Here's Why Caihong Display DevicesLtd (SHSE:600707) Can Manage Its Debt Responsibly
Here's Why Caihong Display DevicesLtd (SHSE:600707) 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 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 Caihong Display Devices Co.,Ltd. (SHSE:600707) does have debt on its balance sheet. But is this debt a concern to shareholders?
霍华德·马克斯说得好,与其担心股价波动,‘我担心的是永久性亏损的可能性......我认识的每一个实际投资者都担心这个。'因此当您考虑某支股票的风险时,需要考虑债务,因为债务过多可能会使一家公司倒闭。我们注意到彩虹股份有债务。但是,这种债务是否令股东担忧呢?
When Is Debt A Problem?
什么时候负债才是一个问题?
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. If things get really bad, the lenders can take control of the business. 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. Having said that, the most common situation is where a company manages its debt reasonably well - and to its own advantage. When we examine debt levels, we first consider both cash and debt levels, together.
债务是帮助企业增长的工具,但如果企业无法偿还其贷款人,那么它就存在于他们的控制范围之内。如果情况变得非常糟糕,贷款人可以接管企业。虽然这种情况并不常见,但我们经常看到欠债的公司因为贷款人强制要求以破产价位募集资本而永久稀释股东。话虽如此,最普遍的情况是公司合理管控债务并从中获益。当我们检查债务水平时,首先要考虑现金和债务水平,以及二者的结合。
How Much Debt Does Caihong Display DevicesLtd Carry?
彩虹股份持有多少债务?
The image below, which you can click on for greater detail, shows that Caihong Display DevicesLtd had debt of CN¥14.3b at the end of March 2024, a reduction from CN¥17.3b over a year. However, it also had CN¥6.22b in cash, and so its net debt is CN¥8.09b.
下面的图片可以点击查看更多细节,显示彩虹股份在2024年3月底的债务为143亿元人民币,较去年的173亿元人民币有所减少;不过其也有62.2亿元人民币的现金,因此其净债务为80.9亿元人民币。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240528/0-30822764f3fa0139982ba74d5ea0465c-0-ec4555a22b74a2face9ec495168e9472.png/big)
A Look At Caihong Display DevicesLtd's Liabilities
我们可以从最新的资产负债表中看到,彩虹股份在一年内到期的负债为106亿元人民币,到期后的负债为76.4亿元人民币。与此同时,其有62.2亿元人民币的现金和19.9亿元人民币的应收账款在12个月内到期。因此,其负债总额比现金和短期应收账款还要多101亿元人民币。
We can see from the most recent balance sheet that Caihong Display DevicesLtd had liabilities of CN¥10.6b falling due within a year, and liabilities of CN¥7.64b due beyond that. Offsetting this, it had CN¥6.22b in cash and CN¥1.99b in receivables that were due within 12 months. So it has liabilities totalling CN¥10.1b more than its cash and near-term receivables, combined.
这种负债不是很糟糕,因为彩虹股份的市值为257亿元人民币。因此,如果有需要,它可能会筹集足够的资本来支持其资产负债表。但是显然,我们应该仔细检查它是否可以在不稀释股权的情况下处理其债务。
This deficit isn't so bad because Caihong Display DevicesLtd is worth CN¥25.7b, and thus could probably raise enough capital to shore up its balance sheet, if the need arose. But it's clear that we should definitely closely examine whether it can manage its debt without dilution.
