Is Suzhou Centec Communications (SHSE:688702) A Risky Investment?
Is Suzhou Centec Communications (SHSE:688702) A Risky Investment?
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.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. As with many other companies Suzhou Centec Communications Co., Ltd. (SHSE:688702) makes use of debt. But the more important question is: how much risk is that debt creating?
巴菲特的搭档李录支持的外部基金管理员李录明确表示:“最大的投资风险不是价格的波动,而是是否会遭受永久性的资本损失。” 因为债务经常是企业崩溃的原因之一,所以当我们考虑一家公司的风险性时,首先考虑的是其资产负债表。就像许多其他公司一样,苏州中科通信股份有限公司也使用债务。但更重要的问题是:这些债务造成了多大的风险?
When Is Debt A Problem?
什么时候负债才是一个问题?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. 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. 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.
当企业不能轻松地通过自由现金流或以有吸引力的价格筹集资本来履行这些义务时,债务和其他负债负担将对企业构成风险。如果公司无法履行偿还债务的法定义务,股东可能会一文不值。当然,虽然这种情况并不太常见,但我们经常看到负债累累的公司因为债权人强迫它们以低价筹集资本而导致股东永久稀释。当然,还有很多公司使用债务来资助其成长,而没有任何负面影响。在考虑企业使用了多少债务时,需要先看看它的现金和债务状况。
How Much Debt Does Suzhou Centec Communications Carry?
苏州中科通信负债情况如何?
The image below, which you can click on for greater detail, shows that Suzhou Centec Communications had debt of CN¥379.9m at the end of March 2024, a reduction from CN¥767.4m over a year. However, its balance sheet shows it holds CN¥1.55b in cash, so it actually has CN¥1.17b net cash.
下面的图像可以放大查看,它显示2024年3月底,苏州中科通信的债务为3.799亿元人民币,比去年减少了7.674亿元人民币。但其资产负债表显示它持有15.5亿元人民币的现金,因此实际上净现金为11.7亿元人民币。
A Look At Suzhou Centec Communications' Liabilities
苏州中科通信负债状况的一览
According to the last reported balance sheet, Suzhou Centec Communications had liabilities of CN¥712.5m due within 12 months, and liabilities of CN¥13.0m due beyond 12 months. Offsetting this, it had CN¥1.55b in cash and CN¥83.8m in receivables that were due within 12 months. So it actually has CN¥907.6m more liquid assets than total liabilities.
根据最近公布的资产负债表,苏州中科通信负有7.125亿元人民币的短期债务,和1300万元人民币的长期债务。与此同时,它持有15.5亿元人民币的现金和8,380万元人民币的应收账款(在12个月内到期)。因此实际上它有9.076亿元人民币的净现金。比总负债还多出了更多的流动资产。
This short term liquidity is a sign that Suzhou Centec Communications could probably pay off its debt with ease, as its balance sheet is far from stretched. Succinctly put, Suzhou Centec Communications boasts net cash, so it's fair to say it does not have a heavy debt load! 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 Suzhou Centec Communications 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.
这种短期流动性意味着苏州中科通信可以轻松偿还债务,因为它的资产负债表还有很大的余地。简言之,苏州中科通信拥有净现金,因此可以说它没有重债负担!毫无疑问,资产负债表能够让我们了解大部分的债务情况。但最终企业的未来盈利能力将决定苏州中科通信能否随着时间推移加强其资产负债表。因此,如果您想了解专业人士的意见,您可能会对这份关于分析师盈利预测的免费报告感兴趣。
In the last year Suzhou Centec Communications wasn't profitable at an EBIT level, but managed to grow its revenue by 13%, to CN¥997m. That rate of growth is a bit slow for our taste, but it takes all types to make a world.
在上一年中,苏州中科通信在税息折旧和摊销前净收益(EBIT)上并未盈利,但其收入增长了13%,达到了9.97亿元人民币。我们觉得这种增长速率有些缓慢,但不同的增长速度展示了不同的市场类型。
So How Risky Is Suzhou Centec Communications?
那么苏州中科通信有多大风险?
Statistically speaking companies that lose money are riskier than those that make money. And the fact is that over the last twelve months Suzhou Centec Communications lost money at the earnings before interest and tax (EBIT) line. Indeed, in that time it burnt through CN¥582m of cash and made a loss of CN¥41m. While this does make the company a bit risky, it's important to remember it has net cash of CN¥1.17b. That kitty means the company can keep spending for growth for at least two years, at current rates. Overall, its balance sheet doesn't seem overly risky, at the moment, but we're always cautious until we see the positive free cash flow. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. To that end, you should be aware of the 1 warning sign we've spotted with Suzhou Centec Communications .
从统计学的角度来看,亏损的公司比赚钱的公司更具有风险性。事实上,在过去的12个月中,苏州中科通信税息折旧和摊销前净收益(EBIT)已经亏损。在那段时间里,它烧掉了5.82亿元人民币的现金,并亏损了4,100万元人民币。虽然这使得该公司有些冒险,但重要的是要记住它有11.7亿元人民币的净现金。这笔钱意味着该公司可以以目前的速度继续为增长而支出至少两年的时间。总体而言,其资产负债表似乎不过分冒险,但在我们看到实现正向自由现金流之前,我们总是会保持谨慎。然而,并不是所有的投资风险都存在于资产负债表中,甚至远离它。为此,您应该看到我们在苏州中科通信上发现的1个警示信号。
At the end of the day, it's often better to focus on companies that are free from net debt. You can access our special list of such companies (all with a track record of profit growth). It's free.
总的来说,专注于没有净债务的公司往往更好。您可以访问我们的特别列表,其中包含这些公司(所有这些公司都有盈利增长的记录)。这是免费的。
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