Is Henan Yicheng New Energy (SZSE:300080) A Risky Investment?
Is Henan Yicheng New Energy (SZSE:300080) 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.' When we think about how risky a company is, we always like to look at its use of debt, since debt overload can lead to ruin. We can see that Henan Yicheng New Energy Co., Ltd. (SZSE:300080) does use debt in its business. But is this debt a concern to shareholders?
伯克希尔哈撒韦的查理·芒格支持的外部基金经理李录毫不掩饰地表示:“最大的投资风险不是价格波动,而是你是否会遭受永久损失”。当我们考虑一个公司的风险时,我们总是喜欢看看它的债务使用情况,因为债务负担过重会导致破产。我们可以看到,易成新能源股份有限公司(SZSE:300080)的业务中确实使用了债务。但这个债务是否对股东构成风险?
What Risk Does Debt Bring?
债务带来了什么风险?
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. If things get really bad, the lenders can take control of the business. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution in a company with the ability to reinvest at high rates of return. When we examine debt levels, we first consider both cash and debt levels, together.
债务是帮助企业成长的工具,但如果企业无法偿还债权人,那么它就存在于债权人的掌握之中。如果情况变得非常糟糕,债权人可以接管企业。然而,更频繁发生(但仍然代价昂贵)的情况是公司必须以低价发行股票,永久地稀释股东的权益,以巩固其资产负债表。当然,债务的好处在于它通常代表了廉价资本,特别是当它替代了一家公司的稀释能力,并有能力以高回报率进行再投资时。当我们检查债务水平时,我们首先考虑现金和债务水平。
What Is Henan Yicheng New Energy's Net Debt?
易成新能源的净债务是多少?
You can click the graphic below for the historical numbers, but it shows that as of March 2024 Henan Yicheng New Energy had CN¥3.06b of debt, an increase on CN¥2.29b, over one year. However, it also had CN¥2.51b in cash, and so its net debt is CN¥551.4m.
您可以点击下面的图表查看历史数据,但它显示,截至2024年3月,易成新能源负债总额为30.6亿元,比去年增长了2290万元。然而,它也有25.1亿元的现金,因此它的净债务为55140万元。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240801/0-9b6cb396d60c226c16f221cafe0d4881-0-361bdaffc851c7e718232e745fd5f749.png/big)
How Strong Is Henan Yicheng New Energy's Balance Sheet?
易成新能源的资产负债表情况如何?
The latest balance sheet data shows that Henan Yicheng New Energy had liabilities of CN¥6.89b due within a year, and liabilities of CN¥3.38b falling due after that. Offsetting these obligations, it had cash of CN¥2.51b as well as receivables valued at CN¥3.37b due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by CN¥4.39b.
最新的资产负债表数据显示,易成新能源在一年内到期的负债总额为68.9亿元,到期后要偿还的负债总额为33.8亿元。抵消这些债务,它有25.1亿元的现金以及应收账款总额为33.7亿元,将在12个月内到期。因此,它的负债总额超过现金和(短期)应收账款的总和4390万元。
This is a mountain of leverage relative to its market capitalization of CN¥5.53b. This suggests shareholders would be heavily diluted if the company needed to shore up its balance sheet in a hurry.
这相对于其市值5530万元来说是一大负担。这表明如果公司需要匆忙筹集资金来支撑其资产负债表,股东们将会受到严重的摊薄。
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。
Henan Yicheng New Energy has a very low debt to EBITDA ratio of 1.2 so it is strange to see weak interest coverage, with last year's EBIT being only 0.051 times the interest expense. So while we're not necessarily alarmed we think that its debt is far from trivial. Shareholders should be aware that Henan Yicheng New Energy's EBIT was down 99% last year. If that decline continues then paying off debt will be harder than selling foie gras at a vegan convention. The balance sheet is clearly the area to focus on when you are analysing debt. But it is Henan Yicheng New Energy's earnings that will influence how the balance sheet holds up in the future. So when considering debt, it's definitely worth looking at the earnings trend. Click here for an interactive snapshot.
易成新能源的负债与息税前利润比率非常低,只有1.2倍,因此很奇怪的是,利息覆盖率很弱,去年的息税前利润仅为利息支出的0.051倍。因此,虽然我们不一定担心,但我们认为它的债务远非微不足道。股东应该知道,易成新能源的息税前利润去年下降了99%。如果这种下降继续下去,偿还债务将比在素食主义大会上出售鹅肝更加困难。在分析债务时,资产负债表显然是要关注的领域。但是,易成新能源的收益将影响资产负债表在未来的表现。因此,在考虑债务时,确实值得关注收益趋势。单击此处以查看交互式快照。
Finally, a company can only pay off debt with cold hard cash, not accounting profits. So it's worth checking how much of that EBIT is backed by free cash flow. Over the last two years, Henan Yicheng New Energy saw substantial negative free cash flow, in total. 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而不是会计利润偿还债务。因此,检查多少经营性净现金流支撑息税前利润是值得的。在过去的两年中,易成新能源的经营性净现金流总额大幅为负。尽管这可能是为了增长支出,但它确实使得债务风险更高。
Our View
我们的观点
On the face of it, Henan Yicheng New Energy's conversion of EBIT to free cash flow left us tentative about the stock, and its EBIT growth rate was no more enticing than the one empty restaurant on the busiest night of the year. But on the bright side, its net debt to EBITDA is a good sign, and makes us more optimistic. After considering the datapoints discussed, we think Henan Yicheng New Energy has too much debt. That sort of riskiness is ok for some, but it certainly doesn't float our boat. 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. These risks can be hard to spot. Every company has them, and we've spotted 1 warning sign for Henan Yicheng New Energy you should know about.
表面上看,易成新能源的息税前利润转换为自由现金流使我们对该公司的股票感到犹豫不决,而它的息税前利润增长率也不比一年中最繁忙的晚上唯一的空餐厅更具吸引力。但从好的方面看,它的净债务与息税前利润比率是一个好的迹象,这使我们更加乐观。经过考虑我们讨论的数据点,我们认为易成新能源的债务过多。这种风险对于某些人来说是可以接受的,但它肯定不符合我们的需求。在分析债务水平时,资产负债表是显然首要的地方。然而,并不是所有的投资风险都在资产负债表中,这些风险往往比较难以发现。每个公司都有这些风险,我们已经发现了易成新能源的1个警示信号,您应该了解。
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,有时候更容易集中精力关注根本不需要债务的公司。读者可以免费访问零净债务增长股票列表。
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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
对本文有任何反馈?对内容有任何疑虑?请直接与我们联系。或者,发送电子邮件至editorial-team@simplywallst.com。