Jiangsu Expressway (HKG:177) Has A Pretty Healthy Balance Sheet
Jiangsu Expressway (HKG:177) Has A Pretty Healthy Balance Sheet
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 can see that Jiangsu Expressway Company Limited (HKG:177) does use debt in its business. But the more important question is: how much risk is that debt creating?
霍华德·马克斯(Howard Marks)曾经说过一句话:与其担心股价波动,不如担心“永久性亏损的可能性——我所担心的风险......而且我认识的每个实际投资者都担心这个。”所以看起来聪明的人知道,债务——通常与破产有关——是评估公司风险时非常重要的因素。我们可以看到,宁沪高速公路股份有限公司(HKG:177)的业务中确实使用了债务。但更重要的问题是:债务产生了多少风险?
What Risk Does Debt Bring?
债务带来了什么风险?
Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. 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, debt can be an important tool in businesses, particularly capital heavy businesses. The first step when considering a company's debt levels is to consider its cash and debt together.
债务可以帮助企业,直到企业无法用新资本或自由现金流来偿还债务为止。最坏的情况是,如果企业无法偿还债权人的债务,则可能破产。然而,更为频繁(但仍然代价高昂)的情况是,企业必须以极低的价格发行股票,永久性地稀释股东权益,以支撑其资产负债表。当然,债务可以成为企业的重要工具,特别是在资本密集型企业。考虑公司的债务水平时的第一步是将其现金和债务合并考虑。
How Much Debt Does Jiangsu Expressway Carry?
宁沪高速公路(SEHK:177)负债多少?
The image below, which you can click on for greater detail, shows that Jiangsu Expressway had debt of CN¥34.2b at the end of March 2024, a reduction from CN¥36.2b over a year. However, it does have CN¥6.17b in cash offsetting this, leading to net debt of about CN¥28.0b.
以下图片(单击可放大)显示,截至2024年3月底,宁沪高速公路负债342亿元,较去年减少20亿元。但是,它有61.7亿元现金抵消这笔负债,导致净债务约为280亿元。
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240802/0-34bf4ccf04026ba735aa2fa23fad2246-0-8c36501c211cae0aa8684f77fca1187d.png/big)
A Look At Jiangsu Expressway's Liabilities
我们可以从最近的资产负债表中看到,宁沪高速公路有99.3亿元的到期负债,以及286亿元的到期负债。与此同时,它有61.7亿元的现金和21.5亿的应收账款,到期时间在12个月内。因此,它的负债总额超过了302亿元以上的现金和短期应收账款。
We can see from the most recent balance sheet that Jiangsu Expressway had liabilities of CN¥9.93b falling due within a year, and liabilities of CN¥28.6b due beyond that. Offsetting this, it had CN¥6.17b in cash and CN¥2.15b in receivables that were due within 12 months. So it has liabilities totalling CN¥30.2b more than its cash and near-term receivables, combined.
宁沪高速公路的市值为576亿元,因此如果需要的话,它很有可能筹集资金来改善其资产负债表。但显然,我们应该仔细考虑它能否在不稀释权益的情况下管理其债务。
Jiangsu Expressway has a market capitalization of CN¥57.6b, so it could very likely raise cash to ameliorate 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.
宁沪高速公路的债务与息税前利润(EBITDA)比率为3.6,这表明其债务规模相当大,但对于大多数类型的企业来说仍然相当合理。但其EBIt大约是其利息费用的0.1万倍,这意味着该公司实际上并未为维持这种债务水平支付高昂的代价。即使低成本无法持续,这也是一个好迹象。我们注意到,宁沪高速公路去年EBIt增长了21%,这应该使其未来还债更容易实现。
In order to size up a company's debt relative to its earnings, we calculate its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and its earnings before interest and tax (EBIT) divided by its interest expense (its interest cover). This way, we consider both the absolute quantum of the debt, as well as the interest rates paid on it.
为了比较一个公司的债务与其收益的关系,我们计算其净债务除以利息、税、折旧和摊销前的收益和利息前的收益(其利息覆盖率)。因此,我们考虑了债务的绝对数量以及支付的利率。
Jiangsu Expressway has a debt to EBITDA ratio of 3.6, which signals significant debt, but is still pretty reasonable for most types of business. But its EBIT was about 1k times its interest expense, implying the company isn't really paying a high cost to maintain that level of debt. Even were the low cost to prove unsustainable, that is a good sign. We note that Jiangsu Expressway grew its EBIT by 21% in the last year, and that should make it easier to pay down debt, going forward. The balance sheet is clearly the area to focus on when you are analysing debt. But it is future earnings, more than anything, that will determine Jiangsu Expressway's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
资产负债表显然是您分析负债时需要关注的区域。但最重要的是,与其它任何事情相比,未来的收入将决定宁沪高速公路维持健康资产负债表的能力。因此,如果您想了解专家们的看法,您可能会发现这份关于分析师利润预测的免费报告很有趣。
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, Jiangsu Expressway produced sturdy free cash flow equating to 51% of its EBIT, about what we'd expect. This free cash flow puts the company in a good position to pay down debt, when appropriate.
最后,尽管税务部门可能喜欢会计利润,但贷款人只接受冰冷的现金。因此,我们显然需要查看EBIt是否导致相应的自由现金流。在过去的三年中,宁沪高速公路产生了相当稳健的自由现金流,相当于其EBIt的51%,这正是我们所期望的。这种自由现金流将使公司在适当时支付债务处于一个良好的位置。
Our View
我们的观点
The good news is that Jiangsu Expressway's demonstrated ability to cover its interest expense with its EBIT delights us like a fluffy puppy does a toddler. But truth be told we feel its net debt to EBITDA does undermine this impression a bit. It's also worth noting that Jiangsu Expressway is in the Infrastructure industry, which is often considered to be quite defensive. All these things considered, it appears that Jiangsu Expressway can comfortably handle its current debt levels. On the plus side, this leverage can boost shareholder returns, but the potential downside is more risk of loss, so it's worth monitoring the balance sheet. 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 - Jiangsu Expressway has 1 warning sign we think you should be aware of.
好消息是,宁沪高速公路通过其EBIt支付利息的能力真的很令人高兴,就像松软的小狗对幼儿一样。但老实说,我们认为它的净债务与EBITDA相比,影响了这种印象。值得注意的是,宁沪高速公路处于制造行业,通常被认为具有相当强的防御性。综合考虑所有这些因素,似乎宁沪高速公路可以轻松地处理其当前的债务水平。在积极方面,这种杠杆可以增强股东回报,但潜在的下行风险增加了,因此值得监测资产负债表。
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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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。