Here's Why Guizhou Zhongyida (SHSE:600610) Can Afford Some Debt
Here's Why Guizhou Zhongyida (SHSE:600610) Can Afford Some Debt
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. Importantly, Guizhou Zhongyida Co., Ltd (SHSE:600610) does carry debt. But should shareholders be worried about its use of debt?
传奇基金经理李录(查理·芒格支持的人)曾经说过:“最大的投资风险不是价格波动,而是你是否会遭受资本的永久损失。”因此看起来聪明的投资者都知道,通常与破产有关的债务是评估公司风险的非常重要因素。值得注意的是,贵州中毅达股份有限公司(SHSE:600610)确实有债务。但是股东们应该担心它的债务使用吗?
Why Does Debt Bring Risk?
为什么债务会带来风险?
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. However, a more usual (but still expensive) situation is where a company must dilute shareholders at a cheap share price simply to get debt under control. Of course, plenty of companies use debt to fund growth, without any negative consequences. When we examine debt levels, we first consider both cash and debt levels, together.
债务是帮助企业发展的工具,但如果企业无法偿还其贷款人的债务,那么它将完全处于债权人的支配下。在最坏的情况下,如果公司无法偿还债务,它甚至可能会破产。然而,在更为普遍(但仍然代价高昂)的情况下,企业必须以低廉的股价稀释股东权益,以便控制债务。当然,很多企业使用债务来支持其发展,而不会产生任何负面影响。在考虑债务水平时,我们首先考虑现金和债务水平。
What Is Guizhou Zhongyida's Debt?
贵州中毅达的债务情况是什么?
The image below, which you can click on for greater detail, shows that at March 2024 Guizhou Zhongyida had debt of CN¥226.8m, up from CN¥205.4m in one year. However, it does have CN¥64.8m in cash offsetting this, leading to net debt of about CN¥162.0m.
下面这张图片提供了更详细的信息(单击放大),显示2024年3月贵州中毅达的债务为CN¥22680万,高于一年前的CN¥20540万。然而,它确实有CN¥6480万的现金抵消,导致净债务约为CN¥16200万。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240529/0-c96efc40127d0a6bc6812888a3d93c9c-0-f605b40fc2f4764e2c4f645fcdddadd1.png/big)
How Strong Is Guizhou Zhongyida's Balance Sheet?
贵州中毅达的资产负债表强度如何?
We can see from the most recent balance sheet that Guizhou Zhongyida had liabilities of CN¥1.10b falling due within a year, and liabilities of CN¥9.71m due beyond that. On the other hand, it had cash of CN¥64.8m and CN¥100.4m worth of receivables due within a year. So it has liabilities totalling CN¥939.6m more than its cash and near-term receivables, combined.
从最新的资产负债表可以看出,贵州中毅达一年内到期的负债为CN¥11亿,超过一年到期的负债为CN¥971万。另一方面,它持有CN¥6480万现金和CN¥10040万短期应收账款。因此,其负债总额超过现金和短期应收账款近CN¥93960万。
This deficit isn't so bad because Guizhou Zhongyida is worth CN¥3.77b, 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. 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 Guizhou Zhongyida 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.
这个赤字并不太糟糕,因为贵州中毅达的价值约为37.7亿人民币,因此如果需要,可能可以筹集足够的资本来支持其资产负债表。但很明显我们必须仔细检查它是否能够管理其债务而不发生股权稀释。当你分析债务时,资产负债表显然是需要关注的领域。但是,我们不能孤立地看待债务,因为贵州中毅达需要盈利来服务债务。因此,在考虑债务时,值得看一下盈利趋势。点击这里查看互动快照。
In the last year Guizhou Zhongyida had a loss before interest and tax, and actually shrunk its revenue by 14%, to CN¥1.2b. That's not what we would hope to see.
在过去一年中,贵州中毅达利息与税前亏损,并实际收入下降了14%,至12亿元人民币。这不是我们希望看到的。
Caveat Emptor
买方自负。
While Guizhou Zhongyida's falling revenue is about as heartwarming as a wet blanket, arguably its earnings before interest and tax (EBIT) loss is even less appealing. To be specific the EBIT loss came in at CN¥33m. Considering that alongside the liabilities mentioned above does not give us much confidence that company should be using so much debt. Quite frankly we think the balance sheet is far from match-fit, although it could be improved with time. We would feel better if it turned its trailing twelve month loss of CN¥118m into a profit. So we do think this stock is quite risky. For riskier companies like Guizhou Zhongyida I always like to keep an eye on the long term profit and revenue trends. Fortunately, you can click to see our interactive graph of its profit, revenue, and operating cashflow.
虽然贵州中毅达下降的收入情况不怎么理想,但其利息和税前收益(EBIT)的亏损甚至更为不可取。具体来说,EBIt亏损为3300万元人民币。考虑到上述负债,我们对该公司大量使用债务并不信心十足。坦白地说,我们认为其资产负债表还有很大的改善空间。如果它能够实现过去12个月11800万元人民币的亏损变成盈利的话,我们会感到更加安心。所以我们认为这支股票非常具有风险。对于像贵州中毅达这样的较高风险的公司,我始终关注其长期利润和收入趋势。幸运的是,您可以单击以查看我们的盈利、收入和营运现金流的互动图表。
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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