilities was no more enticing than the one empty restaurant on the busiest night of the year. But at least it's pretty decent at growing its EBIT; that's encouraging. Taking into account all the aforementioned factors, it looks like Horizon Construction Development has too much debt. While some investors love that sort of risky play, it's certainly not our cup of tea. When analysing debt levels, the balance sheet is the obvious place to start. However, not all investment risk resides within the balance sheet - far from it. For instance, we've identified 2 warning signs for Horizon Construction Development that you should be aware of.
从表面上看,Horizon Construction Development将息税前利润转换为自由现金流使我们对该股持初步看法,其总负债水平并不比一年中最繁忙夜晚那家空荡荡的餐厅更具吸引力。但至少它在增长息税前利润方面相当不错;这令人鼓舞。考虑到上述所有因素,Horizon Construction Development的债务似乎过多。尽管有些投资者喜欢这种冒险的游戏,但这肯定不是我们的好选择。在分析债务水平时,资产负债表是显而易见的起点。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。例如,我们已经确定了Horizon Construction Development的两个警告信号,你应该注意这些信号。
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。