彩虹股份的净债务是其EBITDA的1.9倍,而它的息税前利润只有去年的4.7倍。这意味着业务产生了很大的折旧和摊销费用,因此其债务负担可能比表面看起来更重,因为EBITDA可以说是收益的一种慷慨的度量。我们还注意到,彩虹股份将EBIT从去年的亏损转为正的14亿元人民币。当您分析债务时,资产负债表显然是需要关注的领域。但是您不能完全孤立地看待债务,因为彩虹股份需要盈利来偿还债务。因此,在考虑债务时,一定要注意收益趋势。单击此处以获得交互式快照。
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). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
我们通过查看净债务与利息、税、折旧和摊销前收益(EBITDA)之比以及计算其利息支出由收益前利息和税(EBIT)覆盖的程度来度量一家公司的债务负载相对于其收益能力的程度。此方法的优点在于我们同时考虑了债务的绝对量(以净债务为EBITDA)以及与该债务相关的实际利息支出(以其利息覆盖倍数计算)。
Caihong Display DevicesLtd's net debt is sitting at a very reasonable 1.9 times its EBITDA, while its EBIT covered its interest expense just 4.7 times last year. It seems that the business incurs large depreciation and amortisation charges, so maybe its debt load is heavier than it would first appear, since EBITDA is arguably a generous measure of earnings. We also note that Caihong Display DevicesLtd improved its EBIT from a last year's loss to a positive CN¥1.4b. The balance sheet is clearly the area to focus on when you are analysing debt. But you can't view debt in total isolation; since Caihong Display DevicesLtd 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.
最后,尽管税务人员可能非常喜欢会计利润,但贷款人只接受冰冷的现金。因此,检查其利息和税前利润(EBIT)的多少被转化为实际的自由现金流非常重要。对于任何股东来说,值得高兴的是,彩虹股份在过去一年中实际产生的自由现金流比EBIT多。这种强大的现金转换方式让我们和群众一样兴奋,就像听到Daft Punk音乐会打击乐器的声音一样令人兴奋。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So it is important to check how much of its earnings before interest and tax (EBIT) converts to actual free cash flow. Happily for any shareholders, Caihong Display DevicesLtd actually produced more free cash flow than EBIT over the last year. That sort of strong cash conversion gets us as excited as the crowd when the beat drops at a Daft Punk concert.
就资产负债表而言,彩虹股份的一大优势就是其能够信心满满地将EBIT转化为自由现金流。但是,我们的其他观察结果并不那么令人振奋。例如,其利息覆盖率让我们对其债务感到有些担忧。当我们考虑以上所有元素时,我们认为彩虹股份的债务管理得相当不错。但是,负担还是比较重的,因此我们建议任何股东都要密切关注它。虽然资产负债表是分析债务水平的明显起点,但最终,每家公司都可能存在超出资产负债表范围的风险。例如,彩虹股份存在一个警告标志,我们认为您应该了解。
Our View
我们的观点
When it comes to the balance sheet, the standout positive for Caihong Display DevicesLtd was the fact that it seems able to convert EBIT to free cash flow confidently. However, our other observations weren't so heartening. For example, its interest cover makes us a little nervous about its debt. When we consider all the elements mentioned above, it seems to us that Caihong Display DevicesLtd is managing its debt quite well. Having said that, the load is sufficiently heavy that we would recommend any shareholders keep a close eye on it. 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 example - Caihong Display DevicesLtd has 1 warning sign we think you should be aware of.
就资产负债表而言,彩虹显示设备有限公司的亮点在于其能够自信地将EBIt转化为自由现金流。 然而,我们对其他观察结果并不那么乐观。 例如,其息税前利润倍数对其债务我们有些担忧。 当我们考虑了以上所有元素后,我们认为彩虹显示设备有限公司在管理其债务方面表现相当不错。 话虽如此,负担相当重,我们建议所有股东密切关注。在分析债务水平时,资产负债表是开始的明显地方,但最终,每个公司都可能存在超出资产负债表范畴的风险。例如——我们认为,彩虹显示设备有限公司有 1 个警告信号,您应该了解。
If, after all that, you're more interested in a fast growing company with a rock-solid balance sheet, then check out our list of net cash growth stocks without delay.
如果您在所有这些工作之后,更感兴趣于拥有坚实资产负债表的快速发展公司,请立即查看我们的净现金成长股列表。
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