Here's Why Concord New Energy Group (HKG:182) Is Weighed Down By Its Debt Load
Here's Why Concord New Energy Group (HKG:182) Is Weighed Down By Its Debt Load
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 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. We note that Concord New Energy Group Limited (HKG:182) does have debt on its balance sheet. But is this debt a concern to shareholders?
霍华德·马克思说得很好,与其担心股价波动,‘我担心的是永久性损失的可能性……我认识的每个实际投资者都会担心这个。’因此,聪明的钱知道,债务通常涉及破产,是评估公司风险性的一个非常重要的因素。我们注意到,康和新能源集团有限公司(HKG:182)的财务状况表上确实有债务。但是这些债务是否会令股东担忧呢?
Why Does Debt Bring Risk?
为什么债务会带来风险?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. 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. 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.
债务帮助企业,直到企业遇到无法用新资本或自由现金流偿还债务的麻烦。最终,如果企业无法履行其法律还债义务,股东可能会一无所有。然而,更常见(但仍然痛苦)的情况是,企业需要以低价筹集新股本,从而永久性稀释股东。通过取代稀释,债务可以成为企业在高投资回报率的增长方面需要资本的极好工具。考虑公司的债务水平时,第一步是将其现金和债务一起考虑。
What Is Concord New Energy Group's Net Debt?
康和新能源集团的净债务是多少?
As you can see below, at the end of December 2023, Concord New Energy Group had CN¥16.5b of debt, up from CN¥13.9b a year ago. Click the image for more detail. However, it does have CN¥2.60b in cash offsetting this, leading to net debt of about CN¥13.9b.
正如您在下面看到的,在2023年12月底,康和新能源集团的债务总额为165亿元人民币,比一年前的139亿元人民币增加了。点击图像以获取更多详细信息。但是,它确实有26亿元人民币的现金用于抵消,导致净债务约为139亿元人民币。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240618/0-4b3da0e5dfa8381c6b0bdb729d156fdc-0-b2183201d480398c9691f0c707397c71.png/big)
A Look At Concord New Energy Group's Liabilities
着眼于最新的资产负债表数据,我们可以看到康和新能源集团有68.8亿元人民币的负债到期在12个月内,159亿元人民币的负债到期在12个月后。另一方面,它有26亿元人民币的现金和25.6亿元人民币的一年内到期的应收款项。因此,其负债总额比其现金和短期应收款项的组合多出176亿元人民币。
Zooming in on the latest balance sheet data, we can see that Concord New Energy Group had liabilities of CN¥6.88b due within 12 months and liabilities of CN¥15.9b due beyond that. On the other hand, it had cash of CN¥2.60b and CN¥2.56b worth of receivables due within a year. So its liabilities total CN¥17.6b more than the combination of its cash and short-term receivables.
这里的亏损让这家46.1亿元人民币的公司承受着沉重的负担,就像一个孩子用沉重的背包背着书本、体育用品和小号一样。因此,我们认为股东一定需要密切关注这个问题。毕竟,康和新能源集团如果今天必须偿还债权人,可能需要进行重大的重新资本化。
The deficiency here weighs heavily on the CN¥4.61b 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. After all, Concord New Energy Group would likely require a major re-capitalisation if it had to pay its creditors today.
利息覆盖倍数仅为1.6倍,净债务与EBITDA的比率非常高,这让我们对康和新能源集团的信恳智能受到了沉重的打击。这意味着我们认为其债务负担较重。对于投资者来说,另一个关注点可能是康和新能源集团的EBIT在过去一年中下降了11%。如果情况继续下去的话,处理债务就像把愤怒的猫塞进旅行箱一样难。对于分析债务,资产负债表显然是要关注的领域。但是最终,企业未来的盈利能力将决定康和新能源集团是否能够随着时间的推移加强其资产负债表。因此,如果你想看看这个专业人士的看法,你可能会发现分析师盈利预测的这份免费报告很有趣。
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). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
通过查看公司的净债务与利息、税、折旧、摊销前利润(EBITDA)之比以及它的利息费用(利息覆盖率)可以衡量一个公司的债务负担与收益能力。因此,我们考虑将债务与有无计算折旧和摊销费用的收益相对比。
Weak interest cover of 1.6 times and a disturbingly high net debt to EBITDA ratio of 8.4 hit our confidence in Concord New Energy Group like a one-two punch to the gut. This means we'd consider it to have a heavy debt load. Another concern for investors might be that Concord New Energy Group's EBIT fell 11% in the last year. If things keep going like that, handling the debt will about as easy as bundling an angry house cat into its travel box. 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 Concord New Energy Group 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.
最后,尽管税务局可能喜欢会计利润,但借款人只接受冷硬现金。因此,我们显然需要看一下EBIT是否带来相应的自由现金流。在过去三年中,康和新能源集团花费了大量现金。虽然投资者无疑期待这种情况逆转,但这显然意味着其债务使用更加冒险。
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. During the last three years, Concord New Energy Group burned a lot of cash. While investors are no doubt expecting a reversal of that situation in due course, it clearly does mean its use of debt is more risky.
从表面上看,康和新能源集团的EBIT向自由现金流的转化使我们对股票持谨慎态度,其总负债水平的水平不比每年最繁忙的夜晚空荡荡的一家餐厅更具吸引力。此外,其利息覆盖率也未能增强信心。我们认为,康和新能源集团的负债过多的可能性非常大。对我们来说,这使得这只股票相当具有风险,就像闭着眼睛走狗公园一样。但是,有些投资者可能有不同的看法。资产负债表显然是要关注的领域。但是,最终,每个公司都可能包含存在于资产负债表之外的风险。例如,康和新能源集团有3个警告标志(和1个有点不舒服的标志),我们认为您应该了解这些内容。
Our View
我们的观点
On the face of it, Concord New Energy Group'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. And furthermore, its interest cover also fails to instill confidence. We think the chances that Concord New Energy Group has too much debt a very significant. To us, that makes the stock rather risky, like walking through a dog park with your eyes closed. But some investors may feel differently. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. For example Concord New Energy Group has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.
利润只有会计利润得到税务局的爱戴,而借款人只接受冷硬的现金。因此,我们显然需要看一下EBIT是否带来相应的自由现金流。在过去三年中,康和新能源集团花费了大量现金。虽然投资者无疑期待这种情况逆转,但这显然意味着其债务使用更加冒险。从表面上看,康和新能源集团的EBIT向自由现金流的转化使我们对股票持谨慎态度,其总负债水平的水平不比每年最繁忙的夜晚空荡荡的一家餐厅更具吸引力。此外,其利息覆盖率也未能增强信心。我们认为,康和新能源集团的负债过多的可能性非常大。对我们来说,这使得这只股票相当具有风险,就像闭着眼睛走狗公园一样。但是,有些投资者可能有不同的看法。资产负债表显然是要关注的领域。但是,最终,每个公司都可能包含存在于资产负债表之外的风险。例如,康和新能源集团有3个警告标志(和1个有点不舒服的标志),我们认为您应该了解这些内容。
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.
说到底,有时更容易关注那些甚至不需要债务的公司。读者可以免费查看零净债务增长股票列表,立即获得。
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这篇文章是Simply Wall St的一般性文章。我们根据历史数据和分析师预测提供评论,只使用公正的方法论,我们的文章并不意味着提供任何金融建议。文章不构成买卖任何股票的建议,也不考虑您的目标或您的财务状况。我们的目标是带给您基本数据驱动的长期关注分析。请注意,我们的分析可能不考虑最新的价格敏感公司公告或定性材料。Simply Wall St没有任何股票头寸。
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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